Metalloinvest Holds Conference on HBI Applications In Steelmaking
09/20/2013 - Metalloinvest, the only HBI producer in the CIS and the largest producer in Europe, recently held its first “HBI Application in Steelmaking: Technology, Financing and Markets” conference which was organized at Lebedinsky GOK (part of the Metalloinvest group).
Over 60 representatives of leading CIS steelmaking companies, as well as Russian and international experts in steelmaking technology, financing, operations and market analysis, attended the conference.
Nazim Efendiev, first deputy CEO of Management Company METALLOINVEST commented, “HBI application is efficient in high grade steel production, as it allows reducing the share of non-ferrous metals and deleterious impurities. Another particular feature of HBI application is the energy efficiency both at the production stage and during the processing at a steelmaking plant. In addition, the use of this modern iron ore raw material decreases negative impact on the environment. These factors positively influence demand for HBI globally. This conference gave us an opportunity to receive first-hand information and study in great detail and depth the prospects of HBI application by the Russian steel producers. I am confident that one of the outcomes of the conference will be an increase in HBI application in the domestic steelmaking. It is also worth noting that the largest plants from Russia and neighboring countries took a particular interest in the conference’s topic.”
In the presentation on the current environment and prospects for various steelmaking components, Yuri Mishin, operations advisor at Management Company METALLOINVEST, highlighted that, at present, Russian steelmaking plants mainly use scrap and alternative materials, while HBI and pig iron are used in insignificant quantities at minimills. At the same time, it is expected that scrap supply will decline due to commissioning of new EAF capacities and declines in the collection of scrap. HBI allows companies to reduce dependency on the scrap market, in particular for high-grade steel production, as well as to optimize raw materials costs.
Commenting on the use of HBI in steelmaking, Jeremy Jones, vice president of process services at Tenova Core (U.S.), noted that using the mixture of HBI and low-grade scrap can provide significant economic benefits. According to the estimates presented by Mr. Jones, the use of HBI/ DRI, on average, resulted in a decrease of production costs by US$5.50 to US$53 per tonne of scrap. HBI also ensures the stability of EAF operations due to the constant and identifiable chemical composition. The HBI’s high density makes it easier to transport, load and store this material.
According to Robert Hunter, director for marketing and application of iron products at Midrex, HBI is a powerful tool for increasing productivity of blast furnaces. To illustrate his point, Mr. Hunter used an example of AK Steel (U.S.), which increased its productivity by almost 25% after adding metallic iron to the furnace charge.
Mr. Hunter referred to HBI as “the key to production of steel with low copper and nitrogen content.” There has been an increase in demand for steel grades with low impurity levels, partly because of the oil and gas industry development and growing demand for seamless tubes and pipes produced from such steel.
The factors above are driving the growing interest in HBI as a steelmaking material all over the world. Metalloinvest thereby has been expanding production of this raw material.
At the conference, Oleg Mikhailov, managing director of Lebedinsky GOK, presented a project for construction of HBI-3 Plant with the overall capacity of 1.8 million tonnes per year (currently LGOK’s production level is 2.4 million tonnes per year). The plant is expected to be commissioned in 2016.
Nazim Efendiev, first deputy CEO of Management Company METALLOINVEST commented, “HBI application is efficient in high grade steel production, as it allows reducing the share of non-ferrous metals and deleterious impurities. Another particular feature of HBI application is the energy efficiency both at the production stage and during the processing at a steelmaking plant. In addition, the use of this modern iron ore raw material decreases negative impact on the environment. These factors positively influence demand for HBI globally. This conference gave us an opportunity to receive first-hand information and study in great detail and depth the prospects of HBI application by the Russian steel producers. I am confident that one of the outcomes of the conference will be an increase in HBI application in the domestic steelmaking. It is also worth noting that the largest plants from Russia and neighboring countries took a particular interest in the conference’s topic.”
In the presentation on the current environment and prospects for various steelmaking components, Yuri Mishin, operations advisor at Management Company METALLOINVEST, highlighted that, at present, Russian steelmaking plants mainly use scrap and alternative materials, while HBI and pig iron are used in insignificant quantities at minimills. At the same time, it is expected that scrap supply will decline due to commissioning of new EAF capacities and declines in the collection of scrap. HBI allows companies to reduce dependency on the scrap market, in particular for high-grade steel production, as well as to optimize raw materials costs.
Commenting on the use of HBI in steelmaking, Jeremy Jones, vice president of process services at Tenova Core (U.S.), noted that using the mixture of HBI and low-grade scrap can provide significant economic benefits. According to the estimates presented by Mr. Jones, the use of HBI/ DRI, on average, resulted in a decrease of production costs by US$5.50 to US$53 per tonne of scrap. HBI also ensures the stability of EAF operations due to the constant and identifiable chemical composition. The HBI’s high density makes it easier to transport, load and store this material.
According to Robert Hunter, director for marketing and application of iron products at Midrex, HBI is a powerful tool for increasing productivity of blast furnaces. To illustrate his point, Mr. Hunter used an example of AK Steel (U.S.), which increased its productivity by almost 25% after adding metallic iron to the furnace charge.
Mr. Hunter referred to HBI as “the key to production of steel with low copper and nitrogen content.” There has been an increase in demand for steel grades with low impurity levels, partly because of the oil and gas industry development and growing demand for seamless tubes and pipes produced from such steel.
The factors above are driving the growing interest in HBI as a steelmaking material all over the world. Metalloinvest thereby has been expanding production of this raw material.
At the conference, Oleg Mikhailov, managing director of Lebedinsky GOK, presented a project for construction of HBI-3 Plant with the overall capacity of 1.8 million tonnes per year (currently LGOK’s production level is 2.4 million tonnes per year). The plant is expected to be commissioned in 2016.
