Mobarakeh Steel Co. Produces Interstitial

Transcription

STEEL
NEWSLETTER
Mobarakeh
All Provinces
Benefit from
Activities of
Mobarakeh
Steel Company
P.8
January 2015 No. 01
Mobarakeh Steel Co.,
Giant Step
Forward in Islamic
Establishment:
Advisor to
Supreme Leader
Mobarakeh Steel Co. Produces
Interstitial-Free Steel at Hot Rolling Unit
P.1
Iran’s Steel
Exports Hit 1.3
Million Tons
in 10 Months
P.2
P.2
P.7
P.2
P.2
P.2
Bahman 1393 www.msc.ir
Mobarakeh Steel
Company accounts
for 52 percent of Iran’s
steel production
Mobarakeh Steel
Company Holds
Record for Water
Conservation: Senior
Technical Manager
Social Responsibilities
of Mobarakeh Steel
Company’s
SAIPA still willing to
purchase steel from
Mobarakeh Steel
Company
Editorial
Objectives of
Mobarakeh Steel
Newsletter
Iran’s steel exports hit 1.3 million tons in 10 months
Fooladnews.com has quoted the
President of Iran’s Steel Producers
Association Bahram Sobhani as
saying, “Since March 21, 2014, Iran
has exported as much as 1.36 million
tons of steel of which 1.03 million
tons was exported from Isfahan’s
Mobarakeh Steel Company, some
230, 000 tons from Hormozgan
Steel Company and 100, 000 tons
from other steelworks across the
country.”
Sobhani, who also serves as
managing director of Mobarakeh
Steel Company and chairman of
Hormozgan Steel Company’s board
of directors, further said “Iran’s steel
exports stood at 1.25 million tons last
year.”
He added, “Among other things,
steel imports and a global drop in
iron ore and energy prices have
plunged local steel producers into
recession.”Sobhani went on to say,
“The cost of raw materials such
as iron ore and energy are among
factors which contribute to the
rise or fall in the cost price of steel.
Global factors such as the fall in
iron ore and energy prices have
put foreign steel producers at an
advantage and sent local producers
through a rough patch.”Recalling
the water crisis in Iran, he said,
“Scarce water resources in areas
where steel production used to be
economical have prompted steel
mills to be relocated to coastal
regions.”Sobhani predicted that in
the not-too-distant future, certain
areas on the Persian Gulf and
Sea of Oman will turn into Iran’s
steel production hub. As for the
offering of part of Hormozgan Steel
Company’s shares on the stock
exchange, he said “Stock exchange
indexes have declined in recent
years. That means the stage is not set
for the sale of the company shares.
We have been waiting for things to
look up, because selling shares in
times of recession is the worst thing
to do.”
Mobarakeh Steel Co. produces
interstitial-free steel at hot rolling unit
Seyyed Mahmoud Mani, an
engineer at the hot rolling unit of
Mobarakeh Steel Company, said:
“Following the establishment of
RH-TOP degassing unit in the
steel making and casting section
of Mobarakeh Steel Company,
which facilitated the production
of steel with low levels of
carbon, the hot rolling unit has
produced interstitial-free (IF)
steel for the first time based on
qualitative conditions and thermal
parameters. The feat came after
thorough analyses and formulation
of a procedural method which
conforms to parameters in
reheating furnaces, roughing
rolling, and finishing rolling.”
As for IF steel sheets, Mani said:
“IF steel is a type of high tensile
steel. Due to its high formability,
it is appropriate for deep drawing
which is mostly used in automaking. Due to its special
ultimate tensile strength (UTS),
yield point and extremely low
levels of carbon, this type of steel
is used in special products the
making of which requires specific
conditions.”
He went on to say, “Around
2,000 tons of this type of steel
is produced in hot rolling.
Depending on orders placed by
carmakers, a certain percentage
of hot rolling production will be
We need to attract foreign investment:
Iranian deputy trade min
U
nder a 5-phase joint venture between Iran
and Kuwait a steel mill is to be set up in the
Persian Gulf Special Mineral Industry Zone
in southern Iran.
On December 10, SMT, a daily, ran a brief report about the
comments of Deputy Trade Minister and Chairman of the
Iranian Mines and Mining Industries Development and
Renovation Organization (IMIDRO) Mehdi Karbasian
about the necessity of the inflow of foreign investment. He
also offered some explanations about the terms of a June
MoU between Iran and Kuwait. What appears below is a
partial translation of what he had to say:“Domestic sources
for investment are not enough if Iran is going to fulfill the
objectives of the 20-year Economic Outlook Plan [which
is due 2025] and consolidate its position as the leading
economic power in the region. Iran is in strong need of
foreign investment along with improved productivity,”
said the deputy minister.
“Under a Memorandum of Understanding signed in
June, 2014 between Iran’s IMIDRO and Kuwait Steel
Company, the two sides agreed to jointly build a steel
mill in the Persian Gulf Special Mineral Industry Zone
(Bandar Abbas),” the chairman of IMIDRO added.
“The expanse of land where the steel plant will be
constructed has been chosen and is under preparation
for the joint project. In late November a delegation
representing Kuwait Steel Company and a number of
investors travelled to Bandar Abbas [in the southern
P.5
Iranian province of Hormozgan]. That was followed
by a decision as to where the steel plant was to be built.
The Persian Gulf Special Mineral Industry Zone is now
getting the lot prepared,” he further said.
Elaborating on the details of the joint construction
project Karbasian said, “Under the MoU, a direct
reduced iron (DRI) facility with the capacity of 1.6
million tons will be constructed in the first phase of the
joint project. The second stage includes the construction
of a steel mill with the capacity of 1 million tons. In the
third phase, a rolling mill with a capacity of one million
tons will be set up and a pelletizing plant with the
capacity of five million tons will mark the final stage of
the joint venture.”/ iran front page
allocated to IF steel.”
Regarding the type and conditions
of IF steel production, he said: “One
of the most important parameters of
hot rolling, which should be taken
into account in producing highquality IF steel sheets with desirable
mechanical characteristics, is
the finishing temperature of the
final rolling. It should be 900°C
(920°F). Generating this heat
requires a special design and
implementing specific conditions
in various parts of hot rolling. The
coiling temperature of IF steel is
one of the parameters affecting
its mechanical characteristics.
It must be around 700°C.”In
conclusion, he thanked various
units of the steel mill including
the hot rolling unit, PPC and
MPT for their contribution to
achievement of this goal.
2
STEEL
NEWSLETTER
NEWS
NEWS
Mobarakeh Steel Company
among global trendsetters
for low consumption of
refractories
Mobarakeh Steel Company has set a record
for cutting down the consumption of refractory
materials. In a bid to push the consumption of
refractories to their lowest level in Isfahan’s
Mobarakeh Steel Company, academic research and
cooperation with local refractory producers saw
refractory consumption at the company plunge to
6.69 kg per molten ton in the 30 days to November
22, 2014. The achievement has helped the company
become a model for steel producers around the
world. “We established an unprecedented record of
6.69 kg of refractory materials per molten ton in all
units of the steel complex in November 2014. Such
a record along with the fall in costs it has brought
about can set an example for all steel mills in Iran and
the Middle East and even the best steelworks in the
world,” said Gholamreza Soufian, the head of the
Refractory Center at Mobarakeh Steel Complex.
“Refractory materials used at steelmaking and
continuous casting plants stood at 6.69 kg per molten
ton. The amount of refractories used by other units
at Mobarakeh Steel Complex was 0.04 kg per
molten ton in the 30-day period. Constant process
improvement, implementation of 38 projects at the
Refractory Center, consumption of high-quality
refractory materials, and continuous monitoring of
the production process have made this achievement
possible,” he added.Soufian put the previous figure
for refractory consumption at 7.07 kg per molten
ton and said, “The achievement indicates a 0.38-kg
decline in the consumption of refractory materials
per molten ton which has taken place mainly in
electric arc furnaces and steel cauldrons.”He went
on to say, “At the Unified International Technical
Conference on Refractories (UNITECR) 2011,
the goal of using 5kg of refractories per molten ton
in steel plants was floated. In 1950, in the upper
parts of steel furnaces, instead of water-cooled
panels, refractory bricks would be used, and
consumption of refractories stood at 50 kg per ton
of steel. “Therefore, well-established steel mills
decided to push their refractory consumption down
to 5 kg per ton of liquid steel in 2015. In 2001,
Mobarakeh Steel Company and its subsidiaries
launched efforts in tandem with other world steel
producers to achieve that goal. Those efforts are
still ongoing and fortunately, Saba Steel Complex,
Hormozgan Steel Company and Mobarakeh Steel
Company have made remarkable progress on that
front.” Stating that a reduction in consumption of
refractory material amounts to a drop in costs per
ton of slab, he added, “A 95-percent share of Iranianmade refractories in the total amount of refractory
materials used in Mobarakeh Steel Complex, and
application of dolomite and magnesite-dolomite
(mag-dol) refractories in the flooring of electric arc
furnaces, which are much cheaper than aluminum
refractories and magnesia refractory bricks, have not
only lowered the volume of refractory consumption,
but also brought down the costs to an acceptable
level.”Soufian congratulated the management
and staff at Mobarakeh Steel Company on such a
remarkable achievement, and expressed hope that
in line with improvement in production processes
and Kaizen Principle (constant promotion of
activities), a decline in consumption and operating
costs including those of electricity, electrodes, water,
natural gas and refractories carries on so that they can
render the final price of steel more competitive.
January- 2015 | Bahman-1393
Mobarakeh Steel Co.,
Giant Step Forward in Islamic
Establishment:Advisor to Supreme Leader
D
uring an inspection tour
of the production lines of
in Isfahan, Dr. Ali Akbar Velayati
called the company a source of honor
for the national industry when it
comes to production, knowledge and
technology.
He said, “All the employees of
Mobarakeh Steel Company share
the pride and I value all of them,”
emphasizing that the quantitative and
qualitative productions of Mobarakeh
Steel Company are the origin of great
services in related industries.
Saying that Mobarakeh Steel
Company has perfectly followed its
development process, the advisor to
the Supreme Leader said, “We are
proud that this factory has been able
to claim a major share of the domestic
steel production through making
itself up-to-date. It has set the stage
for the company to be successful
not only in supplying the domestic
market needs, but also in non-oil
exports through its powerful presence
in domestic and international
markets.
“This company not only does not
receive foreign exchange from the
government, but it contributes greatly to
foreign exchange earnings. It is what the
Supreme Leader always emphasizes.
The national economy should be helped
through exports of non-oil goods, not
sales of raw materials and creation of
more added value.”
He described Mobarakeh Steel
Company as one of the greatest steps
forward in the sacred system of the
Islamic Republic of Iran and said,
“Great efforts and good management
in the company have set the stage
for the employees to produce
ambitiously.”
The head of the Strategic Research
Center of the Expediency Council
said, “The development of domestic
steel industry and enhancement
of its quality can create a good
competitive condition and lead us
to the realization of our industrial
vision,” while calling Mobarakeh
Steel Company’s performance in
production and earning hard currency
as a perfect example for other Iranian
industrial factories.
Steel Giants En Route
ISMC Steel Conference Jan.
27-28 in Tehran
Three steel industry giants
from Spain, Italy, and Germany
are planning to build factories
in Iran to produce industrial
and mineral machinery and
equipment, Mohsen Parvan,
secretary of the 5th Iran Steel
Market Conference (ISMC
2015) told Eghtesadnews.
The three steel manufacturing
companies include the Italian
Danieli, one of the three largest
suppliers of equipment and
plants in the metal industry, the
German SMS Group, a global
leader in plant and mechanical
construction for metallurgical
process chain, and the
Spanish Sarralle, specialized
in
engineering,
design
and manufacture of heavy
equipment, Parvan informed.
The three companies will be
attending the ISMC 2015,
which is scheduled to be
held in Tehran January 2728. The conference will also
be attended by other major
steel companies from China
and Finland as well as by the
domestic steelmakers.
According to Parvan, the three
companies have identified
the sites where they aim to
establish steel machinery
and equipment factories. The
Sarralle Company is set to build
a factory in Shahriar County
near Tehran while the other two
have chosen the central city of
Isfahan for their factories.
“Such projects are longterm plans that help boost
the country’s steel industry
progress,” Parvan remarked,
adding that “the Metal Bulletin
– the international publisher
and information provider for
the global steel, non-ferrous
and scrap metals market – has
also decided to hold a steel
conference in Iran.”
The ISMC 2015 has become
one of the most prominent
steel industry conferences
in Iran, with big foreign and
Iranian companies attending
the event. The two-day
conference will be host to more
than 100 foreign guests from
Italy, Spain, Turkey, Russia,
the UAE, and Australia and
officials from the China Iron
and Steel Association. Top
Iranian officials including the
First Vice President, Es’haq
Jahangiri as well as officials
SAIPA still willing to purchase steel
from Mobarakeh Steel Company
During a visit to the assembly
line of SAIPA car manufacturer
by Dr. Sobhani, the CEO of
Mobarakeh Steel Company, and
his accompanying delegation, Mr.
Madani, the CEO of the carmaker,
said that “SAIPA is still willing to
purchase its required steel from
Mobarakeh Steel Company since
it strengthens Iranian steel industry,
especially in the field of steel
sheets.”
He further said, “Since the operation
of the RH-TOP unit at Mobarakeh
Steel Company has started, the
company has become powerful in
manufacturing steel sheets used
in car-making. This company is
expected to mass produce such
sheets and thus help SAIPA to a large
extent.”
Dr. Sobhani, the CEO of Mobarakeh
Steel Company warmly welcomed
the idea. “Like before, Mobarakeh
Steel Company is supplying a high
percentage of the steel required by car
companies,” he said.
It should be noted that strategies
needed to achieve the objectives
of SAIPA and Mobarakeh Steel
Company were discussed during
this visit.
from the ministry of industry,
mine, and trade and the Iranian
Mines and Mining Industries
Development and Renovation
Organization (IMIDRO) will
also attend the conference.
The conference will focus
on balanced and sustainable
development
in
Iran’s
steel industry, investment
opportunities in the steel
sector, and the steel and iron
ore market outlook for Iran and
the world in 2015. It will also
review the comprehensive steel
plan focused on localizing the
steel industry in Iran.
Based on the 20-year Vision
Plan for 2025, the country
should reach annual steel
production of 55 million metric
tons by 2025, while the current
production is estimated to be
around 16 million metric tons;
making Iran the 15th biggest
producer of steel in the world.
During the first three quarters of
the current Iranian year (March
21-Dec 21, 2014), more than
12.6 million metric tons of steel
was produced, registering a 6%
increase compared with the
similar period in 2013.
During the nine-month period,
ranked first among producers
with 1.36 million metric tons,
followed by Khuzestan and
Isfahan steel companies.
Production of galvanized
steel sheets, reinforcing bars
(rebars), girders, and hotrolled plates in this period
also increased by 3.6%
compared to the previous year.
financialtribune.com
accounts for 52 percent of Iran’s
steel production
Iran’s steel production hit 8,159,087
tons in the eight months to November
22, 2014, of which 52 percent was
produced at Esfahan’s Mobarakeh
Steel Group, which brings together
Mobarakeh Steel Company, Saba
Steel and Continuous Casting Co.,
and Chahar Mahal & Bakhtiari
Automotive Sheet Co.
According to the Iranian Mines &
Mining Industries Development &
Renovation Organization (IMIDRO),
hot rolled plates – 4,388,937 tons –
accounted for the bulk of products in
the eight-month period (almost 54
percent of Iran’s steel production).
Next is rebar with a production
capacity of 1,765,938 tons, making
up around 22 percent of the entire
steel products, followed by iron girder
which claimed an 11 percent share
(897,331 tons) in the same period.
According to the report, Mobarakeh
Steel Company and Esfahan Steel
Company together have produced
more than two-thirds (74 percent) of
the country’s steel products over the
eight months in question. Given the
products of Chahar Mahal & Bakhtiari
Automotive Sheet Co., 52 percent of
steel has been produced in Mobarakeh
Steel Company and another 21.7
percent has been produced in Esfahan
Steel Company.
STEEL
NEWSLETTER
NEWS
Mobarakeh Steel Company Holds Record for
Water Conservation: Senior Technical Manager
T
he steel industry consumes 18
to 25 cubic meters of water
to produce a ton of steel,” the
senior manager of technical and support
services at Mobarakeh Steel Co. said in
an interview with Fars News Agency in
Isfahan.
“However, at Mobarakeh Steel
Company, thanks to integration and
implementation of various projects,
only 5 cubic meters of water is used
to produce a ton of steel and that is a
third of the global average. According
to surveys conducted, Mobarakeh
Steel Company holds the record for
water conservation in the world. In
fact, the amount of water that is used
by Mobarakeh Steel Company also
includes the water used by the power
plant,” he said.
Asserting that power plants of most
steel manufacturing companies in the
world are considered separate from
steel manufacturing, Mehdi Tavvlayian
also said, “If you subtract the amount
of water used by the power plant of
Mobarakeh Steel Company, the figure
slides to 3.5 cubic meters, which is one
fifth of the international standard.”
Stating that energy management and
planning to reduce water consumption
at Mobarakeh Steel Company's
manufacturing lines was initiated in
2000 and still continues to this day, the
senior manager said, “So far, 300 billion
tomans ($100 million) has been spent
on implementing energy conservation
projects at Mobarakeh Steel Company.”
Tavvlayian said further efforts and
investments are underway at the
company to reduce water and energy
consumption and added, “With the
investment Mobarakeh Steel Company
has made in the implementation of
a project to collect, treat, and use the
wastewater of nearby cities, another
great step will be taken toward better
treatment of urban wastewater and
its optimal use in the manufacturing
cycle.”
He described water hardness as a
measure of water use in the steel
industry and said “Receiving water with
appropriate hardship, that is 150 to 180,
will greatly enhance water productivity
at the company”.
He said, “By defining process
management for its activities and
implementing energy management,
Mobarakeh Steel Company has been
partially successful in mitigating energy
dissipation in various sections.”
He also added that “According to
current statistics, a look at energy
consumption at Mobarakeh Steel
Company for production of each ton
of steel indicates that Mobarakeh Steel
Company has a better position than
most countries, including China, India,
and Saudi Arabia. It is in a position
close to South Korea, but far behind
European countries.”
Stating that at Mobarakeh Steel
Company, 24 GJ of energy is consumed
per ton of steel, Tavvlayian added
“Most countries consume 30 to 32 GJ;
but the amount of energy consumption
in Europe is about 18 to 19 GJ.”
Pointing out that industrialized
European countries utilize scrap metal
instead of iron ore, something that
leads to a significant decline in energy
consumption, he added “At Mobarakeh
Steel Company, more than 90% of
the products are made from iron ore
and thus a larger amount of energy is
required.”
The senior manager of technical and
support services at Mobarakeh Steel
Company stated, “Scrap metal is rare
and expensive in Iran and currently its
application is not cost-effective.”
In conclusion he said, “Potential
reasons for energy dissipation in the
system and ways to recover this energy
will be simultaneously investigated.
In tandem, a project to recover energy
from the output of the gas plant of
Mobarakeh Steel Company is being
implemented with a credit of 60 billion
tomans ($20 million).”
He described electricity and steam
generation using CHP with an
efficiency rate of 70% as another
initiative of the company to increase
energy productivity.
3
NEWS
Hormozgan Steel Co.’s
role in national economy
appreciable
Mahmoud Akhlaghi, the deputy executive director
of Mellat Bank for Urban Areas and a group of
the bank’s managers have met with Morteza
Aghajani, the managing director of Hormozgan
Steel Co. to discuss strategies for collaboration and
interactions between Mellat Bank and Hormozgan
Steel Co.
At the meeting which came after an inspection tour
of the steelmaker, Mahmoud Akhlaghi expressed
satisfaction with Hormozgan Steel Company’s
operations.
He further said Hormozgan Steel Co. has played
a role not only in the development and growth of
industry but also in the country’s economy, adding
that the company is a source of pride and called for
more collaboration and interaction between the
company and Mellat Bank.
Underlining that Hormozgan Steel Co. helps meet
the needs of other industries, he noted, “We need
to make efforts to help this company take greater
steps by implementing its development projects to
supply our country’s needs.
He went on to say, “As a primary lender in the
establishment of this company, this bank is
ready to help Hormozgan Steel Co. implement
development projects.”
For his part, the managing director of Hormozgan
Steel Co. said, “If we want to make the industry
profitable, all banks should put forth solutions.”
He further stated that banks should give technical
advice to industrialists and entrepreneurs.
He added “Effectiveness, functionality and
capability are prerequisites for the banking
system’s involvement in business activity. So far,
Mellat Bank has had a great role in advancing
this company’s goals and we hope their role will
remain as prominent as ever.”
Iranian Steel Producers Association
Draws National Steel Atlas, Key to
Balanced Expansion of Production Chain
One of the main prerequisites for balanced
formation and expansion of every industry is the
availability to investors and industrialists of indepth information on all operational production
units, the layout of all production units, the
capacity of production units and their products
and vital statistics and indexes about that industry.
In light of the fact that such information was
conspicuous by its absence in one of the most
strategic industries of the nation, that is to say
the steel industry, the Iranian Steel Producers
Association decided to draw a National Steel
Atlas to encompass detailed information on all
production units in the country’s steel production
chain, from mines to final products.
With the Iran Steel Market Conference around the
corner [slated to be held in late January], Seyyed
Mohammad Reza Daneshgar, the executive of the
National Steel Atlas project and a veteran expert,
expanded on the project and why it was launched
in an interview with Donya-e Eqtesad daily.
What objectives does the National Steel Atlas
follow? What ambiguities about the steel industry
is it expected to clarify?
Up until 20 years ago, three or four state-owned
giants had a monopoly on steel which is a
strategic national industry. They would meet part
of the country’s steel needs and the rest would be
imported from abroad. The late 1990s and early
00s saw the gradual debut of semi-governmental
and private firms in steel production.
With the emergence of small- and medium-sized
producers, the private-sector's foray into the steel
industry began to gather pace in the late 00s. New
mills, both small- and medium-sized, which
primarily focused on melting and rolling made it
onto the national steel market. Today the number
of players in the industry has increased markedly.
More than 130 mills, whose production capacity
ranges from 30,000 tons to several million tons,
are operating across the country. Almost all of
these plants work on development projects as
they go about their daily production. Besides,
up to 80 public and private steel plants focusing
on pelletizing, direct-reduced iron, melting and
rolling are under construction. Their nominal
capacity ranges from 100,000 tons to 5 million
tons.
At present, many steel producers or managers of
steel projects are simply unaware of the details of
other industrial units or plants under construction.
Information on the quality and quantity of steel
produced in all plants is what industrialists
and investors need in order to make strategic
decisions. In addition to helping them meet the
country’s steel needs, such information would
enable them to procure raw material, market
their products, and remain in the black in the
competitive marketplace.
Besides many upstream industries and those
which render services to steel producers, such
as steel engineering firms, and suppliers of raw
materials, refractory materials, melting furnaces,
rolling lines, and steel industry equipment and
parts need in-depth information on the market and
their rivals. They will definitely benefit from the
atlas project.
In industrialized countries, publication of
industrial maps along with databanks dates back
many years. For instance, Platts [a well-known
provider of energy and metals information]
publishes a world steel atlas which is a wealth of
information about global steel giants. In Iran oil
and gas atlases have been published for years, but
a steel industry atlas has yet to be released.
Anyway, presently there is no comprehensive
reference book on the steel industry which covers
all the links in the production chain. As a broadbased, specialized body that brings together most
of the country's steel producers, the Iranian Steel
Producers Association has stepped in to create an
in-depth National Steel Atlas and meet the needs
of the country’s industrialists and investors.
Through the National Steel Atlas, industrialists
and steel industry managers can access indepth information on steel producers, projects
underway and other infrastructural issues that play
a role in the steel industry. By the grace of God, a
first edition of the atlas was printed and unveiled
at a Metafo Exhibition in Tehran. The final
package which also includes maps and detailed
information about Iranian steel mills and related
infrastructure will be released in the coming
months.
Local and global markets seem to be heading
toward recession. What do you think of the future
of these markets?
Continuing declines in oil prices along with a drop
in iron ore prices to below $70 a ton have triggered
a price decline in other markets, including the steel
industry which was already poised to slide thanks
to a lethargic local market.
Consequently, a drop in global steel prices in
reaction to sluggish economies in Europe, Japan
and China on the one hand, and a decline in the
prices on the local market of oil and iron-ore,
which are the main materials in the production
of steel, on the other, have translated into further
price cuts.
The unpredictability of the iron market coupled
with the declining trend in oil and mineral prices,
including iron ore, on global markets and efforts
by China and Russia to export inexpensive
steel to target markets have prompted a flurry of
discussions and efforts in Iran and other countries
to adopt protectionist policies and take antidumping measures like imposition of tariffs on
steel imports.
With hopes of a rally on the local market dim,
such contemplation is primarily designed to avert
the total decimation of the industry as a result of
an influx of cheap Chinese products and prevent
the situation from getting even worse. However,
a decision on tariffs on steel imports has yet to be
finalized. In light of the fact that the Russian Ruble
has lost half its value, Russian dumping poses a
serious threat to the local market too.
With the local market in the grip of a deep
recession, what do you think the government
and the industries ministry should do to shore up
producers and industrialists? And what are the
prospects of an exit from recession?
At present, in addition to a review of the budget
bill variables and their likely impact on the steel
industry, the most important question facing the
industrialists is the declines in global prices and
the likelihood of dumping in the Middle East and
Iran. The fact that Russia has a surplus supply
and global prices have declined along with
speculations by the Russians that Iran could be a
lucrative market for their products has sounded
the alarm bells of dumping.
Although members of the Iranian Steel Producers
Association have made extensive efforts to
convince the Ministry of Industries, Mines
and Trade to impose and or raise tariffs on steel
imports, ministry officials have yet to say how
much levy will be imposed and on what products.
The first step to help local producers is to
introduce compensatory and anti-dumping
tariffs to stop the flow of foreign products into
the country. That can be a prelude to creation
of a working capital fund as approved by the
Islamic Consultative Assembly a few days ago
to eliminate the problems standing in the way of
production.
The parliamentary decision calls for executive
instructions to be drawn up within three months,
since the law is communicated, to lend capital
to producers involved in industrial, mineral,
agricultural, and transport units, as well as to
production guilds, knowledge-based agencies
and export firms. These instructions should be
in line with the Usury-free Banking Act. Timely
implementation of this law would be a step
toward reducing the liquidity-related problems of
manufacturers, including steel producers.
When it comes to minerals, Iran holds a number
of advantages. But the country's steel production
is fraught with shortcomings. What is the weakest
link in the chain of steel production?
A look at the current capacity of the steel industry
– in four main areas, namely pelletizing, direct
reduction, melting and rolling – reveals that
although the industry has an advantage as far
as minerals are concerned, investment in and
development of the sector has been far from
balanced and there are shortcomings when it
comes to pellets and direct-reduced iron.
In the 12 months to March 21, 2014 production of
iron ore, concentrates and crude steel stood at 51
million tons, 24 million tons and 17 million tons
respectively. Those figures include the production
of private entities too. The products were enough
to meet the country's needs for 29 million tons of
concentrates and 25 million tons of pellets.
In previous years, investors tended to put their
money in areas with quick returns such as melting
and rolling.
The country's real capacity to produce direct
reduced iron stands at 13 million tons and the
main producers include Mobarakeh Steel
Company, Khuzestan Steel Company, Khorasan
Steel Complex, Hormozgan Steel Company,
South Kaveh Steel Company, Arfa Steel
Company (in Yazd), Iranian Ghadir Steel and
Iron Company (in Yazd), and Sirjan Iranian
Still Company (in Kerman). In addition, more
than 10 direct-reduced iron projects which are
expected to produce at least 800,000 tons are
under construction and projected to become
operational next year. Some of them are part of
eight provincial projects on reduction and melting.
The ones focusing on reduction have posted 50
to 80 percent progress and have been privatized.
Presently pellet production stands at around 20
million tons and the projects underway will add
some 50 million tons to the national capacity.
4
STEEL
NEWSLETTER
NEWS
NEWS
Expansion of cooperation
between Mobarakeh Steel
Company and Oman
The biggest exclusive exhibition of Iranian
industrial products in the Persian Gulf region
kicked off in Oman with Iran’s minister of
industries, mines and trade and Omani minister
of commerce and industry in attendance. The
two ministers stressed the need for mutual
cooperation.
[Mobarakeh] Steel Newsletter reported that
Sobhani, the managing director of Mobarakeh
Steel Company, welcomed visitors to the
company’s pavilion at the exhibition and
elaborated on the capabilities of Mobarakeh in
turning pellets into sponge iron and producing
various types of steel sheets.
According to the report, Iran’s biggest exclusive
exhibition opened on Tuesday (January 6) at the
Muscat International Fairground in the presence
of Mohammad Reza Nematzadeh, Iran’s Minister
of Industries, Mines and Trade, Ali al-Sunaidi, the
Omani Minister of Commerce and Industry, and
120 business officials from the countries as well as
the Oman-based foreign ambassadors.
The Iranian minister accompanied by an economic
and trade delegation was in Oman to take part in
the 15th Iran-Oman Joint Economic Commission
and a conference on trade and investment
opportunities in the Islamic Republic of Iran.
In a meeting with Salim bin Nasser Al-Ismaily,
the Chairman of the Omani Public Authority for
Investment Promotion and Export Development
(PAIPED), Nematzadeh highlighted the potential
of Iranian companies as the two officials explored
ways of developing [bilateral] ties and removing
obstacles standing in the way.
For his part, Salim bin Nasser briefed his guest on
investment opportunities in Oman and expressed
his country’s readiness to expand economic ties
with the Islamic Republic of Iran.
Iran’s exclusive exhibition, held on a 2,649 square
meter area, opened on January 6 and wrapped
up its work on January 10. Eighty-six Iranian
companies specializing in construction materials,
technical and engineering services, electronics,
carpets, pharmaceuticals, car-making, electricity,
foodstuff and dried fruits, furniture and interior
design, and steel industries participated in the fiveday exhibition.
E-Library of Mobarakeh Steel
Company launched
Nasser Javdani, the head of Mobarakeh Steel
Company's office for interaction with universities
and research centers, said the company has
launched an electronic library. “Our colleagues can
now access 34,467 books on various topics such
as engineering, architecture, IT, basic sciences,
medical sciences, agriculture, management,
economics, accounting, law and English language.
The e-library available at http://1lib.msc.ir has
become a reality thanks to the collaboration of IT
and System Management.”
He added, “Easy access and ease of use, low
operating costs, and advanced searching capabilities
are some of the advantages of the up-to-date
e-library”.
Javdani added that the following steps must be taken
to access the e-library:
1.Select e-library on the library webpage
2.Select “install software” from the open menu
3.Click “Run”
4.Click “Run” again
5.Wait for the software to be installed
6.After the initial installation, two options will
appear on your desktop. The first option is to launch
the software, and the second features a training
video of the software.
7.To launch the software select KAD software.
8.Select OK in the setting window, since it is the first
time the software is running on your system.
9.Select Ok in the next window, to update the index,
and wait until the preparation is complete.
10. Now the software is ready to use. It is not
necessary to be a system administrator to run the
software
The head of Mobarakeh Steel Company's office for
interaction with universities and research centers
thanked all officials and staff involved in this
project.
Modernization of Control Loop System in
Pre-heat Furnaces 1 and 2 of Hot Rolling Complete
A
project aimed at modernizing
the control loop system in preheat furnaces 1 and 2 of hot
rolling at Mobarakeh Steel Company
has been carried out successfully.
Abdolkarim Molaei, who coordinated
the activities of contractors tasked
with developing hot rolling 1 and 2,
said, “In line with the instrumental
role of Mobarakeh Steel Company
in industrial development, and in
promotion of productivity
and
sustainable growth through cooperation
with national suppliers and firms, and
in order to promote the indigenization
of the steel industry, the project to
modernize the control loop system of
hot rolling was launched with the help
of seasoned experts at the International
Systems Engineering and Automation
Company (IRISA) and the cooperation
of experts and staff at Mobarakeh
Steel Company. After an experimental
run, the project was handed over
to the operator of hot rolling on the
anniversary of Mobarakeh Steel
Company.”
When asked about the reason why
the project was initiated, he said,
“Given numerous hardware and
software problems that the old control
loop system (Hartmann & Braun)
had, the modernization project was
conceived before IRISA was tasked
with implementing it. The problems of
the old system included unavailability
of spare parts, the slow pace of its
operation, inconsistency between
the system and the new automation
[program] of hot rolling, slow
troubleshooting and impossibility
of hardware or software upgrades in
proportion to an increase in production
and constant promotion.”
Underscoring the fact that the
engineering, and preliminary and
detailed design of the project have been
done for the first time by IRISA, Molaei
said, “Building on the knowledge of
veteran experts and the capabilities of
maintenance specialists in pre-heat
furnaces, the company embarked on
designing software, hardware, and HMI
control functions in the form of PCS7
(Process Control System).
As for different stages of the project, he
said, “According to the timetable, the
process of designing, engineering, and
software and hardware development
of the project took place in the year
leading to March 20, 2014. The first
phase of the project – having the
control loop system of furnace two
replaced during the 9-day annual
maintenance shutdown of hot rolling –
was completed by February 11, 2014.
The second phase of the project was
carried out during the 6-day annual
maintenance shutdown of hot rolling.
The second phase was handed over
to the operator of hot rolling ahead
of schedule.”Molaei said optimal
implementation, completion ahead of
schedule, and remarkable cooperation
between the IRISA executive team and
production and maintenance teams of
pre-heat furnaces of hot rolling were
among outstanding features of the
project.In conclusion, Molaei thanked
the management and his colleagues
who helped develop and operate hot
rolling, IRISA, the monitoring system
and all others who contributed to the
project.
Local production of 850 parts at Mobarakeh Steel Company
“In line with the localization policies
aimed at maximum procurement and
production of the required high quality
items by the domestic markets at
competitive prices, Foulad Mobarakeh
Esfahan Company has placed high on
its 2014-15 agenda the preparation and
completion of technical specifications
for 12,000 of its material codes as well
as localizing the procurement of 850
items of its foreign purchases.”, said
Mohammad Rajaei, the Director of
Technical Office, Foulad Mobarakeh’s
Repair and Maintenance Department.
He reiterated,”For the first time,
measures have been taken to produce/
procure 477 parts domestically
through Iranian companies.” The
Director remarked that the purpose
of the localization policy was to use
the existing domestic production/
procurement potentials to supply the
required items without forsaking high
quality standards and timely delivery.
He further added, ”Preparation and
completion of 60,000 material codes
have been included in the Company’s
five-year outlook.”
Regarding
localization
policies
for the required accessories/spare
parts, the Technical Office Director
said, “This process shall take place
in five phases. The first phase
includes identification, specialized
classification, prioritization, and
preparation of the items; the second
phase involves preparation and
completion of the technical documents
in line with localization; the third phase
is to identify the eligible producers
and engaging them in technical
negotiations; the fourth phase entails
price quotation and ordering; and
the fifth and final phase is devoted to
the production process, its control,
possible modifications, hot testing,
and preparing the final instruction
manuals.” Rajaei continued, “To make
the most of domestic potentials and to
prevent foreign exchange outflow, the
Repair and Maintenance Technical
Office has, in line with localizing
the production/procurement of the
required items, further intensified
its efforts in the period from March
to September 2014 by taking the
following measures: considering
localization of 6988 material codes
for which purchase orders have
already been issued; providing 13675
technical IDs for 3099 material
codes, preparing 2553 datasheets for
1814 material codes to complete the
required technical information and
documents for domestic production
or procurement of these items; and
replacing 99 sanctioned or outdated
parts. As a result of these measures, 477
parts were manufactured or procured
through domestic companies.”
Rajaei referred to the successful
procurement/production efforts made
by Foulad Mobarakeh in the following
areas: machinery and accessories,
consumables, and raw materials,
and added, “In the machinery and
accessories sector, out of a total number
of 7660 items worth one billion
783 million 952 Iranian rials, 5109
items (66.7%) were included in the
localization plan between March and
September 2014. In the consumables
sector, 7893 items worth 632 billion
298 million rials had initially been
considered for localization; so far,
localization of 7864 items (99.63%)
has been realized. And, regarding the
377 initially predicted raw materials
worth 17 thousand 665 billion 532
million rials, 329 items (87.27%) have
already been made operational as a
result of our localization policies.”
Rajaei also referred to the technical
specification booklets provided in
Foulad Mobarakeh Company from
late March to late September 2014,
remarking, ”Since March 2014,
technical booklets have been provided
for 2099 material codes, and we
hope, by March 2015, to increase this
number to 5400 booklets. We have
already prepared 2553 of the 6600
data sheets due to be completed in late
March, 2015.”
In closing, Rajaei referred to the
numerous
manufacturers
and
suppliers participating in the First
Conference on Selected Suppliers for
Foulad Mobarakeh Esfahan (held at
the Company’s headquarters in last
week of October, 2014) and the very
positive results obtained during this
conference, adding, “We hope the
planned schedules and the adopted
localization approach taken by the
Foulad Mobarakeh Management shall
bear fruit in the near future, and that by
implementing these policies, we can
extend our localization process and
succeed in procuring 100% of steel
industry’s required equipment and
other items via Iranian companies. Our
hope is to even export our know-how
in the future.”
Hormozgan is the first choice for steel development
On the eve of the fourth year of operation
of Hormozgan Steel, Dr. Sobhani, the
CEO of Mobarakeh Steel and chairman
of Hormozgan Steel Company, attended
the hiking event held for this occasion
and in an interview with reporters, said:
“Due to advantages such as being located
on the coast of Persian Gulf and access
to free waters, Hormozgan Province is
the first choice for steel development in
the country.” He stated that in the not too
distant future, the beaches of Persian Gulf
will become the steel production base in
the country, and added: “To accomplish
this, one must create the necessary
infrastructure, such as the development
of docks and the possibility of loading
and discharge of products, and utilities
(water, electricity, gas) needed for the steel
industry in the province.”Dr. Sobhani
stated that more than 1500 billion dollars
have been invested for the launch of
Hormozgan Steel, and announced of
the supply of Hormozgan Steel shares
in the Stock Exchange. He pointed to
the important role of non-oil exports in
the country economy, and stated: “Last
year, one million and 80 thousand tons
of types of steel products of Mobarakeh
Steel were exported to European and Far
East markets, from which 250 thousand
tons were allocated by Hormozgan Steel,
while in 9 months of this year about one
million tons of steel were exported, from
which 230 thousand tons were allocated
by Hormozgan Steel, so we need to have
a wider and more serious planning to
increase exports, especially the share of
Hormozgan Steel.”
He considered pellet shortage as one
of the challenges facing the country’s
steel industry and stressed the need to
construct a 2.5 million ton pelletizing
plant at the beginning of the production
line in Hormozgan Steel. At the end,
Chairman of the Board of Hormozgan
Steel said: “Currently, 16 million tons
of steel are produced in the country, and
Hormozgan steel accounts for 10% of
steel production by producing one and a
half million tons.”
STEEL
NEWSLETTER
INTERNATIONAL
Steel
NEWS
China’s Exports Get Tougher Competition
P
ricing pressures on steel have
intensified, not least for long
products as China’s domestic
recovery appears to have been and
gone. Indeed, though supply/demand
fundamentals had been tightening
within China earlier in market relied
increasingly on the
ability of China to export its surplus but
international demand for Chinese steel
has more recently been slowing.
While the slowdown is partly seasonal
and also tax-related (see below)
in nature, it also relates to a more
competitive environment for Chinese
exporters. Turkish rebar prices have
now begun to decline far faster as
increasing Chinese competition has
caused Turkish suppliers to react.
The effects have been felt widely in
international scrap markets as Turkish
purchasing managers have exercised
their pricing power.
Now that a reduction in the tax rebate
for Chinese exporters, starting this
January, is being mooted, there would
appear to be a limit to how much further
prices can fall but despite Turkey’s
recent price cuts, there are still huge
China versus rest of world price
differentials that will not disappear by
the mere reduction in sales tax rebates,
which in most cases are limited to 9%.
In fact, the only palpable downside to
Chinese exports remains the same as
last month: a huge pick-up in domestic
consumption, which would also rein
in China’s surging supply share of exChina apparent consumption.
China’s rebates are greater for flatrolled products, at least in cold-rolled
if not hot-rolled form,While our
October forecast of $80/tonne iron
ore cfr Qingdao proved decent for the
MBIOI62 – the final average came in
at $80.52/tonne cfr – our stable forecast
for November was, not for the first time
this year, a little optimistic. At the time
of writing in late-November, the iron
ore spot price benchmark had retreated
to a monthly average of $74.53/
tonne cfr and market participants at a
conference in Ningbo had informed
MBR that a $70/tonne level, already
breached on November 25, would not
represent a short-term floor.
Although the continued downturn
had surprised us from a fundamentals
perspective (see below), it was certainly
consistent with the technical analysis
we detailed earlier in the quarter.
Indeed, as the MBIOI62 settled on our
target of $71.80/tonne cfr on November
5
Global zinc demand
Global zinc demand is forecast to rise by
5.1% this year, said Paul White of ILZSG at
the above Antaike conference, while demand
is expected to rise by 2.9% in 2015; the latter
includes a
4.8% rise in Chinese demand. The closure of
MMG’s Century zincmine in Australia will start
to have an effect on supply from 2016,
while mine supply outside China is expected to
fall by 2.2% thisyear. This is mainly due to a sharp
fall in output from HindustanZinc’s Rampura
Agucha, the world’s largest zinc mine, which
isbeing converted from open pit to underground,
White said.
Latin American steel
demand to rise in 2015
18, the next ‘technical’ target would not
come before a level of around $66.70/
tonne; far below the perceived comfort
levels of all but the “big three” miners.
Clearly the slowdown in Chinese steel
and related pig iron production has
impacted sentiment among iron ore
suppliers and further reductions in price
are increasingly predicted. But to what
extent is Chinese demand for iron ore
really slowing down? October was the
first month steel production reportedly
fell in China on a year-on-year basis
since the last big steel destocking year
of 2012,but the degree was just 0.3%.
Moreover, when compared with what
the authorities had recorded this time
last year when the provisional figure
was comparatively big for October
at and so the impact of their removal
could well be more significant, at the
very least in the European market
where domestic coated steel prices are
now lower than equivalent imports exChina. Following the announcement
of comparatively profitable results in
Q3,European mills are under pressure
to lower prices but, at current levels,
further downside risks are most likely to
come in the USA, the most robust flatrolled market MBR covers.
Unsurprisingly, domestic prices have
continued to fall over the past month but
remain at a distant premium to most others.
Moreover, the latest data from the
service centre institute, the MSCI,
suggests that flat-rolled market
fundamentals have actually tightened of
late, with stock/shipment ratios for the
most widely traded products slipping
to just 2.2 months in October. It is in
this unique context that mill efforts to
put an end to price falls by launching a
$20/ton gain for December shipment
were not so badlyreceived at the time
of announcement in mid-November.
In our view, US prices will not be able
to rise without similar efforts overseas,
which seem unlikely before the end of
the year.
Over 9% year-on-year, this year’s
actual number was some 3.7% higher
still or over 2.4 million tonnes. MBR
recognises that having supposedly
grown last year by over 13% to 822
million tonnes, rather than the 7.5% (to
779 million tonnes) initially recorded,
Chinese steel production and related
iron ore demand was and is bound to be
slowing down this year and it will be a
surprise if the year-on-year decline first
recorded in October does not accelerate
towards the end of the year.
Following the APEC related cuts earlier
in November, however, there is also
little doubt that steel production will be
Latin America’s finished steel consumption is
forecast to rise by 2.5% year-on-year in 2015 to
70.6 million tonnes, Mart‫ي‬n Berardi, president of
the region’s steel association, Alacero, has said.
The increase will be driven by consumption in
Mexico, which is forecast to grow by 3.5% next
year. Colombia will see a 2.7% rise, Brazil a 1.5%
rise and Argentina a 1.2% rise.
But Latin America’s steel demand is estimated to
grow by only 0.1% year-on-year in 2014 to total
68.9 million tonnes, against an original estimate
of a nearly 4.5% rise. The weak performance
is mainly due to poor activity in the region’s
construction and automotive sectors.
Nedstaal files for
bankruptcy
rapidly picking up again, which should
support efforts to replenish inventories
of iron ore.
While we have our doubts that
iron ore prices have any further
fundamental reasons to fall, scrap
prices are undergoing different
dynamics. Despite the sudden falls
over the past two months – the
Chicago busheling benchmark has
fallen $45/long ton since September
– the corrections still make scrap
comparatively
overvalued
by
approximately the same amount
again.For access to MBR’s detailed
product and regional price, supply
and demand forecasts or for a free
sample of MBR’s Steel or Steel Raw
Materials Market Trackers:
www.metalbulletinresearch.com/
freesample.aspx
Analysis by Alistair Ramsay,
research manager. Aramsay@
metalbulletinresearch.com
Editorial
Objectives of Mobarakeh Steel Newsletter
Esfahan’s
Mobarakeh
Steel
Company
is
the largest industrial
complex of I.R. Iran
which produces half of
Iran’s steel production.
Since the establishment
of the company, founders
placed special emphasis
on building a company
Mohammad Nazemi Harandi which has processes and
products complying with international standards
and would be able to provide global quality
products. Therefore the company always has put
this issue on the top of its goals.The company’s
mission and vision as its highest ideal goals –
which all programs are coordinated to achieve
them - in addition to affording helps to Iran
development, have particular emphasis on being a
world-level organization.
Esfahan’s Mobarakeh Steel Company has always
moved forward in the path of excellence on the
basis of far-sighted and inspiring leadership,
sustainable and balanced results, and success
through innovative and creative employees.
In all systems of strategic planning, quality
management, change management, process
management, maintenance management, human
resources management, knowledge management
and social responsibility, the company has tried to
follow and implement the newest global systems.
And according to these successive efforts, now
the company is the only winner of golden prize
of Iranian National Productivity and Excellence
Award.
Esfahan’s Mobarakeh Steel Company has
been exporting to over 38 countries and
has had many important companies’ names
in its customers list. In 2007, the company
received the certificate of product compliance
with European standards. In 2025 vision, the
company plans to produce 25 million tonnes
of steel products and increase its share of
global steel market. To reach this goal, the
company needs to improve its communication
with global community and this requires
appropriate communication media. By this
newsletter we are trying to experience a better
communication with you and I hope that this
first step would promise an excellent medium
for continuous contact with you.
Netherlands-based independent steelmaker
Nedstaal filed for bankruptcy on October
17. “The company has faced losses since the
beginning of the [global financial] crisis in 2009,”
said the company.
“These are caused by a combination of relatively
high purchase prices and low market prices,
as well as continuously weak demand in the
sectors of machine construction, mining, wind
energy and large-scale capital goods,” it added.
The steelmaker, located in Alblasserdam, has
280 employees and produces ingot-cast steel
for forging and ball-bearing consumers, such
as automotive manufacturing. It has an annual
turnover of almost €100 million, according to
company figures.
Posco commissions new
hot strip mill
Posco has officially commissioned the No.4 hot
strip rolling mill at its Gwangyang integrated
steelworks in South Korea. The mill has capacity
to produce 3.3 million tpy of hot-rolled coil of
thickness 1.2-22 mm and width 700-1,950 mm,
the company told Steel First.
Posco previously disclosed that most of the No.4
mill output will be supplied to its new 1.8 million
tpy cold rolling mill in Maharashtra in India.
Pakistan Steel unlikely to
resume soon
Pakistan Steel stopped crude steel production on
October 9 and has so far failed to resume,sources
close to the mill told Steel First in November. Market
participants in the country do not expect production
to restart at any time in the near future.
The company has two blast furnaces and a total
crude steel capacity of 1.1 million tpy, but the No.
2 furnace has been idled for over a year. Earlier this
year, Pakistan Steel received PRs18.5billion ($178.6
million) in bailout packages from the government.
6
STEEL
NEWSLETTER
INTERNATIONAL
NEWS
Zinc
Ali Pandir
“Our Main Investment Area
is in the Automotive Sector”
E
The bull case becomes less compelling Zinc
prices are waiting for the fundamentals to
catch up with the price rally from earlier in
the year.But the near-term fundamentals look
weaker and the longer-term prospects are
deteriorating, in MBR’s view. The looming
concentrate market shortage has been flagged
up for many years, which has provided
miners ample time to respond, in the form of
new capacity commitments, expansions and
restarts. And then there is still the backstop of
Chinese swing supply in the form of its vast
small-mine sector.
Future concentrate tightness has become
more about the zinc majors syncing startups with scheduled closures than about
absolute shortages.If investors start to take
our view that the bull story is becoming
less compelling, then this may lead to lower
support levels coming into play sooner rather
than later.If that happens, there is a danger
that zinc could be like nickel and give back a
large portion of this year’s impressive rally.
Tin
Price downtrend has bottomed Rather like
lead, tin has suffered a prolonged downtrend
in prices since the summer, but that seems to
have bottomed out now. In tin’s case the low
was $19,250/tonne in mid-October. By late
November, prices have recovered back to the
$20,500/tonne area – a two-month high. We
think the market can build on these gains in the
short term because, technically, the down-cycle is
complete. There is little to justify a fast recovery
though, so we think prices will be characterised
by more of a choppy sideways-to-high trend,
taking their cue from technicalindicators and
the wider market.Tin’s fundamentals are hard
to read. Demand is weak, and Indonesia, China,
and now Myanmar, make up the key supply side.
The problem for predicting tin’s fundamentals is
that all three countries have some very grey areas
when it comes to tin supply, whether it relates to
actual production, costs, stocks or the form in
which the tin is being exported.
More foreign investors arrive
IRNA-Iran’s capital market has witnessed
participation of a number of foreign investors from
Germany, Britain, Syria, China and Afghanistan
over the past two months.
Public relations department of Central Securities
Depository of Iran (CSDI) quoted Hamed Soltani,
managing director of CSDI, as saying 27 foreign
investors joined the stockholders at Iran’s capital
market after passing legal procedures.
Eight individuals from China and 16 others from
Afghanistan are among the foreigners who have
entered Iran’s capital market in last two months, he
said, according to shana.ir.
According to him, a company from Germany was
the first foreign company which managed to get the
stock holding code in Iran capital market in 1994.
The figures show that foreign investors have
increasingly expressed their willingness for
engaging in Iran’s capital market during this
Iranian calendar year ending on 20th March 2015.
The figures also indicate that during the first 10
months of this year, 97 investors from Britain,
Russia, Germany, Switzerland, China, India,
Turkey, Lebanon, Iraq, Pakistan, Syria and
Afghanistan as well as 25 Iranian living abroad
have started their activities in the capital market
of Iran.Setting up the committee of foreign
investment in capital market and revamping
regulations will facilitate foreign investors’
participation in Iran’s capital market further,
managing director of CSDI concluded.
rdemir Group’s chairman
and ceo, Ali Pandir, is
focused on positioning
his company to benefit strongly
from the future growth in the
automotive industry, reports Steel
First’s Vera Blei
The Turkish integrated steelmaker
Erdemir aims to sell 40% of its
production to the automotive
sector this year. “Erdemir Group’s
main investment area is in the
automotive sector,” Pandir said.
“In 2010, Erdemir was selling
17% to the automotive industry,
but in 2014 we are aiming to sell
40% to the sector.”
Pandir’s automotive insights are
not from the outside-in, but very
much from the inside-out. He
brings to Erdemir a wealth of auto
sector experience. Since starting
work at a supply company to
the industry in 1980, right up to
joining Erdemir in November
2013, he has worked in the
automotive industry (see career
summary box).
The
recovery
in
car
manufacturing in Europe leads
Pandir to take a positive outlook
for next year. “The Economic
Committee of the European Steel
Association, Eurofer, foresees
that the total automotive output
in the EU will increase by 4.5%
[this year], while total automotive
output is expected to rise by
around 3% next year,” Pandir said.
“Therefore we may say that the
year 2015 will bring optimistic
improvements in the flat steel
industry.”
He also sees support for
rising demand in flat steel in
Erdemir’s home market from
measures planned by the Turkish
government.
“According to the 2014-2017
Mid-Term Economic Programme
which was declared by the Turkish
government, there will be an
increase in fixed asset investment
in 2015 and also a recovery
in construction and industry
businesses is foreseen due to
domestic investments,” Pandir
pointed out. “As a consequence,
We expect Turkish flat steel
consumption to rise by 3% in 2015
Profile
20 | Metal Bulletin Magazine |
December 2014 – January 2015
Flat product R&D
Large-dimension galvanized steel
production is an important focus
for the company if it is to achieve
its sales targets to the auto industry,
and it is making some strategic
investments in this area.
Today Erdemir is able to produce
330,000 tpy of galvanized steel.
With the new investment the
company is looking to double
that volume and to add larger
dimensions of flat steel to its
product mix. The new investment
will allow Erdemir to offer more
competitive prices to its auto
clients together with advantages
in logistics and inventory
management, Pandir said.
“One of the major advantages of
[using local] suppliers is logistics
and physical proximity,” said
Pandir. “Increasing the domestic
supply of flat steel is really
important for the automotive
industry and with a domestic
supplier the industry will save
money, which is one of the most
important industry goals,” he
added.
He sees investments in flat steel
and in R&D as critical to creating
the right investment climate for
the auto industry in Turkey: “If the
automotive industry can obtain
flat steel from domestic suppliers,
then new investments and projects
for manufacturing will come to
Turkey.”
The Erdemir ceo, who has a
degree in mechanical engineering,
proudly highlights the Group’s
new R&D Centre in Ereğli,
which is approved and certified by
Turkey’s Ministry of Science,
Personal career history
Ali Pandır studied Mechanical
Engineering at Istanbul Technical
University.
His career started in Tekersan
Jant Sanayi and he moved to Koc
Holding in 1982, where he served
as project manager until 1984.
Then, he worked as production
manager in Otokar between 1984
and1989.
He joined General Motors in
1990, where he held several
managerial positions in GM
Turkey, Opel Germany, GM
China, GM Singapore and GM
Indonesia until he joined Fiat
Group in 2006.
He was the ceo and board member
of Tofas–Fiat Group until 2012.
Before joining the Erdemir Group,
he was the country head of Fiat
Turkey.
After a 33-year professional career
to date, he is now the chairman
and ceo of Erdemir Group.
‘With the launch of this centre,
we are planning to develop new
products with high added value
and to reduce the current level
of dependence on imports in our
national economy’
Large-dimension steel production
is an important focus for Erdemir
Industry
and
Technology.
“Our R&D centre is the first
certified centre in the iron and
steel manufacturing sector in
Turkey,”Pandir said.
The facility has a material
characterisation
laboratory
composed of material preparation,
microstructure
evaluation,
dynamic
thermo-mechanic
simulation and metal forming
laboratories. With the new R&D
centre, the company aims to meet
the requirements of a range of
manufacturing industries.
In the first half of 2015, as part
of its R&D operations, Erdemir
is also planning to launch the
first R&D Simulation Centre in
Turkey.
“With the launch of this centre,
we are planning to develop new
products with high added value
and to reduce the current level
of dependence on imports in our
national economy,” Pandir said.
Steel versus aluminium
Is his switch from the
steelintensive end-user sector to a
steelmaker a vote of confidence in
steel as the raw material of choice
for carmakers in the future over
competition from aluminium and
carbon fiber?
The challenges in producing
aluminium outweigh the benefits
and it will therefore not replace
steel in the automotive industry,
according to Pandir. “The
aluminium plants are too scarce to
meet the needs of the automotive
industry and the investment costs
are high. This [will most] likely
increase the use of steel as the
future base material,” he said.
Out of 1.5 billion tonnes of steel
produced globally on average,
about 12-15% (180-225 million
tonnes) is used in the automotive
industry.
Total
worldwide
aluminium production stands at
25-30 million tpy on average, he
estimated.
Erdemir performance
Pandir took up his roles, as
chairman and ceo, on November
15, 2013 and 2014 will be his first
full year in charge.
In the first nine months of this year
Erdemir sold 6.1 million tonnes
of finished steel. Flat steel sales
volumes increased by 12% to 5.2
million tonnes compared with the
same period last year. In the same
period Erdemir Group’s net profit
increased by 36% to $562 million
on revenues of $4 billion, the
company said.
“The profitability of the Group
comes from the economy of scale
and from our agility – these are
our main assets,” Pandir said.
“Being a company with one of the
highest capacity utilization ratios,
our main focus area is growth in
manufacturing.”
Over the January to September
period Erdemir’s crude steel
capacity utilisation stood at 93.3%.
Around 90% of the Group’s flat
steel sales were to the domestic
market with the remaining 10%
dedicated to export sales.
Apart from growing sales to the
automotive industry, Erdemir
is also looking to diversify and
expand its export markets, to
maintain its sales to domestic rerollers and to service procurement
of pipe projects.
However, Turkish steelmakers are
facing a number of challenges.
The conflict between Russia
and Ukraine and the tension and
military action in Syria and Iraq
have had an impact on its export
markets, as has the slow recovery
in the European economy.
Erdemir is not highly exposed
to Iraq and Syria, but some of
its customers are selling into the
region and have seen exports
decline. The company is looking
to
Compensate for any shortfalls
by increasing sales to other
customers.
Pandir, therefore, does not expect
much change in the company’s
performance up to the end of
2014. “Despite the turmoil and
economic uncertainty in the
region, we believe that industrial
production will remain stable
at current levels. The European
economy is recovering slower
than expected while the
turbulence in the Middle East
affects regional consumption,”
Pandir said. “In the meantime,
total global crude steel production
in the first nine months of 2014
increased by 2.1% year-on-year.
So overall, we are in line with our
estimations for the last quarter of
the year.”
Trade cases
While Erdemir is looking to grow
its exports, Pandir is concerned
about the rise in protective
measures in the steel industry
around the world.
The
US
Commerce
Department’s International Trade
Administration, in its recent
OCTG anti-dumping case,
took the view that Erdemir is a
stateowned company and that
pipemaker Borusan was buying
coils from Erdemir at a lowerthanmarket price. Pandir describes
the decision as a “complete
mistake”.
“Erdemir is not a state-owned
or controlled corporation. Some
47.63% of its shares are freely
traded at the Istanbul stock
exchange,” he said.
The majority of Erdemir was
privatized in 2006 through an
international bidding process.
The winner of the bidding was
the Turkish Military Personnel
Assistance and Pension Fund
(OYAK) and the runner up was
ArcelorMittal, Pandir said.
“OYAK is definitely not a
government entity; it does not
benefit from any government
contribution of any kind; it [is not
subject to] any state influence.
OYAK is just a pension fund,
comprising private savings
of military personnel. It is
Turkey’s first and biggest
privately-owned
pension
fund,” he said.
Since OYAK beneficiaries
are public servants, the US
Commerce Department took the
view that Erdemir is a government
entity.
“This is a very vague approach
and does not conform to the
practices of the World Trade
Organisation,”Pandir said.
He also pointed out that similar
funds, such as the California
Public Employees Retirement
System and the City of Los
Angeles Fire & Police Pension
Plan are also shareholders in
the Erdemir Group. ”With this
approach, Erdemir might have
been ruled to be controlled by the
city of Los Angeles or the state
of California, which would be a
rather bizarre reasoning!” Pandir
said.
He also rejects any notion that
Erdemir would supply hot rolled
coil with less than adequate
remuneration (LTAR). Erdemir’s
steel pricing is determined by
market conditions, he said,
adding: “Erdemir does not
provide LTAR steel, it is a
profiting company.”
‘Our R&D Centre is the first
certified Centre in the iron and steel
manufacturing sector in Turkey’
STEEL
NEWSLETTER
SOCIETY
W
Social Responsibilities
of Mobarakeh Steel Company’s
7
NEWS
hen it comes to social
responsibilities,
Esfahan’s
has adopted multiple approaches and
implemented several plans; it has also
contemplated special approaches for
the future. Since the establishment of
the company, there has been large-scale
environmental and social contribution
associated with its social responsibilities.
Based on its lofty ideals, not as a mere
producer but as an influential contributor
to economic and social development, the
company has always taken numerous
measures as far as its social responsibilities
are concerned. It is not easily possible to
enumerate them all. Thus, in each field, a
number of major steps associated with the
company’s social responsibilities will be
named:
Infrastructural development
in the region and the
province:
Mobarakeh Steel Company has made
significant contribution to infrastructural
development in the region and the
province. In order to pave the way for the
fulfillment of its objectives, in many cases,
the company has taken action to complete
the infrastructure in the province. For
instance, during construction because of
the country’s infrastructural shortcoming,
the company took measures such as
reinforcement of the communication
infrastructure, including roads, bridges,
railroads, etc. To have the equipment
transferred, over 140 km of power lines
was installed.
Aside from the moves already mentioned,
in line with its social responsibilities,
the company has taken the following
measures on infrastructural development:
Contributing some 50 billion rials ($1.65
million) to the comprehensive subway
project of the province
Implementing a project to set up a
sewage system in the cities of Mobarakeh
and Lenjan with 1,200 billion rials ($40
million) in contribution
Contributing to the construction and
development of emergency centers in the
region and the province
Paying 2,300 billion rials (more than $76
million) to the municipality in value added
tax between 1999 and 2013
Paying over 2,500 billion rials ($83
million) in other taxes between 2001 and
2013
Paying 7.5 billion rials ($2.5 million)
to obtain over 32 permits from other
organizations for the implementation of
development projects
Implementing 44 road development
projects to tap into the infrastructural
potential and promote road safety with
costs running into billions of rials
Setting up four cultural and Koranic
centers to promote an Islamic-Koranic
culture among the families of staff
Constructing and developing education
and research centers.
1
Socio-cultural development:
Socio-cultural development is
among social responsibilities.
The following are some of the measures
the company has taken on this front:
Contributing to the promotion of public
culture by holding religious and Koranic
ceremonies and competitions
Supporting sports and cultural
institutions
Taking measures in honor of the
families of martyrs, war veterans, and
2
former POWs to promote the culture of
selflessness
Cooperating with organizations and
oversight bodies to help foster public
culture and [monitor] environmental
indexes as part of the social responsibilities
of the company.
Promotion of public health:
The company is of the opinion
that ensuring health is not only
a social responsibility but that healthy
beneficiaries can give the company some
advantages through improvement of
efficiency and the liveliness of the staff.
In doing so, the company has taken steps
toward developing different projects:
Offering sports services to staff members
and their families. For instance, the
company has held track and field and
cycling competitions. Provision of sport
services, either free of charge or at a
discount, to the staff is another example.
Paying attention to women’s sports and
offering services to female staff
Helping promote professional sports
by purchasing the Foolad Mobarakeh
Sepahan Sport Club whose extensive
activities include paying attention to
sports for the youth and teenagers, spotting
talents and investing in training them at an
early age
Forming teams in different sports such as
football, handball, karate and so on.
3
A respectful attitude toward
staff members:
From the get-go, Mobarakeh
Steel Company has regarded its staff
not simply as a factor contributing to
production, but as a human asset and
treated them with dignity. In line with such
an approach, it has taken the following
steps:
Meeting the communication needs of
staff through different means including
opinion polls, periodical meetings with
managers, establishing communication
channels such as a comprehensive system
of information and improvement in
organizational communications
Organizing various educational
programs for the staff to help them with
career advancement
4
Offering programs to promote the
general education of the staff members
Crafting and implementing mediumterm interactive programs between
management and staff
Organizing programs to elicit
cooperation from and generate motivation
among staff members through plans such
as [employee] feedback system, and
groups contributing to the improvement of
such motivating systems
Offering welfare and recreational
programs for staff members such as loans,
[pleasure] trips, bus services, provision of
meals, sports facilities, counseling services
and organization of sightseeing excursions
or tours to holy sites
Offering healthcare programs such as
healthcare insurance and complementary
insurance coverage along with periodical
medical examinations to all employees.
Attention to variety:
The company has always tried
to ensure equality between
minorities within the organization in
terms of employment, promotion and
appreciation of the services offered. The
following are some of the efforts made in
this respect:
Ensuring the presence of different
ethnicities and religious minorities within
the organization
Enforcing equal regulations for all in
terms of employment, promotion and
appreciation of their services
Holding ceremonies to praise the services
of minorities within the organization such
as a special ceremony to mark Women’s
Day during which presents are handed
to women, and offering gifts to Christian
employees to mark the New Year.
5
Striking a balance between
work and life:
The company has always
tried to create a balance between work
and life for the employees and broaden
the understanding of their families about
their working conditions. The following
are some of the measures the company has
taken:
Implementing projects to study the
quality of the professional life of the
6
employees, changes in the efficiency of
human resources management and its
stimuli
Holding competitions, and cultural,
sports, entertainment gatherings for the
families of the employees
Setting the stage for the staff to take leave
Offering gifts on the birthdays of the
employees’ spouses
Presenting different educational courses
on different family-related topics
Offering psychological counseling along
with social services to the employees and
their families to help them strike a balance
between family and professional life
Managing the overtime that the staff
members put in to prevent them from
being present in the company for too long
Organizing periodical visits to the
company by the employees’ families to
deepen their understanding of the working
conditions
Lowering the working hours of female
employees to help them handle their
family lives better.
Creation of a safe and
healthy job atmosphere:
The safety and health of
the workplace is another aspect of
social responsibilities Mobarakeh Steel
Company has always tried to improve
not only for the personnel but also for the
contractors. The following are some of the
company’s measures to that end:
Planning to minimize workplace
accidents that harm the personnel and
contractors
Planning to minimize occupational and
work-related diseases the personnel and
contracted may catch
Promoting workplace workouts to
improve the health of staff
Trying to improve the eating habits of the
personnel.
7
Contribution to the
country’s economic
development:
Mobarakeh Steel Company has taken
key steps to advance Iran’s economic
development by generating direct and
indirect
employment,
indigenizing
production and boosting other industries.
8
Some of the things the company has done
in this regard are as follows:
Generating upward of 350,000 direct and
indirect jobs
Participating in efforts to develop,
construct and make operational steel mills
in five provinces
Exporting more than 1.5 million tons of
products to about 40 countries.
Helping personnel
voluntarily take part in social
activities:
The company has, without fail, supported
volunteer work by its personnel and paved
the way for them to get involved in such
activities. The following are part of what the
company has done to date:
Setting the stage for the personnel to
donate blood and offer assistance to orphans,
inmates, patients and quake-stricken people
Holding Koranic recitation and
memorization
competitions
and
encouraging the personnel to take part in
such events
Encouraging the personnel and contractors
to sign up with the Basij Volunteer Force and
take care of volunteer activities.
9
Humanitarian aid:
The company values human
dignity and thinks it is not
simply for the personnel. That’s why it has
contributed substantially to humanitarian
efforts.
Helping supply equipment for safety and
healthcare organizations in the region
Sending aid to the areas stricken by
natural disasters
Sending [financial] aid to rehabilitation
centers, the Imam Khomeini Relief
Committee, and the caregetters of the
Welfare Organization of Iran
Enrolling as a member in the board of
trustees of charitable organizations
Offering annual assistance to the Kidney
Foundation of Iran
Attending Golrizan [a fundraiser] to
collect money for releasing the prisoners
who are behind bars for failure to pay
blood money for committing unintentional
crimes and offering over 51 billion rials
(about $1.7 million) in financial assistance.
End Of part 1
10
STEEL NEWS LETTER
Mobarakeh
All Provinces Benefit from Activities of
D
License Holder:
Esfahan’s Mobarakeh Steel co.
Managing Director:
Mohammad Nazemi Harandi
Editor:
Ahmad Najjar
Editorid Dept:
Tel:00983133327327
Fax: 00983133327328
email:[email protected]
website:www.msc.ir
Printed at Iran chap co.
NEWS
Economy Minister:
Tumbling oil prices have
opened up an opportunity
for Iran
Economy Minister Ali Tayyebnia has said that
government is trying to turn the threat posed
by falling oil prices into an opportunity for the
country.
The Iranian economy minister has dismissed
reports that the government is to raise taxes to
make up for its depleting finances, saying that the
Cabinet is after a justice-based tax system, not
levying more taxes.
On January 16, the Iranian Labour News Agency
(ILNA) quoted Ali Tayyebnia as saying that
the government has no plans to raise taxes. The
following is the translation of what the minister
told ILNA in the central city of Qom where he met
with sources of emulation and Shiite clerics:
The minister said that the government is planning
to increase taxes for those individuals who have
so far evaded or avoided to pay taxes, adding
this will go into effect when the tax information
system is complete.
As for main economic concerns, he said that the
government has worked out detailed plans to curb
inflation and create jobs, adding that efforts are
being made to regulate monetary and financial
resources, and control the country’s monetary
base.
Tayyebnia further said that to boost employment,
the government is seeking to speed up economic
expansion in the first place. He said when
production is raised the stage is set for productive
employment.
Secondly, the country needs to opt for production
methods which can create more jobs for the youth,
he stressed.
Asked about the Cabinet’s strategies to cope with
sliding crude prices, he said that the government
seeks to turn the drop in prices to an opportunity
to seriously implement resistance-based
economy and help the country cut its dependence
on oil revenues.He went on to say that the
government has done proper planning to provide
the country’s budget and foreign exchange needs
and supply intermediate goods for the production
sector. iran front page
r. Bahram Sobhani, the
CEO of Mobarakeh Steel
Company and head of Iran’s
Steel Producers Association, attended
a live telecast “Zenderud” and
answered the questions posed by the
public.
Regarding the history of Mobarakeh
Steel Company, he said, “Construction
of Mobarakeh Steel Company started
in the early ‘80s, when the Iran-Iraq
war started, and by the early ‘90s
some of its production lines were
operational. All the lines had been
launched by 1993.”
He said the initial production capacity
of Mobarakeh Steel Company was 2.5
million tons of liquid steel, with hot
and cold plates being the final product.
He went on to say, “Many
development projects have been
implemented inside and outside
the company, during the years the
company has been operational. As
we are now celebrating the 21st
anniversary of the company, 700,000
tons of steel is manufactured in Saba
Steel Complex, and 1.5 million tons of
steel is produced in Hormozgan Steel
Company.
“Mobarakeh Steel Company and its
subgroups manufacture 7.5 million
tons of steel. In other words, the
company accounts for some 50% of
the country’s total steel production.
On the back of efforts by staff
and management at Mobarakeh
Steel Company and other steel
manufacturers in the country, we hope
this year’s steel production will reach
16 million tons.”
Dr. Sobhani said that the total amount
of steel manufactured in the world
stands at 1.6 billion tons, adding,
“China’s share of global production
is 780 million tons. China is followed
by Japan, the Europe Union, the US,
Russia and Ukraine whose production
ranges between 100 and 130 million
tons.”
The CEO of Mobarakeh Steel
Company underlined the importance
of non-oil exports in the Iranian
economy and said, “Last year
Mobarakeh
Steel
Company
exported more than 1 million tons
of its products. Due to the growing
importance of exports, this year we
seek to export 1.5 million tons of
our products to European markets
and those of the Persian Gulf and
Southeast Asia.”
In response to a question on how
Mobarakeh
Steel
Company
provides the water it needs, he said,
“Unfortunately, there are rumors
that Mobarakeh Steel Company is
getting all the water it needs from
Zayanderud; such reports are wrong,
Mobarakeh Steel Company only
consumes 1 percent of Zayanderud’s
water.
“The best proof to substantiate what I
said is the meters installed on output
pipes, source pipes, and pumps that
take water from Zayanderud. If claims
that Mobarakeh gets all the water it
needs from Zayanderud were true,
the river would have dried out by now
and Mobarakeh Steel Company would
have been forced to shut shop.”
He added, “When Mobarakeh Steel
Company was under construction, a
contract was signed with the Ministry
of Energy to allocate 40 million cubic
meters of water from Zayanderud for
production of 4.2 million tons of steel.
Fortunately, this never happened.
Although 5.5 million tons of steel is
manufactured, not only Mobarakeh
Steel does not consume that amount of
water, but it has reduced the amount of
water it uses by refining and recycling
water in the production cycle, and
through implementation of various
projects.
“This reduction in water consumption
is because water is refined and
recycled several times in the
production cycle. Only the water
that is converted to steam during
the production is irreversible. This
approach has become a model for
other industries too.”
In response to a question as to
what measures have been taken by
Mobarakeh Steel Company to prevent
air pollution, the head of Iran’s Steel
Producers Association said, “On the
back of excellent advances that have
been made in construction of filtration
and dusting facilities in the world,
Mobarakeh Steel company is also
required to use modern equipment.
It can no longer be said that the steel
industry is a polluting industry.
“The companies try to comply
with international standards by
installing and using modern systems.
Mobarakeh Steel Company has
invested some 200 billion tomans
[$66.5 million] to constantly monitor
its water, soil, and air pollution
levels through management of the
production process. The pollution
caused by Mobarakeh Steel Company
has always been under control
and below international levels. In
general, everything measures up to
international standards. ”
He went on to say, “We should keep
in mind that Japan, whose size is
one-fifth of Iran, manufactures 130
million tons of steel, while, Iran only
manufactures 15 tons of steel. In other
words, if steel manufacturing was
as polluting as it is believed to be, no
place in Japan would have been safe
for living.”
The CEO of Mobarakeh Steel
Company underlined that, Mobarakeh
Steel Company and Isfahan Steel are
in fact national plants, and said, “The
iron ore Mobarakeh Steel Company
needs is supplied by Yazd, Kerman
and Khorasan. So a major part of
Mobarakeh’s production should be
allocated to these provinces. However,
a major part of production costs go to
energy which comes from elsewhere.
So you can say that the revenues of
Mobarakeh are distributed throughout
the country.
“In fact, Mobarakeh Steel Company
has invested in iron ore mining
in Sangan, near the border with
Afghanistan. In addition, more than
30,000 billion tomans has been
invested in Hormozgan. And two major
projects in Sepiddasht in Chaharmahal
Bakhtiari have been launched. These
are proof that Mobarakeh Steel
Company’s revenues are distributed
and all the country is somehow
benefiting from the operations of
Mobarakeh Steel Company.”
In response to a question as to whether
Sepahan Football Club belongs to
Mobarakeh Steel, Dr. Sobhani said,
“Sepahan FC belongs to Mobarakeh
Steel, and the company is the sole
sponsor and supporter of Sepahan FC,
and all the costs and facilities this club
requires are provided by Mobarakeh
Steel Company.”
He concluded that as part of its social
responsibilities, Mobarakeh Steel
has taken over the construction of
Naghsh-e-Jahan Stadium, which is
a national project. In light of the fact
that not enough budget was allocated
to this project in the past 20 years,
agreements were signed between
provincial officials and Mobarakeh
Steel Company on completion of the
project by the latter.”
34 billion rials saved in construction of
Mobarakeh Steel Company’s pelletizing plant
The head of Mobarakeh Steel
Company’s pelletizing plant said,
“Application of a new method for
long-term periodical maintenance
of the pelletizing plant coupled
with heating rather than cooling
the pelletizing furnace in the
course of quarterly periodical
maintenances, has eliminated the
need for repairs of the furnace
in this plant. Consequently
Mobarakeh Steel Company has
saved 34 billion rials in periodical
maintenance costs.
Hamzeh Ali Jilan further said,
“Application of this method
has made it possible to avoid
unnecessary repairs of the furnace
refractory parts, reduce the heating
and cooling time to 42 hours, and
reduce the timing of repairs to
24 hours. The plant’s output also
increases to 20 tons per 24 hours.”
The temperature required for
pelletizing in furnace is 1,300ºC,
he said, adding that previously
for the long-term periodical
maintenance of the pelletizing
plant it was necessary to reduce
the furnace temperature to ambient
temperature.
He went on to say, “Mobarakeh
Steel Company would have to bear
high costs due to the contraction
of refractory materials and the
subsequent
thermal
shocks
that would lead to undesired
destruction, prompting mandatory
repairs of the refractory walls and
burner ports.”
In this regard, Mohsen Zamani,
the head of the refractory parts
maintenance unit, said: “Avoiding
the cooling of refractory parts
during periodical maintenance
reduces
heat
loss
which
subsequently leads to a reduction
in the consumption of energy and
refractory materials, a reduction
in the man-hours required for
replacement of other parts during
the shutdown, and a reduction
in the repair costs of refractory
materials.
The
man-hours
needed for long-term periodical
maintenance is about 6,000. The
average drops to about 1000 manhours through several phases of
short-term periodical repairs. The
decreasing trend in man-hour
requirement continues.”
The
company’s
newsletter
quoted Reza Ismailpour, the
head of the pelletizing plant, as
saying that since 2012 heated
shutdown of the furnace has
been implemented based on
expert investigations conducted
by the pelletizing plant, the
refractory center unit, and the
iron production site’s technical
office.
According to the plan, during
short-term periodical shutdowns
the furnace temperature is reduced
gradually to 600ºC. It remains
unchanged at this temperature
to prevent thermal shocks
and destruction of the furnace
refractory parts.

Mobarakeh Steel Co. Produces Interstitial

Transcription

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