European Refractory Markets - Industrial Minerals

$Page 1: European Refractory Markets - Industrial Minerals$
European Refractory MarketsDr Jürgen Puhl Managing Director Alumina Products Marketing/R&DDr. Jürgen Puhl – Managing Director Alumina Products - Marketing/R&D

IA. • Dr. Jürgen Puhl • 13.03.2012

Contents

Current and future steel demand and impact on theCurrent and future steel demand and impact on therefractory market

Challenges - New markets for refractories andareas of demand

Comparison of different types of refractorymaterials and their markets

212 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012

Refractories – Indispensable for Basic IndustriesRefractory products High-temperature production

processes

Steel production

Bricks Mixes LiningsRefractory products are used in all high-temperature industrial processes (>1,200°C) since they protect the production units/furnaces against thermal(and also mechanical and chemical) stress

Cement / lime production

g

Base materials are for instance magnesite and dolomite (melting point of fused magnesia >2,800°C)

Glass production

Magnesite Dolomite

Nonferrous metals production

21

Definition refractories: ISO 836 / DIN 51060: refractoriness >1,500 °C


Refractory Industry in Europe Facts and Figures 2010 (Source PRE 2011)

About 24,000 employeesApprox. 5 million tonnes of refractories produced (PRE: 4.17)Trend: Overcapacity in production€3.77 billion turnover€3.77 billion turnover

35-45% Production for export (2009)15-20% Consumption from imports (mainly from China) (2009)


Crude Steel Production – EU27250,000

n in

150,000

200,000

oduc

tion

mt

100,000

150,000

Stee

l Pro

000.

m

50,000

Cru

de S

Source: World Steel Assoziation

02000 2002 2004 2006 2008 2010 2012 f)


f) MEPS – World Steel Outlook Quarter 4/2011

EU Steel Market

Source: Q1-2012 Report from EUROFER`s Economic Committee


Refractory Market Steel – Western Europe

80.0100.0120.0

100 About 60% of refractories are

d i th t l i d t

20.040.060.0

ex 2

008

= 1 used in the steel industry

(source PRE 2011: members only; based on total 3.7 million tonnes).

0.02008 2009 2010 2011 2012 2013

Inde Source: RHI AG

World refractory demand (.000s tonnes)

Region 2004 2009 2014 2004-2009(% annual growth)

2009-2014(% annual growth)

North America 3,305 2,445 3,150 -5.8 5.2

W t E 3 550 2 725 3 240 5 2 3 5

Clear correlationbetween refractories

Western Europe 3,550 2,725 3,240 -5.2 3.5

Asia Pacific 13,350 21,340 27,850 9.8 5.5

Other Regions 5,460 4,990 6,460 -1.8 5.3

TOTAL 25 665 31 500 40 700 4 2 5 3

market and steelproduction


TOTAL 25,665 31,500 40,700 4.2 5.3Source: The Fredonia Group Inc., M. Deneen, 2011)

Total Production of Refractories in Europe

100 06 000

Total production/Trend: Unshaped (members)

4.3124 021 4.206

4.5984.854

4.6184.171

80.0

90.0

100.0

5.000

6.000

Trend Total Production (members)

Total production

4.0213.520

4.171

50.0

60.0

70.0

3.000

4.000

and

tonn

es

(members)

% of unshaped production

32.0 33.037.8 39.8 42.1 42.5 42.8 43.8

20.0

30.0

40.0

1 000

2.000Thou

sa

Trend production unshaped (members)

% of unshaped production

Source: PRE 2011

0.0

10.0

0.000

1.000

2003 2004 2005 2006 2007 2008 2009 2010


Overview of Refractories Production in Europe

3000

Overview of product categories 2010

21343

2500

3000

Total: 2.342 million tonnes


1343

78

26175 3090

1500

2000

0 to

nnes

Unclassified

Pre-cast

Other products

Insulating products


346

1343

922

500

1000

1000 Insulating products

Basic products

High Alumina

Fireclay

361 273

346312

0

500

Shaped Products Unshaped Products Source: PRE 2011


Shaped Products Unshaped Products Source: PRE 2011

Mean Specific Refractory Consumption - Europe

50

60

umpt

ion

World total

G

Furnace/Plant Mean Specific Consumption 1)

Product Share Shaped Unshaped

kg refractories/tonne

approx. % approx. %

20

30

40

efra

ctor

yco

nson

ne s

teel

Germany

USA

/tonne

Pig

Iron

Blast Furnace (with tapholes) 0,7 15 85

Hot Blast Stove 0,3 95 5Transport Vessels 0,5 70 30Oxygen Converter 1 2 75 25

0

10

20

vera

gesp

ec.

rkg

/t

Japan

Stee

l

Oxygen Converter 1,2 75 25Electric Arc Furnace 5,1 30 70AOD-Converter 6,2 92 8Steel Treatment Ladles 3,3 90 10RH and DH Units 1,3 50 50Continuous Casting (with 1,2 10 90

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010Av

Year

Average specific refractory consumption in Europe:

tundish)

1) Specific Consumption is depending on furnaces used for particular production line.

10-12 kg/tonne steel4-5 kg/tonne glass0.6-0.8 kg/tonne cement clinker (VDZ 2011: 0.65kg/tonne clinker in Germany)


g ( g y)5-10 kg/tonne nonferrous metal

Challenges - New Markets and Area of DemandRestricted growth in Europe compared to the emerging marketsChina/India/Brazil with a trend for lower refractory consumption per tonne/product in BRIC countries. Extension of sales into emerging markets.

Increasing raw material costs and decreased amounts of highest qualityraw materials.

Uniform raw material policy in EU –decrease the dependency on imported raw materials. Production

Development of synthetic fused and sintered rawmaterials to improve the properties of standard products.

of fusedsyntheticrawmaterial

21

materials to improve the properties of standard products.


Raw Material Prices for Refractory Industry

390

Index development of commodity prices for the refractory-industry

290

340

390

240

290

= 10

0

Source: VDFFI

140

190

Inde

x 20

00

90

andalusite bauxite white fused alumina

brown fused

alumina

silicon carbide

fused magnesia

sintered magnesia

zircon tabular alumina

cement average


2000 2001 2002 2003 2004 2005 2006 1q2007 2q2007 3q2007 4q2007 1q2008 2q20083q2008 4q2008 1q2009 2q2009 3q2009 4q2009 1q2010 2q2010 3q2010 4q2010 1q2011 2q2011 3q2011 4q2011

Recycling

rawt i l

Recycling – secondary rawmaterials – problems in quality and

material

80%processing of secondary rawmaterials.

internal recyclingnon refr appl

RefractoriesApplication

Refr.Recycl.

non-refr. appl.20% 35% 18% 27%

pp

product orby product w

aste Flow chart of refractories in application

Source: UNITECR Proceedings 2003


by-product w

Refractories for Steel Industry – Comprehensive Products, Services and Solutions Offered

Tailored products and solutions

Standardized/High-Volume Products Complex Solutions and Services

pfor customers in the steel industry

Systems and solutions for complete refractory management

B i k d h d d t f b i

(full line service)

Bricks and unshaped products e.g. for basic oxygen furnaces, electric arc furnaces and steel casting ladles

Regarded as a consumable product due to the comparably short replacement cycles (20 minutes to 2 months)

Engineering &Design

Services &Logistics

Machinery & Equipment

Full Line Service

Refractories

(20 minutes to 2 months)

Customer demand is correlated to steel output due to the consumable nature of refractory products in the


steel industry

Customized refractory Products and Solutions - Examples

All-inclusive refractory solutions based th ifi i t f iC /

Keyindustries

Applicationexamples

Replacementcycle

Customized solutions

on the specific requirements of various customers’ industrial production processes including:

Complete lining concepts

Cement/ Lime

Kilns Annually

Refractory engineering with state-of-the-art CAD systems

Detailed project documentation including installation instructions

Glass Glass furnace Up to 10 years

including installation instructions

Developments of specific, individual refractory solutions in cooperation with research centres

NonferrousMetals

Copper converter

Energy-

1 – 10 years

Complete installation and lining supervision by experienced engineers

EnergyEnvironment-Chemicals

Secondary reformer

T i ll l l t l d hi h t i ti d t d t id d t t l i d t

5 – 10 years


Typically longer replacement cycles and higher customization compared to products provided to steel industry Wide areas of application, project driven demand cycles and perceived as an investment

Challenges - Areas of Demand

Tailor-made solutions for customers with ademand for the highest quality productsdemand for the highest quality products.

Increased use of unshaped products (global ratio: shaped/unshaped = 56:44 1) ). Developments concerning: fast heating up and drying; properties close to bricks.

Tundish lining – fast heating up

Precasts to realize large and complicatedshapes.

1) M. Deneen, Business Economics, Oct. 2010

2116 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012Waste heat boiler

Challenges - Areas of DemandImplementation of computerized simulation techniqueslike fluid dynamics or numerical simulation for productdevelopment, product design and lining optimization.

New binder systems for bricks and castables.

Velocity contour of SEN

MgO-C brick – Carbon binding structureCement plant – inlet chamber –


MgO C brick Carbon binding structureCement plant inlet chambercastable field trial

Challenges - Areas of Demand

Improvement of lining techniques (different zones), improved repair techniques.

New refractory materials for lining because of new

EAF gunning operation

New refractory materials for lining because of newprocess conditions. For instance use of secondary fuels(cement industry) or use of secondary raw materialsbecause of a lack of primary raw materials(for instance primary copper and lead production).

Damage of cement


Damage of cementclinker cooler

Challenges - Areas of DemandEnvironmental restrictions. REACH (for instance environmentally friendly C-binder). CO2- and NOx-emissions. Recognizing emission sources. Problem: inevitable CO2-emissions from magnesite and dolomite.

Providing intelligent refractory solutions: to reduce energy consumption and CO2-emissions and optimize metal output and quality. D l t f lt ti d ti t dDevelopment of alternative production processes to decrease energyconsumption during refractory production.

Extended R&D activities to ensure technological progress.


Refractory Materials and Their Main Markets

Steel Cement Glass Non-ferrous OthersEEC

Basic, shapedfired 1)

C-bonded

+ + + + + + + + + + + (+)

Basic unshaped 2) + + + (+) (+)

Non-basic, shapedfired 1)

C b d d

+ + ++ + + + + + + + +

C-bonded

Non-basic unshaped 2) + + + + (+) + + +

Non-basic shaped +fused cast +

1) Including chemically bonded bricks2) Mortars and plastics not considered


Mortars and plastics not considered

How much Refractory Material Was Needed toMake This Car?

The car weighs about 1.3 tonnes

Approximately 10 kg of refractory bricks and mixes wererequired to manufacture the steel, glass, aluminium, copperand plastic (upholstery, cables, safety belts) products.


Documents

European Refractory Markets - Industrial Minerals