Metal Watch

World steel production in 1994 totalled 723.3 million tons, according to the International Iron and Steel Institute, Brussels, Belgium. The figure represents a 0.9-percent decrease from the 1993 production total of 730.0 million tons, and an 8-percent decrease from the peak production of 786.0 million tons recorded in 1989.

Among industrialized nations, Western Europe’s production of 165.8 million tons represents a near 5-percent increase in production, taking 1994 output close to the 1989 level of 166.5 million tons. Production of crude steel in the United States in 1994 totalled 88.9 million tons, a 0.2 percent increase over 1993.

Production increases of nearly 11 percent in Poland, more than 8 percent in Hungary and more than 5 percent in Romania "clearly indicate that the economies of Central Europe seem to have turned the corner," according to IISI. These figures represent a "stark contrast" to further decreases of more than 16 percent in Russia, 26 percent in Ukraine and more than 34 percent in Kazakhstan.

The People’s Republic of China produced 91.5 million tons of crude steel in 1994, overtaking the U.S. to become the world’s second largest steel producer after Japan, which registered 98.3 million tons.

PLATINUM, GOLD TREND UPWARD

Both gold and platinum are expected to enjoy high prices in 1995, according to analysts with Smith Barney, New York. Platinum prices may move higher than $430 a troy ounce, due to demand from the automotive industries in the U.S. and Europe, as well as jewelry demand in countries such as Japan. Demand from the Far East may allow gold prices to rise as high as $400 an ounce in 1995, as the metal is experiencing the latter stages of an 18-month correction, the analysts say.

OHIO MILL PLANS IMPROVEMENTS

WCI Steel Inc., Warren, Ohio, plans to spend $39 million on improvements at its hot strip mill.

WCI officals say the improvements are important to the company’s survival as the flat-rolled steel market becomes more crowded. "It will help us be more competitive in every market we’re in," according to John Scheessele, president and chief executive officer at WCI.

The modernization is aimed at reducing variations in gauge or thickness of steel strip and at improving the overall accuracy of shape and flatness.

PILOT PROJECT RECYCLES MILL WASTE

The U.S. Department of Energy and the American Iron and Steel Institute have completed a $7 million pilot project to recycle steel plant by-products into pig iron.

The Waste Oxide Recycling by Smelting program is aimed at recovering the 3 million tons of blast furnace and basic oxygen furnace dusts and one half million tons of rolling mill sludge generated by the steel industry each year.

"Smelting is an ideal way to accomplish this because the process is completely enclosed, so the waste oxides can be recovered in an environmentally-friendly manner," according to AISI. "Increasing landfill costs greatly favor the economics for smelting these iron-rich materials to produce hot metal and reduce disposal costs. In addition, widespread recycling of steel plant wastes could save 10 trillion Btu’s of energy per year."

Beginning last summer, researchers conducted trials on the new smelting process at the Waste Oxide Recycling pilot plant near Pittsburgh.

Project directors determined in December that no further trials were required and concluded the project two months ahead of schedule.

"We can now close out the pilot operation and proceed with a feasibility study to determine whether a full-scale demonstration plant is commercially viable," according to Brian Marsden, chairman of the AISI Waste Oxide Recycling Project Management Board. Marsden is also chairman and chief executive officer of Acme Metals Inc.

ALUMINUM CALLED "DYNAMIC" IN '95

The 1994 aluminum market will be reviewed as one of "rapidly increasing prices, primary curtailments, plant closings, long lead times and a general bullying of the supply side by increased demand for aluminum products in most major U.S. markets," according to William Zartman, North American field sales manager for Norandal USA, Inc.

"Aluminum prices...continue to rise and are expected to remain at current levels and could trend higher throughout 1995," said Zartman in a year-end review prepared for the National Association of Aluminum Distributors. "Aluminum inventories are decreasing on the primary side, and this is normally associated with increases in pricing."

The outlook, he said, is optimistic. "However, if current trends in pricing continue, the threat of substitution materials becomes greater, as is evidenced by recent statements from the can companies which suggest a change of some proportion from aluminum to steel."

In short, Zartman said, 1995 will be "another dynamic year in not only pricing, but also in supply and demand. This will be true not only in the U.S. but also in Europe and Japan."

SHIPMENTS LAST YEAR EXCEEL 1993 LEVELS

Shipments of steel mill products by U.S. mills during the first 11 months of 1994 were up 7.2 percent over the same period of 1993, and at their highest level since 1979, according to the American Iron and Steel Institute.

Shipments from January through November of 1994 totalled 86.9 million net tons, up 7.2 percent from 81.02 million tons in the first 11 months of 1993.

The 1994 figure represents the highest 11-month toal since 1979, when the industry’s first 11 month’s shipments were 93.58 million tons.

A year-to-year comparison of the first 11 months’ shipments shows the following changes within major market classifications: service centers and distributors, up 0.8 percent; automotive, up 16.9 percent; construction and contractors’ products, up 12.0 percent; oil and gas, up 2.7 percent; machinery, industrial equipment and tools, up 15.4 percent; appliances, utensils and cutlery, up 5.7 percent; containers, packaging and shipping materials, down 2.9 percent; and electrical equipment, up 2.0 percent.

USBM SEEKS NEW DEMAG PROCESS

Scientists at the U.S Bureau of Mines are researching a safer, cleaner alternative to removing magnesium from aluminum scrap prior to recycling the material.

Currently, scrap processors must "demag" aluminum via a process that uses chlorine gas and produces chlorine-contaminated wastes. But the USBM’s scavenger technique is based on a process originally developed to recover lithium from aluminum-lithium scrap.

"We suspected that the same process could work with aluminum magnesium alloys because magnesium and lithium exhibit similar chemical behavior," according to Bill Riley, scientist with USBM.

The scavenger process takes advantage of the fact that lithium titanate has tunnels or open spaces in its structure which can accommodate ions of a specific size and charge.

"It works basically like a battery," says Riley. Melted aluminum-magnesium scrap serves as one electrode, and lithium titanate as the other. Magnesium ions flow from the scrap to the scavenger compound. "We take the charged lithium titantate and electrodeposit the magnesium for recycling. The lithium titanate is then ready to be used again."

The USBM research has been funded by the Environmental Protection Agency’s Environmental Technology Initiative. "The studies we’re doing this year should give us the process parameters and cost data we need to work with industry on a larger-scale demonstration."