Fused Magnesia Trends. Global Outlook. Asım Bilge MagForum 2016, Vienna Kümaş Manyezit San. A.Ş.

Transcription

1 Fused Magnesia Trends & Global Outlook Asım Bilge MagForum 2016, Vienna Kümaş Manyezit San. A.Ş.

2 Contents Fused Magnesia Global FM Market, Demand and Prices Effects of Global Economy Issues Kümaş FM Production Kümaş FM Products Refractory Grade Electrical Grade Conclusions and Outlook May 2016, Vienna 2

3 Fused Magnesia Fused magnesia (FM) is produced by electric arc melting of magnesite, CCM or DBM in a traditional Higgins furnace or in tilt-type furnace at >2850 C. Furnaces can be operated on both one-step or two-step processes depending on energy costs and supply. Magnesite is used in the one-step and CCM in the two-step process. FM is characterized by very large periclase crystals of more than 1,000μm (compared to μm for DBM) and a density approaching the 3.52 g/cm 3. Product Process Temperature Crystal Size Density ( C) (µm) (g/cm 3 ) CCM <0,5 - DBM ,15 3,42 FM >2850 >800 > 3,48 May 2016, Vienna 3

4 2015 Global Production of FM Estimated global FM production was around 1,2 million tonnes in % 13.60% 84.00% China KÜMAŞ Others May 2016, Vienna 4

5 Cost of Fused Magnesia Production Raw Materials Energy Graphite Electrodes Labor Costs May 2016, Vienna 5

6 FM Prices Average FM Prices (USD/ton FOB China) Prices down by 40% in 5 years FM 97 FM Average FM Prices 2015 (USD/ton FOB China) Source: Asian Metal May 2016, Vienna 6

7 Capacity utilization ratio and exports China FM Export Q1 Comparison (tonnes) Capacity Utilization of China FM Production (%) Q exports up by 14% Capacity usage 23% January February March Q1 Total Source: Asian Metal May 2016, Vienna 7

8 China FM Exports (000t) 2015 exports down by 18% y-o-y FM Exports by Destination 2015 Other Countries 13% Russia 16% India 3% Turkey 3% China FM Exports 2015 Italy 6% Brazil 6% South Korea 11% Netherlands 11% USA 15% Japan 16% Source: Asian Metal May 2016, Vienna 8

9 Steel Production and China s Growth World Crude Steel Production (million tonnes) 16 China GDP Growth (annual %) Q steel output down by 3,6% y-o-y Source: World Steel Association Source: World Bank Statistics May 2016, Vienna 9

10 April May June July August September October November December January February March April Prices ($/t) Inventory (000t) 750 Rebar Prices and Inventories (China) ? prices Inventories Source: Bloomberg May 2016, Vienna 10

11 Higher quality FM demand increased FM producers are trying to find new methods like fluxing FM Trends Increasing use of fused minerals in cement&lime kiln refractories Special fused products for niche applications Magnezit Group plans to increase FM production capacity Companies purchases low priced FM and reducing its capacity May 2016, Vienna 11

12 KÜMAŞ Fused Magnesia May 2016, Vienna 12

13 Kümaş FM Plant t/y FM Production Capacity 4 Arc Furnace with Power of 8 MVA Two-step Production Process Fused Oxychrome and Spinel Products May 2016, Vienna 13

14 Process Flow CCM Arc Fusion Slow Cooling FM May 2016, Vienna 14

15 Fusion Process State-of-the-art production facility CCM is smelted by arc furnaces with full automated system Energy intensive process Specific energy consumption is around kwh/ton Safety issues must be considered May 2016, Vienna 15

16 Optical Sorting Fused ingots contain different grades of fused magnesia. It should be separated before using it. Optical sorters help to separate the materials with high capacity after crushing. With this technology Kümaş guarantees highest quality. May 2016, Vienna 16

17 Refractory Grade FM Kümaş refractory grade FM has low silica content, high lime/silica ratio, with high density. Kümaş FM is essential for high performance magnesiacarbon bricks. These MgO-C bricks are specially used at basic oxygen furnace (BOF) vessels, ladles and electric arc furnace (EAF) slag liners. May 2016, Vienna 17

18 Grades Chemical Composition (% wt) Density Crystal Size SiO 2 CaO Fe 2 O 3 Al 2 O 3 MgO (g/cm 3 ) (µm) KM FM 97,5 0,65 1,35 0,40 0,10 97,50 3, KM FM 97 0,75 1,65 0,50 0,10 97,00 3, KM FM 96,5 1,00 2,00 0,50 0,10 96,50 3, KM FM 96 1,10 2,20 0,60 0,10 96,00 3, KM FM 95C 2,00 2,50 0,70 0,10 94,70 3, SiO 2 CaO Fe 2 O 3 Al 2 O 3 MgO Cr 2 O 3 Density (g/cm 3 ) KM Oxychrome 1,00 1,00 12,00 8,00 58,00 20,00 3,70 May 2016, Vienna 18

19 Electrical Grade FM Kümaş fused magnesia is also used as an electrical insulating material in heating elements (brand name KuRes). Carbon, sulphur and iron oxide are particularly undesirable. Kümaş has the perfect raw magnesite for the production of electrical grade FM with very low iron oxide content for high temperature applications. May 2016, Vienna 19

20 Grades MgO Fe 2 O 3 Carbon Temp. Tap Density Surface Load % wt % wt ppm C g/cm 3 W/cm 2 KuRes H 11 97,00 0, ,42 9 KuRes H 01 96,50 0, ,42 7 KuRes M 21 96,00 0, ,42 6 KuRes M 02 95,65 0, ,42 5 KuRes L 31 95,30 0, ,42 4 KuRes L 03 95,00 0, ,42 1 May 2016, Vienna 20

21 Advantages of Kümaş Fused Magnesia High purity cryptocrystalline magnesite for CCM, Two-step process, Larger crystal size, Low iron oxide and impurities, No fluxing agents, Higher quality provides higher performance for refractory applications. May 2016, Vienna 21

22 Conclusions & Outlook Fierce price competition of Chinese FM products No expectations of a recovery in near future Demand will continue to increase for higher quality The future of FM is connected to the future of global steel industry May 2016, Vienna 22

23 Thank You May 2016, Vienna 23