European Refractory Markets. IA. Dr. Jürgen Puhl
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1 European Refractory Markets Dr. Jürgen Puhl Managing Director Alumina Products - Marketing/R&D IA. Dr. Jürgen Puhl
2 Contents Current and future steel demand and impact on the refractory market Challenges - New markets for refractories and areas of demand Comparison of different types of refractory materials and their markets 2 21 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
3 Refractories Indispensable for Basic Industries Refractory products High-temperature production processes Steel production Bricks Mixes Linings Refractory 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 Base materials are for instance magnesite and dolomite (melting point of fused magnesia >2,800 C) Cement / lime production Glass production Magnesite Dolomite Nonferrous metals production Definition refractories: ISO 836 / DIN 51060: refractoriness >1,500 C 3 21 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
4 Refractory Industry in Europe Facts and Figures 2010 (Source PRE 2011) About 24,000 employees Approx. 5 million tonnes of refractories produced (PRE: 4.17) Trend: Overcapacity in production 3.77 billion turnover 35-45% Production for export (2009) 15-20% Consumption from imports (mainly from China) (2009) 4 21 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
5 Crude Steel Production EU27 250,000 Crude Steel Pro oduction in 000.m mt 200, , ,000 50,000 0 Source: World Steel Assoziation f) f) MEPS World Steel Outlook Quarter 4/ Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
6 EU Steel Market Source: Q Report from EUROFER`s Economic Committee 6 21 Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
7 Inde ex 2008 = 100 Refractory Market Steel Western Europe Source: RHI AG Clear correlation between refractories market and steel production About 60% of refractories are used in the steel industry (source PRE 2011: members only; based on total 3.7 million tonnes). World refractory demand (.000s tonnes) Region (% annual growth) (% annual growth) North America 3,305 2,445 3, Western Europe 3,550 2,725 3, Asia Pacific 13,350 21,340 27, Other Regions 5,460 4,990 6, TOTAL 25,665 31,500 40, Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012 Source: The Fredonia Group Inc., M. Deneen, 2011)
8 Total Production of Refractories in Europe Total production/trend: Unshaped (members) Thousa and tonnes Total production % of unshaped production Trend Total Production (members) Trend production unshaped (members) Source: PRE Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
9 Overview of Refractories Production in Europe 3000 Overview of product categories 2010 Total: million tonnes tonnes Total: million tonnes Unclassified Pre-cast Other products Insulating products Basic products High Alumina Fireclay Shaped Products Unshaped Products Source: PRE Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
10 Mean Specific Refractory Consumption - Europe umption efractory cons onne steel verage spec. r kg/t Av Japan World total Germany USA Year Furnace/Plant Pig Iron Steel Mean Specific Consumption 1) kg refractories /tonne Product Share Shaped Unshaped approx. % approx. % Blast Furnace (with tapholes) 0, Hot Blast Stove 0, Transport Vessels 0, Oxygen Converter 1, Electric Arc Furnace 5, AOD-Converter 6, Steel Treatment Ladles 3, RH and DH Units 1, Continuous Casting (with 1, tundish) 1) Specific Consumption is depending on furnaces used for particular production line. Average specific refractory consumption in Europe: kg/tonne steel 4-5 kg/tonne glass kg/tonne cement clinker (VDZ 2011: 0.65kg/tonne clinker in Germany) 5-10 kg/tonne nonferrous metal Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
11 Challenges - New Markets and Area of Demand Restricted growth in Europe compared to the emerging markets China/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 quality raw materials. Uniform raw material policy in EU decrease the dependency on imported raw materials. Development of synthetic fused and sintered raw materials to improve the properties of standard products. Production of fused synthetic raw material Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
12 Raw Material Prices for Refractory Industry 390 Index development of commodity prices for the refractoryindustry = 100 Index Source: VDFFI andalusite bauxite white fused alumina brown fused alumina silicon carbide fused magnesia sintered magnesia zircon tabular alumina cement average q2007 2q2007 3q2007 4q2007 1q2008 2q2008 3q2008 4q2008 1q2009 2q2009 3q2009 4q2009 1q2010 2q2010 3q2010 4q2010 1q2011 2q2011 3q2011 4q Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
13 Recycling raw material 80% Recycling secondary raw materials problems in quality and processing of secondary raw materials. Refr. Recycl. Refractories Application 20% 35% 18% 27% internal recycling non-refr. appl. product or by-product waste Flow chart of refractories in application Source: UNITECR Proceedings Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
14 Refractories for Steel Industry Comprehensive Products, Services and Solutions Offered Standardized/High-Volume Products Complex Solutions and Services Tailored products and solutions for customers in the steel industry Systems and solutions for complete refractory management (full line service) Bi Bricks and unshaped products e.g. for basic oxygen furnaces, electric arc furnaces and steel casting ladles Full Line Service Regarded as a consumable product due to the comparably short replacement cycles (20 minutes to 2 months) Refractories Machinery & Equipment Engineering & Design Services & Logistics Customer demand is correlated to steel output due to the consumable nature of refractory products in the steel industry Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
15 Customized refractory Products and Solutions - Examples Key industries Cement/ Lime Application examples Kilns Replacement cycle Annually Customized solutions All-inclusive refractory solutions based on the specific requirements of various customers industrial production processes including: Complete lining concepts Glass Glass furnace Up to 10 years Refractory engineering with state-ofthe-art CAD systems Nonferrous Metals Energy- Environment- Chemicals Copper converter Secondary reformer 1 10 years 5 10 years Detailed project documentation including installation instructions Developments of specific, individual refractory solutions in cooperation with research centres Complete installation and lining supervision by experienced engineers Typically longer replacement cycles and higher h customization ti compared to products provided d to steel industry Wide areas of application, project driven demand cycles and perceived as an investment Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
16 Challenges - Areas of Demand Tailor-made solutions for customers with a demand 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 complicated shapes. 1) M. Deneen, Business Economics, Oct Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012 Waste heat boiler
17 Challenges - Areas of Demand Implementation of computerized simulation techniques like fluid dynamics or numerical simulation for product development, product design and lining optimization. New binder systems for bricks and castables. Velocity contour of SEN Cement plant inlet chamber castable field trial MgO-C brick Carbon binding structure Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
18 Challenges - Areas of Demand Improvement of lining techniques (different zones), improved repair techniques. EAF gunning operation New refractory materials for lining because of new process conditions. For instance use of secondary fuels (cement industry) or use of secondary raw materials because of a lack of primary raw materials (for instance primary copper and lead production). Damage of cement clinker cooler Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
19 Challenges - Areas of Demand Environmental restrictions. REACH (for instance environmentally friendly C- binder). CO 2 - and NO x -emissions. Recognizing emission sources. Problem: inevitable CO 2 -emissions from magnesite and dolomite. Providing intelligent refractory solutions: to reduce energy consumption and CO 2 -emissions and optimize metal output and quality. Development of alternative ti production processes to decrease energy consumption during refractory production. Extended R&D activities to ensure technological progress Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
20 Refractory Materials and Their Main Markets Basic, shaped fired 1) C-bonded Steel Cement Glass Non-ferrous Others EEC (+) Basic unshaped 2) (+) (+) Non-basic, shaped fired 1) C-bonded d Non-basic unshaped 2) (+) Non-basic shaped fused cast + 1) Including chemically bonded bricks 2) Mortars and plastics not considered Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
21 How much Refractory Material Was Needed to Make This Car? The car weighs about 1.3 tonnes Approximately 10 kg of refractory bricks and mixes were required to manufacture the steel, glass, aluminium, copper and plastic (upholstery, cables, safety belts) products Dr. Jürgen Puhl/European Refractory Markets/21st IM Congress - March 2012
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