Challenges and limiting factors for the Recycling of steel scrap in Europe

Challenges and limiting factors for the Recycling of steel scrap in Europe International Workshop on Technospheric Mining 2 nd October 2015 Philip Bundschuh

Table of Content Scrap availability trading and consumption of steel scrap Technological boundaries in the steel industry for charging scrap Processes of steelmaking Consumption of energy and CO 2 - emissions Scrap qualities Challenge for sustainable scrap addition in Europe

Scrap availability Main Global Scrap Trades between Extra Regional Markets in 2014 1.2 2.9 NAFTA 0.2 0.6 2.1 EU 27 2.3 10.9 Middle East and Africa 0.1 Turkey CIS 2.7 China 0.9 0.4 Other Asia (excl. China) 0.5 3.9 Other America 0.1 7.5 1.9 Global scrap trade 2014: total exports 92.8 million tons, extra regional exports 54.5 million tons NAFTA and EU-28 countries are net exporters of steel scrap NAFTA exports mainly to Asia (South Korea and Taiwan) and EU-28 mainly to Turkey Source: World Steel in Figures 2015, World Steel Association Recycling of steel scrap in Europe Bundschuh 4

Net Scrap Imports in Markets in 2014 Scrap availability NAFTA -17.1 (-11.05 %) EU 27-13.4 (-10.69 %) Turkey 17.3 (79.04%) CIS -4.3 (-6.47 %) China 4.4 (0.65 %) Net Importer Net Exporter Other America -1.1 (-2.02 %) Africa and Middle East 0.2 (0.24 %) Other Asia (excl. China) 17.2 (6.75 %) Oceania -2.7 (-3.26 %) million tons scrap (% ratio of steel production) Industrialized markets are the major net scrap exporters Scrap export of EU 28 and NAFTA corresponds to > 10 % of finished steel products Turkey has strong dependency on scrap import scrap amount is 79 % of finished steel products Lack of scrap in Asia Export ban on scrap in China, India and others Source: World Steel in Figures 2015, World Steel Association; World Steel in Figures 2014, World Steel Association Recycling of steel scrap in Europe Bundschuh 5

Scrap availability Crude Steel Production and Scrap Consumption in Europe in 2014 200 180 169,3 Crude Steel Production Scap consumption 100 90 Crude Steel Production (M.tons) Scap consumption (M.tons) 160 140 120 100 80 60 40 20 53,9 91,3 44,4 42,9 19,1 83,0 23,7 19,7 47,9 7,7 16,1 79,3 14,4 11,4 34,7 7,9 2,7 80 70 60 50 40 30 20 10 Scrap Ratio in Crude Steel (%) 0 0 EU-28 Germany Italy France Spain Austria Scrap is the major ferrous charge for crude steel production in EU 28 54 % of crude steel EU-27 scrap export of 13.4 million tons corresponds to 14.7 % of scrap consumption Source: EU-Scrap Statitstics 2012-2013, EFR; World Steel in Figures 2014, World Steel Association Recycling of steel scrap in Europe Bundschuh 6

Processes of steelmaking Process Routes for Production of Crude Steel Iron Ore Lump Ore Iron Ore Fine Feed Lump, Fine Ore Lump Ore Fine Ore Cokemaking + Agglomeration (Sintering/Pelletizine) Primary Metallurgy Ironmaking Coal Coke Blast Furnace Natural Gas, Oil and Coal Oxygen Sinter Pellets Blast Oxygen Hot Metal Scrap Coal Oxygen Oxygen Pellets Hot Metal Scrap Pellets Routes for Smelting Reduction and Direct Reduction Natural Gas, Oil Smelting Reduction (COREX) Shaft Furnace Coal Rotary Kiln Sponge Iron Scrap Direct Reduction Fluidized Bed Natural Gas Scrap Crude Steel production BOF BOF Electric Arc Furnace Source: Stahlfibel, Verein Deutscher Eisenhüttenleute Recycling of steel scrap in Europe Bundschuh 8

Processes of steelmaking Integrated Route (Blast furnace + LD) for Hot Rolled Coils Coal Coking Plant Scrap Typical work size > 3 Mtons per year Biggest work: 17 Mtons per year Pellets Blast Furnace LD Converter Ladle Furnace Continuous Casting Hot Rolling Hot Rolled Coil (HRC) Sinter Fine Ore Sinter Plant Vacuum Degassing Energy Demand per Process Step GJ/t HRC BF + Coke Plant + Sinter Plant 15,0 22,0 LD Converter + Secondary Metallurgy 0,3 1,0 Slab Casting 0,1 0,3 Hot Rolling of Coils 1,6 3,6 Total 17,0 26,9 Recycling of steel scrap in Europe Bundschuh 9

Processes of steelmaking Mini Mill Route (Scrap + EAF) for Hot Rolled Coils Scarp Substitutes DRI/HBI Pig Iron Typical work size 0.5 2.0 Mtons per year Scrap EAF Ladle Furnace Thin Casting with Direct Rolling Hot Rolled Coil (HRC) Vacuum Degassing Energy Demand per Process Step EAF + Secondary Metallurgy Thin Slab Casting + Direct Hot Rolling Total GJ/t HRC 4,0 6,7 0,6 0,9 4,6 7,6 Recycling of steel scrap in Europe Bundschuh 10

Consumption of energy and CO 2 -emissions Comparison of Energy Demands of Routes per ton liquid steel Theoretical minimum values (per ton of iron) Best practical values achieved Top Performer (per ton of iron) Integrated Route Iron Ore - Blast furnace - LD Reduction: + 6,7 GJ Heating + Melting : + 1,3 GJ Mini-Mill Route Scrap-EAF Heating + Melting: 1,3 GJ 8,0 GJ (2222 kwh) 1,3 GJ (361 kwh) 17,0 GJ (4720 kwh) 4,6 GJ (1270 kwh) Main reasons for the higher practical values: Energy demand for production of reducing agent from fossil fuels (coke production, gas reforming) Heat losses due to cooling and re-heating (e.g. coke, sinter, slabs) Energy efficiency for energy transfer and conversion Recycling of steel scrap in Europe Bundschuh 11

CO 2 -Emission ( kg CO 2 / t liquid steel) CO 2 Emission (t CO 2 /t Liquid Steel) Consumption of energy and CO 2 -emissions CO 2 Emission for Steel Production 2750 2500 2250 2000 1750 1500 1250 Total 1929 257 Indirekt Direkt 1000 750 1672 Total 330 500 250 0 BF Route + BOF 256 74 EAF-Scrap Indirect CO 2 emissions: 0.6 kg CO 2 /kwh 0.3 kg CO 2 /Nm³ O 2 162 kg CO 2 /t Pellet No credits (eg. for slags) Recycling of steel scrap in Europe Bundschuh 12

kg/ton Steel Consumption of energy and CO 2 -emissions Energy consumption and CO 2 emission for multi recycling-approach of steel Coke making Sinter plant 18,0 16,0 Total Energy Consumption Blast furnace LD plant Electric steel mill Iteration n-1 times GJ/Ton Finiished Steel 14,0 12,0 10,0 8,0 6,0 Hot rolling plant Hot rolling plant 4,0 2,0 Further processing Further processing 0,0 1 2 3 4 5 6 7 8 9 10 11 12 Number Life Cycles Usage in finished products and utilization phase 2500,0 2000,0 Direct and In-Direct CO 2 Emissions recovery 1500,0 n: Number of lifecycles 1000,0 500,0 Multi recycling-approach of steel Source: S. Neugebauer et.al., Stahl und Eisen 133 (2013) 7; own data 0,0 1 2 3 4 5 6 7 8 9 10 11 12 Number of Life Cycles Recycling of steel scrap in Europe Bundschuh 13

Scrap utilization Steel production technology based on the charge mix LD OBM KMS N 2 /Ar Twin Shell EAF Jet Process Cold air + O2 O 2 + CaO CH 4, Coal Hot blast 1300 C Energy in hot blast Carbon post combustion CO + ½ O2 CO2 Heat transfer to bath EAF Shaft with shaft without shaft EAF O2 O2 Coal Carbon combustion C + ½ O2 CO Recycling of steel scrap in Europe Bundschuh 14

Scrap utilization European scrap specification Recycling of steel scrap in Europe Bundschuh 15

Scrap utilization Influence of tramp elements Steel grade: Source: H. Preßlinger, 2002 Sum Recycling of steel scrap in Europe Bundschuh 16

Scrap utilization LC-Steels Influence of tramp elements Insertion of tramp elements (mean values) Demand for tramp elements (of materials groups) Mild steel Deep Draw Quality (DDQ) Extra Deep Draw Quality (EDDQ) Shredder- Externalscrap scrap Source: H. Preßlinger, 2002 Ownscrap Pig Iron Recycling of steel scrap in Europe Bundschuh 17

Scrap utilization Steel qualities and mix of charging Trace Elements (%) Charge Mix and Trace Element Level 0,7 0,6 0.45 0,5 0,4 0,3 0.35 0,2 0.25 0.03 0,1 0.15 0 0% 25% 50% 75% 100% 0.7 S235JR S355JR DDQ EDDQ ULC-IF Scrap Ratio 100 % 75 % 50 % 25 % 0 % Hot Metal/DRI Ratio Recycling of steel scrap in Europe Bundschuh 18

Sustainable scrap usage Challenges for sustainable usage of scrap in Europe The aim is to increase the scrap rate for the steel production Source: World Steel Association Legislative and organizational arrangements for the control of scrap exports Scrap export = export of an energy source Export stop of old equipment and old cars for scrapping out of the EU Recycling of steel scrap in Europe Bundschuh 21

Sustainable scrap usage Challenges for sustainable usage of scrap in Europe Stronger cross linkage of the steel industry in the life cycle process of the steel Improving recyclability in product design steel industry as a partner of the customers in product design Monitoring of the qualities and quality of the steel in the life cycle Source: World Steel Association Detection and prediction of the resulting steel grades for recycling Recycling of steel scrap in Europe Bundschuh 22

Sustainable scrap usage Challenges for sustainable usage of scrap in Europe Innovations for efficient recycling of scrap Increasing the Scrap rate If HBI and scarp become considerable cheaper than HM one blast furnace could be switched off. Pebble heater Main blower Burner Ore, Coke HBI, Scrap 0,9mt 3,7mt 4,6mt steel Bottom blowing converter Hot blast lance Ore, Coke 2,3mt 4,6mt steel HBI, Scrap 2,3mt Source: G. Wimmer et al. : Jet Process for Highest Scrap and DRI Rates in Converter Steelmaking, 7 th EOSC, 2014 Example: JET Process Recycling of steel scrap in Europe Bundschuh 23

Sustainable scrap usage Innovations for efficient recycling of scrap Integral approach to the material and process development Example: Production of steel grades with higher tramp elements with new casting and rolling composite technologies Continuous Casting Thin slab casting Pre Strip casting Thin Strip casting Challenges for sustainable usage of scrap in Europe Break down stand Pusher f. Continuous f. Equalization f. Finishing stand Finishing stand Finishing stand Shredderscrap Insertion of tramp elements (mean values) Externalscrap Ownscrap Pig Iron Demand for tramp elements (of materials groups) Mild steel Deep Draw Quality (DDQ) Extra Deep Draw Quality (EDDQ) Source: http://www.stahl-online.de/deutsch/stahlinstitut_vdeh/eisen_und_stahlerzeugung/_seiten/metallurgische_grundlagen.php Recycling of steel scrap in Europe Bundschuh 24

Summary Driving force and borders for scrap utilization at EU-27 1) Present Situation Scrap is currently the main feedstock for crude steel production (~54 %) Lowest energy consumption and emissions at maximum scrap selection Percentage of tramp elements limits the usage for high und highest steel grades 2) Future challenges for the steel industry Protection of the scrap resources (= raw material resource) Potential for scrap metal use would currently already more than 70% of crude steel production. Potential will rise! Hedging of the scrap quality Monitoring and stronger cross linking at the life cycle process of steels More flexible crude steel production processes Crude steel production based on pig iron with higher scrap rates and higher flexibility at charging mix with pig iron at simultaneously high productivity High and highest steel grades with higher scrap input (= more trace elements) Integral development approach for material + process Recycling of steel scrap in Europe Bundschuh 25

Thank you for your attention Glück Auf Philip Bundschuh Montanuniversitaet Leoben Austria philip.bundschuh@unileoben.ac.at