13:05 29.12.2012

YEAR IN REVIEW: Ukrainian steelmakers cut gas consumption due to new coal injection facilities

3 min read
YEAR IN REVIEW: Ukrainian steelmakers cut gas consumption due to new coal injection facilities

Ukrainian metallurgical enterprises have continued the upgrading of blast furnaces by installing coal injection facilities amid gas price hikes and tough competition on the domestic and foreign markets in 2012.

Anatoliy Starovoit, the director general of Dnipropetrovsk-based Ukrkoks association of coking and chemical enterprises, told Interfax-Ukraine that in 2013 smelters plan to produce 13.5 million tonnes of pig iron with coal injection technology out of next year's target of 30 million tonnes. However, Starovoit did not specify the share of pig iron produced in 2012 with coal injection technology.

In his words, coal injection facilities are being used or will be shortly used at 13 blast furnaces.

"Coal injection facilities are in operation or being commissioned into industrial operation at Zaporizhstal steel mill (two blast furnaces), Donetsk metal works (two blast furnaces), Alchevsk steel mill (four blast furnaces) and Mariupol-based Illich steel mill," Starovoit said.

The Dnipropetrovsk-based Metallurgprom association of metallurgical enterprises said that as of December 1, 2012, in operation were 27 out of 36 blast furnaces (75%), 19 out of 21 converters (90%), eight out of 16 open-hearth furnaces (50%), and five out of 15 electric furnaces (33%).

Thus, over a third installed blast furnaces employ coal injection technology, which is about half of those in operation.

In his words, high-quality coking coal with small sulfur content is needed for coal injection facilities.

"Ukraine produces about 300,000 tonnes of such coal, while a total of 1.8 million tonnes is needed. Ukraine will buy about 10-10.5 million tonnes of coking coal or high-quality concentrate abroad for coal injection facilities and coke production next year," Starovoit said.

Yet, he said, consumption and imports of coking coal will not increase because of a reduction in its consumption of coke by blast furnaces.

In his words, coal injection facilities is conducive to a cut in pig iron production costs by $40-45 per tonne, which makes Ukrainian pig iron producers more competitive compared to other enterprises.

"The peers in Russia note that high prices of gas have made the upgrading of our blast furnaces more active, while they do not work in that direction, which may become a problem for them under market-oriented economic conditions with WTO membership," he said.

He also said that blast furnaces at ArcelorMittal Kryviy Rih and Dniprovsky Dzerzhynsky steel mill will be transferred to pulverized coal fuel in the near-term outlook.

"Economic feasibility will facilitate the introduction of coal injection in all the blast furnaces in Ukraine, which will boost the competitiveness of pig iron production," he concluded.

As was reported, plans to build a new rolling mill and introduce coal injection technology in blast furnaces at Dniprovsky Dzerzhynsky steel mill were announced during a recent meeting at the mill.

Coking and chemical plants in January-November 2012 reduced the production of 6%-moisture metallurgical coke by 3.1% year-over-year, to 17.401 million tonnes. At the end of 2011, coke producers boosted output by 5.3% from 2010, to 19.582 million tonnes.

The share of imported coking coal is now 37.5% of total consumption in Ukraine. Earlier, the share of imported coking coal was 36-40%.

Ukraine traditionally imports about 9 million tons of concentrate, mainly from Russia.

AD
AD
AD
AD
AD