Ferroalloy manufacturers of the CIS have found themselves in between the two anniversaries. In 1998, Russia’s ferroalloy manufacturing turned 90 years old, while in 2000 it will be exactly 70 years since the first electric furnace commenced its service.
FERROALLOYS
– ON THE THRESHOLD TO NEW MILLENIUM
Ferroalloy manufacturers of the CIS have found themselves in between the
two anniversaries. In 1998, Russia’s ferroalloy manufacturing turned 90 years old, while
in 2000 it will be exactly 70 years since the first electric furnace commenced its
service.
On the verge of these two jubilees, Ukraine hosted the International
Theoretical and Practical Conference named “Vital issues and outlooks of
electrometallurgic manufacturing: theory and technology; efficient use of mineral
resources and raw materials; ecology; economic aspects of domestic and foreign market
development”. Premises of OJSC “Nikopol Ferroalloy Plant”, which is one of the
largest ferroalloy factories, became the place for the Conference in early July 1999. This
Conference was held under the aegis of the Ukrainian Association for Manufacturers of
Ferroalloys and Other Electric Metallurgic Products (UAMF), as well as under the auspices
of the State Metallurgic Academy of Ukraine (SMAU).
The participants friendly and sincerely greeted the SMAU with its 100th
foundation anniversary and the SMAU’s Chair for Electric Metallurgy – with the 75th
anniversary. Besides, the participants wished all the best to Mikhail Gasik, Director with
the Chair for Electric Metallurgy and Academician of the Ukraine’s National Academy of
Sciences, on his 70th birthday.
Officials with the Ministry for Industrial Policy of Ukraine took part in
the conference. Besides, the list of participators comprised managers, manufacturers, and
scientists, engaged in ferroalloy production, coming from Ukraine, Russia, Georgia,
Kazakhstan, Slovakia, Austria, and Japan. Members of the conference paid much interest to
the reports:
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on situation in the Ukraine’s ferroalloy industry, delivered by Sergey
Grishchenko, First Deputy Minister for Industrial Policy of Ukraine; -
on realization of export potential of Ukrainian ferroalloy manufacturers,
delivered by Ivan Rogachev from the UAMF; -
on the current situation and outlooks for ferroalloy manufacturing at
OJSC “Nikopol Ferroalloy Plant” (by Alexander Koval) and at OJSC “Zaporozhje
Ferroalloy Plant” (by Yuriy Golov).
Reports on ferroalloy output and on ferroalloy markets of Russia (by V.
Ishutin and D. Rakitin) and of Kazakhstan (by V. Kulinich) were also rich in useful
information. Dr. R. Skatsche-Depisch, Director with Austria-based “DECOmetal group”,
spoke on the history of her company, as well as on cooperation between “DECOmetal
group” and OJSC “Nikopol Ferroalloy Plant”, which provoked much interest of the
participants. Mrs. Skatsche-Depisch specifically emphasized that the Plant has always
timely met the terms of contracts signed. Hence, the Austrian firm increased the quantity
of ferroalloys purchased by 50%. Dr. R. Skatsche-Depisch believes that, by improving
quality of ferroalloys and expanding sale markets, Ukraine can counterbalance the
aggravation of market conjuncture.
During the conference, it was pointed out that, over the six months of
1999, some of Ukrainian ferroalloy plants (in particular, OJSC “Zaporozhje Ferroalloy
Plant” and OJSC “Stakhanov Ferroalloy Plant”) boosted ferroalloy output compared to
that over the respective 1998 period. Yet, during the first half-year of 1999, all the
Ukrainian plants manufactured only approximately 500 ths. tons of manganese and silicon
ferroalloys, which corresponds to 91% of the output volumes in 1998. Recession in
ferroalloy demand was the main cause for reduction in manufacturing volumes. During the
first half-year of 1999, Ukrainian enterprises had to depress ferroalloy supplies down by
15% as against the year before.
One should keep in mind that, at the moment, Ukraine’s ferroalloy output is
concentrated at Nikopol, Zaporozhje, and Stakhanov Ferroalloy Plants. Nowadays, these
plants do not fully utilize their production capacities, while numerous electric furnaces
are kept in reserve.
Thus, domestic consumption of pig iron and steel in Ukraine, as well as
qualitative and structural fluctuations in consumption, will affect on output volumes of
traditional ferroalloys by these plants. Besides, the manufacturing volumes will change
depending on conjuncture of foreign markets, on export opportunities for manganese and
silicon ferroalloys, as well as largely depending on fluctuations in prices for raw
materials and electric power.
At the same time, it should be mentioned that export of ferroalloys to the
CIS will further lessen since Russia and Kazakhstan are currently building up their local
manufacturing facilities for manganese ferroalloys. Hence, it will be natural and normal
for Ukraine to start production of new ferroalloy product types utilizing the capacities
reserved. In the first place, this relates to chromium-containing ferroalloys and
ferroalloys with components, which can be mined in Ukraine, such as ferrotitanium,
ferroboron, silicozirconium, and silicocalcium. To reach this goal, it is expedient to use
production capacities of Pobuzhskoye Ferronickel Plant, Donetsk Chemical And Metallurgic
Factory, and “ZaporozhAbraziv”.
Technological progress in steelmaking causes changes in consumption of
certain ferroalloys. In particular, the demand will increase for chromium-containing
ferroalloys, low-phosphorous manganese ferroalloys, ferrotitanium, silicocalcium,
silicozirconium, and ferroboron for protection against x-ray exposure.
The only possible way to get such results is to conduct reorganization and
reconstruction of enterprises.
The conference summarized the following:
-
slow-pace decrease in the world steel output causes recession in demand
for ferroalloys, which will enhance competition. This situation is already true for the
CIS member-countries, because enterprises from one country frequently work with the same
market segments; -
the UAMF has rather beneficial contacts with “Euroaliage”
Association, which evidences that Europe well recognizes Ukraine’s ferroalloy
manufacturers; -
preparatory works on the Program for Ukraine’s development until the
year 2010 are almost completed. The Program envisions setting up facilities to manufacture
new types of ferroalloys and alloying components; -
tendency for stabilization of ferroalloy manufacturing has been observed
in Russia. Output of manganese ferroalloys has been commenced and, at the present, up to
10 furnaces smelt manganese ferroalloys to satisfy demands of Russian consumers; -
it is planned to coordinate manufacturing and export of ferroalloys from
the CIS in order to ban unfair competition; -
ensuring low phosphorus contents (up to 0.15% if imported raw materials
are used and up to 0.35% if domestic raw is used) is the necessary precondition to promote
Ukrainian-made ferrosilicomanganese; -
considering the world experience, such as that of Finland, it is rather
worthwhile to reprocess wastes and extract pure metals (such as bismuth and antimony),
which can be used to manufacture powders. The latter are sold at rather high prices.
The Editorial Board of “Metals Market” plans to cover all the aspects
and problems of ferroalloy production in one of the forthcoming issues.
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"Rynok metallov" ("Metals Market")