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Waste Mangement in Steel Sector


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									              Base Paper : Waste Management in Steel Industry

    YP Chawla CEO Zoom Developers P Ltd. , National Jt .Secretary IIPE

               Iron Pillar Erected by King Ashoka before Christ

This paper is intended to give some inputs and data that has been collected for
reference by our Paper presenters , delegates to work out the Strategies
intended to be developed in this seminar and come up with recommendations
that will make this Industry self sustained to the extent possible targeting Zero
Waste. The reports and data referred in this paper might have gone changes at
the time of Seminar. These have been updated at the time of Compilation and
are intended for giving direction to the process of interaction and to be referred
as base paper during the Seminar.

The Steel Industry is presently vibrant due to demand as well as volatile due to
high cost of inputs. The World Steel industry has entered a new phase. Finished
steel consumption in the five years since the start of the millennium has
increased by 233 million tonnes - an average annual rate of around 6 percent.
This compares with a 1.2 percent average yearly rise in the previous three
decades to 2000.

Large Steel inventory building has occurred around the world. The talk of
shortages of raw materials has possibly prompted buyers to carry higher stock
levels than previously considered necessary. Fluctuating interest rates at
moderately low level the world over (barring India) have made inventory building
exercise less painful than in the past.

On the other end, Chinese government is deliberating on avoiding overheating of
Chinese economy by attempting to reduce growth in key industrial sectors,
including steel.

Overall, the World has not seen so much demand in last 20 years as it is now.
The global steel demand is seeing the rise on the back of accelerated
infrastructure activity in China, CIS and India, housing boom in USA, and white
goods resurgence in Europe. During the recent recessionary phase, the industry
has consolidated in terms of ownership as well as mothballing of inefficient
capacities. And the Steel prices continue firming up.

The Demand of Steel in India, China and other Asian countries is led by
emphatic investment activities in infrastructure. While, the reconstruction work in
Iraq is expected to fuel further demand for steel over the next few years. China is
consuming steel like never before for its infrastructure with investments such as
Three Gorges project on Yangtze as well as part of its build up to the Beijing
Olympics in 2008 and the Shanghai Expo in 2010.

In Europe, there is demand from housing and white goods industry which is on
buoyancy, according to industry estimates.

The global metals and mining industry grew by 17.5% in 2007 to reach a value of
US$1,457.4 billion. In 2011, the global metals and mining industry is forecast to
have a value of $1,600 billion, an increase of about 12% since 2007.

The demand supply gap is expected to increase driving the steel prices
northwards, even as the global steel industry is not prepared for this demand
onslaught. Approx. 90 percent of global steel demand growth over the next two
years will take place in the emerging or developing nations of the world.

Steel is an input for Global Industry. Steel Sales account for 67 % of the global
industry’s value.

The challenges that the Industry faces today are the requirement of a sustainable
development by meeting the needs of our present generation without
compromising the ability of future generations to meet their own needs. The
Industry is required to understand the importance of a sustainable approach to
the operations of any company across the entire value chain, from the extraction
of raw materials from the Mine through to the manufacture of finished steel
products and the distribution to our customers. (Womb to Tomb Approach)

Steel is an integral part of our developing world, both now and into the
future. As one of the most common materials we come in contact with everyday,
                      it is difficult to imagine a world without steel. The reason for
                      this is steel’s strength, versatility and ability to be recycled.
                      Steel can be used many times over with re-processing
                      techniques maintaining properties and qualities, something
                      that makes it unique from other materials.
The Challenge of the high energy Cost (Iron and Steel sector is the largest
energy consuming sector in the world, devouring 15% of world industrial
energy) coupled with a pressure on the Carbon emissions and, the employing
Competitive Specific Energy consumption pattern is the challenge to the
Technology Providers.

The benchmarking of Energy Consumption is another challenge by India being a
net importer of Crude Oil. In India, average specific energy consumption in steel
making is in the range of 6.2 –8.2 GCal/TCS (vis-à-vis international value –4-
4.5 GCal/TCS)

                                      Similarly benchmarking Co2 emissions,
                                      the average CO2emission is in the range
                                      of 2.2 –3.2 T/TCS in India(vis-à-vis
                                      international value of 1.5 –1.7 T/TCS)
                                      CO2emissions in steelmaking stem from
                                      the intense consumption of fossil fuels –
                                      for thermal energy, coke making, process
                                      requirement and electrical energy mainly
                                      is another task to be considered.

                                      Carbon dioxide emissions from steel
                                      production, which range between 5 and
                                      15% of total country emissions in key
                                      developing countries will continue to grow
                                      as these countries develop to cater to
                                      global steel demand
Reducing energy intensity is therefore not only beneficial in saving scarce
resources but also in reducing carbon emissions and thus mitigating global
climate change.

With increasing energy prices, diminishing reserves of conventional forms of
energy, and increasing GHG emissions, it is a need of the hour for the iron and
steel industries of the developing world to a take sustainability approach for
utilization of the limited fossil fuel reserves of the earth.

                                                                     reduction         in
                                                                     iron and steel
                                                                     facilities can
                                                                     be           done
                                                                     routes         like
                                                                     replacement /
                                                                     switching of
CO2 intensive fuel (e.g. oil to gas, coal to gas), energy efficiency in the process
technology, waste processing , waste heat recovery projects including power
generation, energy savings by elimination of reheating processes. Such
technological initiatives for curbing GHG emissions, requires substantial capital
investment, because of which India, with its mixed bag of plant and machinery
(power + industrial) in terms of old, outdated industrial and power generation
equipment coexisting with the latest, most modern machinery, is widely seen as
a key CER supplier under CDM

Some steel companies in India have initiated ‘Climate Change initiatives’ towards
improving its energy performance through fuel substitutes, modernization,
recovery & reuse of by-product energy. In integrated steelmaking, a major source
of energy and CO2 emissions is from the manufacturing of coke consumed in the
blast furnaces. With continuous inflation in global steel demand and supply, there
will be a necessity for increasing amount of coke production

In this Context the Waste Management in Iron & Steel Industry becomes
important , covering the complete cycle of Process from Mining Ore to Saleable
Product has been planned to debated on transiting the process from ‘end - of -
Pipe approach’ to Reduction, Recycle & Reuse i.e. Cleaner Production leading
ultimately to Zero Emissions’ in continuing with Zero Philosophy .

Zero Defect – (Total Quality Management) ; Zero Inventory- (Just in Time
Zero Emission – (Total Productivity): Reengineering of the Manufacturing
Processes for fully Utilize the resources within Industry for higher
Revenues and Jobs. Zero Emissions extend as under :

   End-of Pipe          Cleaner Production                    Zero Emissions
    approach            (Reduce, Recycle,
                             Reuse)                        (Total Productivity)
                                                Adding New Industry in Up Stream,
       Minimizing effects on Down Stream
                                                Utilizing Wastes in existing Industry
                Minimize Waste                                Value Addition
                Cost Reduction                              Revenue Increase
Continuing with                                 Developing Industry Cluster for using
Existing            Modifying the Existing Unit Waste as Input to next Industry
Production          Process
Measures at the
Outlet of the          Input- Output Analysis            Output- Input Connection
Water, Energy, Waste Minimization through
Wastes              Production          Process Integrated Approach- Holistic Approach
   Industry is
    presently          Transit Stage to next
                                                              Ultimate Goal
 focused on the                stage

Wastes Recycling will lead to Minimization of exploitation of Natural Resources

 The factors that require Measurement of the industries’ sustainability are to:
                                                              Develop indices of
                                                           standards and
                                                           labeling programs
                                                              To learn “best-of-
                                                           kind” operation
                                                              To build a kind of
                                                           “Energy Code”
                                                              To facilitate
                                                           deployment by
                                                           gathering information
                                                           on “State-of-the-Art”
   The Technology of Manufacture is required to be examined for better

                                o 40 per cent of the world’s steel production
                                  takes place through the EAF route, which
                                  manufactures steel from scrap metal.
                                o Steel recycling is common practice and
                                  scrap steel has become a valuable
     commodity because there is a technology that can accept it. Engineers
     and Scientists to take on exciting route to develop technologies and
     processes to be able to take into account all Waste Materials. The
     possibilities are endless!
   o Enhancing existing processes to be able to use all kinds of Waste
     resources to make the Sustainable Materials Processing, including
     recycling of waste in steelmaking, lowering of energy and emissions in
     processing, iron and Steelmaking technologies.

While debating various issues, the Industry Recent High Lights on the
Resource Position may also be examined:
  o India's iron ore resources can increase significantly as per ICRIER
  o Iron Ore reserves can increase significantly from the current estimated level by
      increasing investment & exploratory efforts.
  o Concerns over reserves in view of the proposed capacity additions need to be
      dispelled, as significant share of steel gets recycled and efforts will made
      through improvement in technologies and waste recycling , demand for iron ore
      is to be attempted to be stable.

       The studies have indicated that in the current scenario, export restrictions will
       make it difficult to take care of excess fines. Restrictions on trade in iron ore will
       also restrict the economies of scale to Indian mining Companies and they may
       remain inefficient in global comparison forever. Such restrictions could also lead
       to closure of some of the mines, leading to loss of direct and indirect jobs.

       India's iron ore production in 2006-07 was around 181 million tonne, which was
       in excess of the consumption level. India exported about 93 million tonne during
       that fiscal, which is expected to come down to about 88 million tonne in the
       current fiscal. Nearly 80% of exported ores are fines, because those are not
       adequately used in India. India's competitiveness in the Chinese market has
       already started falling, the study points out.
World Scenario on Steel

 Sl      Country       2007     Share each       Sl          Country            2007     Share each
       Total            15.3
  1    Japan           3.364      22.00%         22      Chile                  0.034       0.20%
  2    Brazil          2.418      15.80%         23      Saudi Arabia           0.027
  3    US              1.551      10.10%         24      Sweden                 0.022
  4    Belgium         1.539      10.10%         25      Tanzania               0.022
  5    India           0.977       6.40%         26      Argentina              0.021       0.10%
  6    Pakistan        0.687       4.50%         27      Indonesia              0.016
  7    Turkey           0.64       4.20%         28      Malaysia               0.015
  8    Holland         0.509       3.30%         29      Philippines            0.008
  9    UK              0.481       3.10%         30      North Korea            0.008
 10    France          0.451       3.00%         31      Norway                 0.007
 11    Taiwan          0.384                     32      UAE                    0.006
 12    South Africa    0.382          2.50%      33      Egypt                  0.006
 13    South Korea     0.382                     34      Morocco                0.006
 14    Iran            0.376                     35      Russia                 0.005
 15    Kazakhstan       0.27          1.80%      36      Mexico                 0.004
 16    Italy           0.213          1.40%      37      Bengal                 0.003
 17    Canada          0.169          1.10%      38      Burma                  0.002
 18    Germany         0.096          0.60%      39      Algeria                0.002
 19    Viet Nam        0.082          0.50%      40      Hong Kong              0.001
 20    Australia       0.073                     41      Sri Lanka              0.001
 21    Thailand        0.038          0.20%      42      Mozambique             0.001
Region             1999        2000      2001    2002       2003    2004         2005      2006     2007     2008
European           152.9       160.0     156.5   156.7      154.4       162.1    164.1     167.0    167.3    166.5
European           128.6       132.6     129.5   127.4      137.4       144.1    145.4     146.9    146.9    146.2
Other Europe       18.2        22.1       20.6   20.7        24.1       26.0      27.0      28.0     29.7     30.5
Former USSR        31.0        38.8       41.2   38.3        43.4       47.0      50.0      52.0     53.5     55.0
NAFTA              142.4       149.2     132.1   135.1      132.9       152.5    153.5     157.5    157.5    155.5
S America          24.8        28.1       28.4   27.4        28.1       31.5      32.5      34.5     35.5     36.5
Africa             15.4        15.0       16.3   17.4        17.1       17.5      18.0      18.5     19.0     19.0
Middle East        16.6        18.4       19.1   20.9        21.6       23.5      25.0      26.5     27.5     28.5
PR China           122.6       124.6     153.4   185.6      230.8       257.4    291.4     302.0    310.0    322.0
Japan              68.9        76.1       73.2   71.7        73.8       75.5      76.5      76.8     77.0     76.8
Other Asia         109.0       119.5     118.9   129.5      133.3       141.0    143.5     145.7    147.0    149.2
Oceania               6.7       6.4       6.3     7.1        7.5         7.5      8.0       8.0       8.5     8.5
WORLD              708.5       758.2     766.0   810.4      867.0       941.5    989.5     1016.5   1032.5   1048.0
Region             1999        2000      2001    2002       2003    2004         2005      2006     2007     2008
Totals may not be arithmetically correct because of rounding
                                                                                        Ref : MPES UK
Governmental Interventions on Iron & Steel:

China began to levy a 5% export duty on coke in November 2006. It raised the tax rate
to 15% on June 1st 2007. As the world's largest coke producer and exporter, the
country has a say in pricing for coke on international markets. Foreign buyers chose to
bear price rises based on the 15% export duty.

India : Govt. of India in order to cool down the surge in steel prices in India by
improving availability is planning to duty cuts on raw and finished material and the
inflation and with a view to controlling prices exports would be disincentivised with levy
of export duty. Imposition of export tax , Reduction of custom duty on Iron & Steel
,Abolishing Countervailing duty on re bar imports etc.

Prospects for International Steel Industry

Present status of the International Steel industry Steel is primarily a raw material
based industry as for the production of one tonne of steel, an integrated plant
consumes 4 tonnes of raw materials.

India with its abundant availability of high grade Iron ore, the requisite technical
base and cheap skilled labour for the development of steel industry and to
provide a strong manufacturing base for the metallurgical industries.

India presently accounts for less than 5% of the global output of Finished Steel
and 1% of global trade. The per capita consumption of 27 kg. is also well below
even the Asian average of 128 kg. China on the other hand shall consume 280
million tonnes of Steel, including 30 million tonnes through imports against the
total consumption of 30 million tonnes by India.

Chinese Steel and metallurgical industries have provided a major thrust to the
economic development, GDP growth and generation of massive employment

In India , Non-integrated or the secondary producers accounting for over 50%
output of the Finished Steel but without any captive mines have not gained much
due to the sharp rise in the prices of Melting scrap, Sponge Iron, Coke, Iron Ore
and other inputs.

The growth has been mainly export based, boosted by the high global prices and
liberal export incentives.

The current status of the Indian Steel industry amply reflects the vast potential for
the future growth of steel and allied industries through integrated planning to
exploit the potential and the Indian steel is indeed poised for a quantum jump in
the next decade.
Structure of Indian Steel Industry Indian Steel Industry comprises of several
interdependent and interlinked segments for value addition, broadly classified as
the integrated or the majors producers and non-integrated or the Secondary
Producers. India has played a pioneering role in the recycling of scrap for the
production of Steel through EAF/Induction Furnaces and the rolling of both the
Long and the Flat Products in Mini/Midi Mills at highly competitive prices. The
Secondary Sector accounted for over 50% of the total indigenous output of
Finished Steel

The Secondary Producers focus on the production of high grade steels and
specialty products to meet the specific requirements of the industry and the
development plans must include the strengthening of the Secondary sector along
with the major producers.

Ample scope for the reduction of production costs by the Secondary Sector
through the technological up-gradation, particularly by the Electric Arc and the
Induction Furnace Producers, through the conversion of Electric Arc Furnaces to
Twin shell Furnaces.

Technological developments in the past decade, the non integrated producers
and the integrated compact Mills have emerged as low cost producers of
Finished steel due to low capital investment and breakeven points intense
customer orientation and flexibility in altering the product wise.

The Sponge Iron/Mini/Midi Rolling Mill route appears to be the appropriate for a
large country like India and the requisite support be provided to the Secondary
Producers on merits, for the modernization and expansion projects and these
Mills adopting Waste Recycling Techniques.

Key role of the domestic market The expansion of the domestic market in a huge
country like India holds the key to the future growth of the steel industry and the
basic input like Steel should obviously be utilized for the industrial and the
economic development of the country. Besides, the export prices and markets
are subject to wide ranging fluctuations triggered by economic and political
developments in different parts of the world.

Targets of the Seminar :

The major responsibility for the implementation of the development plans and
strategies shall however rest on the industry through (i) Benchmarking with the
leading global steel producers in term of the production costs, quality and
service, to meet the global competition in the low tariff regime. (ii) Customer
orientation and collaborative research and development with the metallurgical
industries, to develop cost effective products for the domestic and export markets
and to develop India as a low cost global manufacturing base for the
metallurgical products. (iii) Development of rural markets and providing requisite
infrastructure support for fabrication and after sale service in the rural areas. (iv)
Promote construction of steel intensive commercial buildings and domestic
housing in collaboration with Architects and town planners.

To Resolve:

Protection of the Biosphere
We will reduce and make continual progress toward eliminating the release of
any substance that may cause environmental damage to the air, water, or the
earth or its inhabitants. We will safeguard all habitats affected by our operations
and will protect open spaces and wilderness, while preserving biodiversity.
Sustainable Use of Natural Resources
We will make sustainable use of renewable natural resources, such as water,
soils and forests. We will conserve non-renewable natural resources through
efficient use and careful planning.
Reduction and Disposal of Wastes
We will reduce and where possible eliminate waste through source reduction and
recycling. All waste will be handled and disposed of through safe and responsible
Energy Conservation
We will conserve energy and improve the energy efficiency of our internal
operations and of the goods and services we sell. We will make every effort to
use environmentally safe and sustainable energy sources.
Risk Reduction
We will strive to minimize the environmental, health and safety risks to our
employees and the communities in which we operate through safe technologies,
facilities and operating procedures, and by being prepared for emergencies


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