Million Link

Alternative Names

  • Steel Scrap
  • Steel Granules

Information

  • Million Link have been selling 1000mt per month to Malaysia (2019-04-10)
  • Carbon content can be quite low
    • Need to get the carbon up to around 10%
    • Not very suitable for High Frequency Oven/Foundry (hard to melt)
      • Steel granules drop to the bottom of the furnace
      • Need to fix with other materials (such as a carbon raiser)
      • These ovens would only be able to consume a small amount of material per day
    • Better for Arc Furnaces
    • Steel Granules :
      • cannot reduce the carbon content
      • steel granules are produce after liquid steel is splashed from the furnace.
        • by-product of steel production
        • after washing and cleaning you get steel granules
        • not made from iron ore directly
  • Used for producing
    • Billet
    • Wire rod
    • Reinforced bar
  • Used in
    • Electric Furnaces
  • To Use
    • Melt big size scrap / pig iron first
    • then add steel granules

 


  • Weather
    • Flooding
    • Cyclones
    • Wet Season
  • Government
    • Sanctions
    • Tariffs
    • Regulations
      • Chinese Government closing smaller Iron Ore plants
        • less demand for lower quality Iron Ore
    • Environmental
    • War
    • Poor Administration
    • Foreign Exchange Fluctuations
    • End of Mining Leases
      • In India
  • Disaster
  • Disease
  • Terrorism
  • Falling Demand
  • Low Prices
    • due to increasing Supply
  • Transport
  • Labor Strikes

Australia

  • Cyclones (December – April)

Australia have a very strong Iron Ore industry. Its got stringent environmental regulations, but due to high quality and quantity resources, and a stable national government, there has been a large investment in infrastructure as well as excellent maintenance. The industry is dominated by big stable miners.

The most common threat to production are occasional cyclones which occur from December to April. There can be several cyclones in the Iron Ore producing region per year.

Due to high efficiency, it is unlikely the Australian Iron Ore industry will shut down due to low prices.

Figure 3.15 is a map of Australia showing the names, locations and size of major iron ore deposits (i.e., those with more than 1000 million tonnes of in situ resources). The map also shows the state boundaries and capital cities as well as the major geological provinces of the country. Iron ore deposits are displayed as filled red circles split into six sizes according to the total in situ resources of iron ore. The six sizes are labelled '1000 to 2000 million tonnes', '2000 to 3000 million tonnes', '3000 to 4000 million tonnes', '4000 to 5000 million tonnes', '5000 to 10 000 million tonnes' and 'greater than 10 000 million tonnes'. In addition, some circles are drawn with a heavy black line indicating that these deposits are operating mines. The map shows that nearly all the nation's iron ore deposits occur in the Archean rocks of the Western Australian Pilbara region. A few deposits, mostly less than 2000 million tonnes, are scattered over the mid-west of Western Australia, also in Archean provinces, and in South Australia in Archean and Proterozoic provinces.
Iron Ore Resources in Australia
TC coastal crossings in Australia
38 Years of Cyclones – Red Dots are Severe Cyclones
Major Iron Ore Ports in Australia

Ports

  • Port Headland
  • Dampier
  • Cape Lambert

Companies

  • BHP
    • US$25.89 per metric ton for BHP Billiton
  • Rio Tinto
    • US$20.8 per metric ton for Rio Tinto
  • Fortescue Metals
    •  US$51 per metric ton for Fortescue Mining Group
  • Hancock Prospecting

South Africa

  • Poor Administration
  • Transport Bottlenecks
    • Rail
  • Labor Strikes

Pakistan

  • Inefficient operations mean low prices will shutdown industry
  • Unhelpful Government Regulations
  • Poor Transport Infrastructure
  • Lack of Explosives
  • Monsoon weather events (July – Sept)
  • Terrorism in Balochistan region
  • Small Unreliable Miners
    • smaller miners stop mining if they have no customers

Brazil

  • Rainy Season (Oct – Mar)
  • Poor Transport Infrastructure
  • Mine Disasters – shutting down big miners
    • dam collapses
    • ensuing government regulations

Companies

  • Vale
    • US$23.6 per ton for Vale
  • Semarco

China

  • Disease – Coronavirus
  • Government Regulations

Russia


  • Pig Iron is an intermediary material for steel production
    • directly used in Basic Oxygen Furnace (BOF)
    • mixed with Steel Scrap to produce Cast Irons
  • Pig Iron is a high Fe, low residual metallic material for producing high quality iron and steel products in a wide variety of furnaces. It should not be considered as a scrap substitute but rather as a source of clean iron units that can be used to supplement and enhance the scrap charge. Many EAF operators prefer to use Pig Iron to blend with scrap and other feedstock materials due to its high Fe content, low gangue, and chemical purity.
  • On average, Pig Iron makes up between 5-10 percent of the global EAF metallics charge. In some parts of the world where scrap is scarce, Pig Iron can be used at up to 60 percent of the charge.
  • Pig Iron ingots can range in size from 3kg to more than 50kg.
  • The terms comes from the original castings method which looked like piglets suckling off the mother sow.
  • Low melting point (around 1200 °C )

Benefits

  • High purity, low gangue allows for the production of steel products requiring low residual content or for the use of higher percentages of lower cost scrap in the charge mix
  • Known and consistent chemistry certified by analysis
  • Chemical energy delivered efficiently by contained carbon, which promotes faster melting and increased productivity
  • High density can reduce the number of bucket charges, allows for increased use of lower cost, less dense materials, and reduces storage space requirements
  • Consistent shape and form provide efficient material handling characteristics
  • Easy to store with no special requirements (silos, covered space, etc.) and a very low rate of degradation (oxidation) even when stored outdoors and uncovered

Merchant Pig Iron

Merchant pig iron is cold pig iron, cast into ingots and sold to third parties as feedstock for the steel and ferrous casting industries.

Merchant pig iron is produced by:

  • dedicated merchant plants – all of whose production is sold to external customers: or
  • integrated steel mills – with iron that is surplus to their internal requirements and cast into ingots and sold to the merchant market.

Types of Pig Iron – 3 Types (mostly determined by the Si Content)

  1. Basic Pig Iron / Steel Grade Pig Iron
    • Merchant Pig Iron (ie Ingots) are used mainly in Electric Arc Furnace (EAF) for the purpose of steel making.
      • EAF melts the Pig Iron before being transferred to the BOF
      • Can also straight dilute the Pig Iron with Scrap Steel without the BOF
    • Typical Specs
      • Fe : 94 – 95%
      • C : 3.5 – 4.5%
      • Si : 1.5% max
      • Mn : 1.0% max
      • P : 0.08 – 0.15% max
      • S : 0.05% max
      • Cu, Ni, Cr, Mo, Sn, Pb, Zn, V : Trace
      • Ingot Weight : 3.5 – 45kg
      • Bulk Density : 3.3 – 3.7 t/m^3
      • Content of Chips & Fines : < 2% as shipped
  2. Foundry Pig Iron / Hematite Pig Iron
    • This type of pig iron is also known as hematite pig iron and is used in cupola furnaces for grey iron castings.
    • Low Sulphur
    • Low Phosphorus
    • Typical Specs
      • C : 3.5 – 4.5%
      • Si : 1.5 – 3.5%
        • 180: 1.5 – 2%,
        • 275: 2.5 – 3.0%
        • 310:3.0 – 3.5%
      • Mn : 0.4 – 1.0%
      • P : 0.15% max
      • S : 0.05% max
    • Foundry Pig Iron [also known as hematite pig iron] is differentiated from steelmaking Basic Pig Iron by its higher silicon content which is derived from the source raw materials and/or from ferro-alloy additions
    • Low residual impurities dilute undesirable elements such as chromium, vanadium, lead and titanium in the melt and offer the potential for use of a higher proportion of lower grade, lower cost scrap.
    • Being manufactured from selected iron ore sources, Foundry Pig Iron has a consistent and predictable chemical and physical analysis which allows better control and variability of melting, tighter control of final casting composition and removes the requirement for costly heat treatment of castings.
    • Benefits
      • Foundry Pig Iron is suitable for iron castings used in general engineering, machine tools and parts for the automotive industry.
      • Due to the high proportion of iron ore used in the production of Foundry Pig Iron, the formation of pearlite in the finished casting is promoted.
      • This effect is enhanced when more than 10% of Pig Iron per charge is used.
      • The use of Foundry Pig Iron promotes graphite formation, reduces primary chill and improves machinability, particularly important in thin-walled castings
      • The use of costly chill reducing inoculants can be minimised through increased additions of Foundry Pig Iron.
      • The high density and high carbon content of Foundry Pig Iron improves melting rates or reduces energy consumption. In an electric induction furnace savings can be as high as 50 kWh/t of molten metal. In a cupola furnace savings of up to 50 kg coke/t of molten metal can be achieved.
      • The higher bulk density of pig iron relative to scrap means lower storage space requirements, less handling during charge make-up, fewer charge buckets and lower charging time.
      • The lower surface area : volume ratio relative to scrap means lower oxide (rust) formation and thus lower slag volume.
      • The carbon content is chemically combined and thus goes into solution more quickly with lower energy requirement than when adding a recarburiser to scrap.
  3. Nodular Pig Iron / High Purity Pig Iron / HPPI
    • This is synonymous to nodular pig iron and is used for producing ductile iron castings, which is also known as SG or Spheroidal Graphite.
    • High Purity Pig Iron (HPPI) is differentiated from other types of pig iron by its low manganese, phosphorus and sulphur contents.
    • HPPI is manufactured from the smelting of ilmenite sand in electric furnaces to produce titanium dioxide slag and pig iron.
    • Production facilities are located in South Africa, Canada, Norway and elsewhere.
    • HPPI constitutes the principal ferrous feedstock material for production of ductile iron castings (also known as nodular or spheroidal graphite iron) used in high quality automotive, engineering and energy
    • Aside from its low Mn, P and S contents, HPPI is also low in other undesirable impurity elements.
    • Being manufactured from ilmenite mined on a large scale, HPPI has a consistent and predictable chemical and physical analysis casting components.
    • High Purity Pig Iron used for Ductile Iron Production
    • Typical Specs
      • Carbon : 3.5 – 4.5%
      • Si : 0.5% max
      • Mn : 0.05% max
      • P : 0.05% max
      • S : 0.02% max
    • Benefits
      • Low content of residual impurities
        • dilutes undesirable elements in the melt
        • offers potential for use of higher proportion lower grade, lower cost scrap
      • Consistent and predictable analysis
        • allows better control and lower variability of melting
        • tighter control of final casting composition = better mechanical properties of castings
        • removes requirement for costly heat treatment of castings
      • Higher bulk density than steel scrap
        • much lower storage space
        • less handling during charge make-up
        • fewer charge buckets required
        • lower charging time
      • Lower surface area: volume ratio than scrap
        • lower oxide (rust) formation = lower slag volumes
      • Carbon content is chemically combined
        • goes into solution much more quickly with less energy required than when adding a recarburiser to scrap
      • Low Mn content and dilution effectiveness
        • the required mechanical properties of most castings made with HPPI are achieved in the as-cast condition, thus eliminating costly heat treatment, a particularly attractive option for the production of castings with high impact resistance.
      • Higher electrical efficiency
        • faster melting and reduced power consumption in induction furnaces
Pig Iron Type C Si Mn S P
Basic 3.5 – 4.5 ≤1.25 ≤1.0 ≤0.05 0.08-0.15
Foundry 3.5 – 4.1 2.5 – 3.5 0.5 – 1.2 ≤0.04 ≤0.12
High Purity/Nodular 3.7 – 4.7 0.05 -1.5 ≤0.05 ≤0.025 ≤0.035

Blast Furnace – Pig Iron Production

A blast furnace is a large reactive container.

In this complex counter-current reactive container, a carbon monoxide gas (a reducing agent) rises from below, iron ore (an oxide) and coke drop from above, and the three phases of solid, liquid, and gas coexist.

Creating Pig Iron

The ascending gas causes the temperature of the iron ore to rise to 800 degrees C in the granular zone.

Then, the iron ore enters the softening and fusible zone. Pieces of iron ore softened at a temperature between 1,000 degrees C and 1,200 degrees C mix and stick to each other in this zone.

Charged coke and iron ore remain in layers until this zone. Iron ore (an oxide) deoxidizes into iron and the melted iron falls through the dripping zone like rain and accumulates at the bottom at 1,500 degrees C.

In the meantime, hot air at the temperature of 1,200 degrees C is blown in with pulverized coal through tuyeres, which burns the coke and pulverized coal in raceways, changes into a 2,000 degree C carbon monoxide gas and moves up.

The gas travels through the rain of molten iron in the dripping zone and then passes through the softening and fusible zone which is the most difficult zone for gases to go through.

In this zone, the gas travels through a coke layer between pieces of iron ore that have stuck together. Carbon monoxide gas is also reproduced through a solution loss reaction that transforms carbon monoxide first into carbon dioxide and then back into carbon monoxide.

The gas leaves the blast furnace from the top as a blast furnace gas containing fifty-fifty carbon monoxide and carbon dioxide at the temperature of 200 degrees C after deoxidization of the iron ore in the granular zone.

Superior Foundry Pig Iron Production from Hot Pig Iron

Kobe Steel manufactures foundry pig iron of high quality by dephosphorizing and desulfurization of the hot pig iron. Our foundry pig iron are used widely for a various fields of castings in the manufacturing industry

Pig Iron Uses

  • Basic Pig Iron :
    • Creating Steel in a BOF furnace
    • Cast Iron Production
      • To produce right chemistry it is mixed with
        • steel scrap
        • FeSi,
        • SiMn,
        • FeMn
        • Inoculants
        • Nodularizers
      • Cast Iron has 3% Carbon
      • Types
        • Grey Cast Iron
        • White Cast Iron
        • Ductile Cast Iron
  • Foundry Pig iron :
    • Specially used for creating Grey Cast Iron in a Cupola/Induction/EAF furnace
    • Lower Sulphur
    • Lower Phosphorus
    • Higher Silicon
  • Nodular Pig Iron :
    • Specially used for creating Ductile Cast Iron in a Induction/EAF Furnace

Types of Pig Iron Scrap

  • Pig Iron Scrap
    • Typically produced either from surplus, defective or overflow Pig Iron
    • Can be either before or after the De-Sulphurization process
    • Defective Pig Iron is Pig iron that doesn’t meet the required chemical analysis.
    • Pig Iron scrap is can be dumped directly into a slag heap, or can be dumped into sand.
    • Pig Iron scrap is usually quite porous.
    • Usage
      • small foundries
Pig Iron Scrap Large 300mm
  • Granulated Pig Iron
    • a method for creating a more usable product from surplus molten Pig iron.
    • The liquid Pig iron is made into large droplets which are cooled with water, creating product that is much easier to handle
      • can be poured
      • has no sharp edges
Granulated Pig Iron – GPI
  • Pig Iron Skull Scrap
    • Skull scrap solidifies on the inside of a ladle and knocked out of the ladle after it has cooled sufficiently.
    • Usually comes in large pieces with a curve from the ladle
    • Usage
      • small foundries (need to be careful of size)
  • Beach Pig Iron
    • Produced when high purity Pig Iron Slabs are crushed into manageable shaped blocks.
    • Flat plates up to 1200mm in diameter and 400mm thick.

External Links


Stainless steel is a corrosion resistant type of steel that is widely used across a broad variety of industries.

  • Cookware
  • Surgical Instruments
  • Home Appliances
  • Construction Material
  • Industrial tanks

Types

  • Ferritic – Chromium (10.5%), Carbon (less than 0.1%)
    • Molybdenum for enhanced corrosion Resistances
  • Austenitic – Manganese, Nickel, Nitrogen
    • Molybdenum for enhanced corrosion Resistances
  • Martensitic – Chromium, Carbon (up to 1%)
  • Duplex – Mix of Austenitic & Ferritic
  • Precipitation Hardening – Niobium, Copper, Aluminum
  • NEW TYPE (According to Summer)
    • 0.1% P in the Steel
    • Good resistance to Rusting
    • Much cheaper than regular stainless
    • HeNanXinWei Stainless Company

Common Grades

  • 304 Grade
    • 0.8% Carbon
    • at least 50% iron
    • 18/8
      • 18% Chromium
      • 8% Nickel
      • Food Grade
    • 18/10
      • 18% Chromium
      • 10% Nickel
      • Food Grade
  • 430 Grade
    • 18/0
      • Negligible amount of Nickel (0.75%)
      • Reduced Corrosion resistance
  • 200 series
    • used for food grade
    • cheaper than 304 Grade
      • less corrosion resistance

Links


Steel Production Raw Material Flow
DRI is typically used in electric arc furnaces (EAFs), while blast furnace pig iron is consumed in basic oxygen furnaces (BOFs).
R article
Steel Flowlines
Steel Finishing
http://geosteel.com.ge/company/manufacturing-facilities/
http://geosteel.com.ge/company/manufacturing-facilities/
Process
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Object name is materials-15-04127-g001.jpg

Common Types of Iron/Steel

Alloy Type Carbon % Properties Notes Uses
DRI < 1% Spongy DRI/Sponge iron is a low energy production Raw Material for BOF, Foundry
HBI <1% High Density Briquette Hot Briquetted Sponge Iron is made from compressed Sponge Iron For EAF, BOF,
Foundry
Pig Iron > 4% Brittle / Weak Higher P & S Raw Material for BOF, Foundry
Grey Iron (Cast Iron) 2 – 4% Brittle / Strong Low Melt Temp / Good Workability Cookware / Automotive parts /
Ductile Iron (Cast Iron) ~ 3% Tough / Strong Nearly as strong as carbon steel. Iron Pipes / Automotive Parts / Replacement for Steel
Crude Steel < 0.01 Ductile The end product of the BOF furnace. Raw Material for Ladle Refining
Carbon Steel < 2% Tough / Strong Low Carbon (<0.25%) – more Ductile;
Medium Carbon (>0.25%) – harder;
High Carbon (>0.6%) – Strong
Reasonably Cheap steel used for building, car manufacturing
Alloy Steel Varies Varies Stainless / Tool Steel / High Temp Steel / Weathering Steel / Abrasion Resistant Steel / Free Machining Steel Varies
Common Steel/Iron Types

Rare or Discontinued Iron/Steel Types

Alloy Type Carbon % Properties Notes Uses
Puddling Iron <0.5% Contains slag; Not Produced Anymore; Made in Puddling furnaces; Replaced with Crude Steel. Used to produce Wrought Iron
Wrought Iron <0.1% Strong and tough… Expensive (relatively) Hammered & Rolled to control the internal slag;
Rarely Produced Now; Replaced by Mild / Low Carbon Steel; Made
Cookware, fences, grates,
White Cast Iron Very Hard, Abrasion Resistant, Brittle, High Compressive Strength Lighter color in appearance when broken. Massive castings
Chilled Cast Iron Form of White Cast Iron
Pure Iron 0% Soft & Ductile Only used in Chemistry & some Medicines Basically None
Common Steel/Iron Types

Basic Overview

Producting Steel from Raw Materials
  1. Source the raw materials.
    • Coke Batteries – Coal
    • Briquette Plants – Fluorspar
    • Pelleting Plant – Iron Ore Pellets
  2. Produce low quality Pig Iron
    • Produced in Blast Furnace
  3. Convert Pig Iron into Low Carbon Steel
    • Produced in a Basic Oxygen Furnace (BOF)
  4. Convert Low Carbon Steel to Alloy Steel
    • Produced in a Crucible after the BOF
Producing Steel from Recycled Steel
  1. Source the recycled Materials
    • Heavy Melting Scrap (HMS)
    • Shredded Scrap
  2. Electric Arc Furnace
  3. Induction Furnace

Importance of Sulphur & Phosphorus

The two most common impurities that must be checked for across all ingredients to steelmaking are Phosphorus & Sulphur. These two elements unless carefully controlled can lead to the steel being weak and fracture prone.

There are specific processes to reduce these elements… Desulphurization & Dephosphorization.

  • Phosphorus (P)
  • Sulphur (S)
    • Sulphur is even worse than Phosphorus.
    • Forms Iron Sulphide at the grain boundaries which melt under high temperature.
    • Causes Red Shortness – when red hot steel with sulphur begins to fracture.
    • Causes Hot Shortness – when the internal material begins to melt and break.
    • Addition of Manganese can create Mangnaese Sulphide which is less harmful than Iron Sulphide.
  • DeSulphurization
    • Performed on Molten Pig Iron
      • either in a pig iron mixer or a torpedo car
    • Ferro Manganese helps reduce the effect of Sulphur
      • creates a Manganese Sulphide Slag
    • Lime Desulfurization
      • Calcium Oxide (CaO) or Calcium Carbide (CaC2)
      • added to the pig iron in between the Blast Furnace and the BOF.
    • Magnesium Oxide
      • can also be used
    • Aim to reduce sulphur down to 0.001%

Direct Reduced Iron (Sponge) – DRI Plant

Direct Reduced Iron Plant

Uses a different process to Blast Furnaces to create a product similar to Pig Iron. It does this without melting the iron (below 1,200 degrees), but by exposing the oxidized iron to reducing gas (hydrogen & carbon monoxide). The oxygen in the iron ore combines with the reducing gas and increases the purity of the iron.

Materials Required
  • Sized Ore
  • Concentrates
  • Iron Ore Pellets
  • Mill Scale
  • Furnace Dust
Properties
  • Highly susceptable to Rust & Oxidation
  • Can catch Fire (Pyrophoric)

Pig Iron Production – Blast Furnace – Deoxidization

Blast Furnace

A blast furnace is used to separate the iron ore into a more purified iron.

Materials Required
  • Iron Ore
    • Iron Briquettes
    • Iron ore Lumps???
  • Flux
    • Limestone
      • helps remove sulphur
    • Fluorspar ??? Maybe – Need to check
      • Lumps
      • Briquettes
      • Increases the fluidity of the flux
      • helps remove sulphur (conflicting reports on this)
    • Manganese Ore
  • Energy
    • Coke
    • Coal
Blast Furnace Factory

Pig Iron Production – HISarna Furnace – Deoxidization

HISarna Process

Developed by Tata Steel (originally by Rio Tinto) (pilot plant to be built in 2019).

Will be able to use Iron Ore Fines, and Coal Fines in order to produce pig Iron.


Pig Iron Production – HIsmelt – Deoxidization


Carbon Steel Production – Basic Oxygen Furnace – Decarburization

Basic Oxygen Furnace

A Basic Oxygen Furnace is used to burn off the extra carbon (decarburization) contained in the Pig Iron, in order to produce a higher quality iron.

By injecting a large amount of oxygen, the impurities such as Phosphorus, Carbon, Silicon and Manganese can be oxidised and removed in the slag.

Because adding the oxygen increases the heat of the melt as the element oxidize, scrap steel is added to keep the temperature under control.

Materials Required
  • Primary Material
    • Molten Pig Iron
      • from the Blast furnace
      • pig iron / DRI melted by an Electric Arc Furnace
  • Cooling Material
    • Iron Scrap, Iron Ore, Sponge Iron (DRI)
      • to assist the control of the temperature
  • Flux
    • Limestone
  • Gas
    • Oxygen
    • Argon
    • Nitrogen
Steel Types
  • Low Carbon Steel : 0.05 – 0.25% C
  • Medium Carbon Steel : 0.3 – 0.6% C
  • High Carbon Steel : 0.26 – 1.0% C
  • Ultra High Carbon Steel : 1.25 – 2.0% C
Basic Oxygen Furnace
Tapping the Low Carbon Steel

Alloy Steel Production – Ladle Furnace Metallurgy (Ladle Refining) – Secondary Metallurgy

After the Carbon steel leaves the BOF, it is poured into a ladle where a number of processes are performed in order to produce a high quality steel.

Processes undertaken in Secondary Steelmaking
  • Deoxidation – remove oxygen
    • oxygen makes steel unsuitable for welding
    • Deoxidized steel is called “Killed Steel”
  • Decarburization – remove carbon
  • Desulphurization – remove sulphur
  • Dehydrongenation – remove hydrogen
  • DeNitrogenation – remove nitrogen
    • Nitrogen causes steels to “age” or embrittle over time
  • Alloying – with Ferroalloys
  • Homogenization – thoroughly mix the liquid steel using argon jets
  • Temperature correction
  • Degassing – in a vacuum chamber
    • remove nitrogen, hydrogen, oxygen, carbon monoxide and other gasses

Materials Required for Alloying
  • Ferro Alloys
    • Ferro Aluminium
      •  removes oxygen, sulfur, and phosphorus from steel
    • Ferro Boron [Million Link]
    • Ferro Cesium
    • Ferro Chromium [Million Link]
      •  increases wear resistance, hardness, and toughness
    • Ferro Magnesium
    • Ferro Manganese [Million Link]
      • increases hardenability, ductility, wear resistance, and high-temperature strength.
      • deoxidises the steel
    • Ferro Molybdenum [Million Link]
      • lowers carbon concentration and adds room-temperature strength.
    • Ferro Nickel
      • improves strength, corrosion resistance, and oxidation resistance.
    • Ferro Niobium [Million Link]
    • Ferro Phosphorus [Million Link]
      • Free Machining Steel is made with added sulphur.
    • Ferro Silicon [Million Link]
      • increases strength and magnetism.
      • deoxidises the steel
    • Ferro Silicon Magnesium
    • Ferro Silicon Manganese [Million Link]
      • deoxidises the steel
    • Ferro Sulphur [Million Link]
      • Increases machinability by forming small chips when machined
      • Free Machining Steel is made with added sulphur.
    • Ferro Titanium
      • improves hardness and strength.
    • Ferro Tungsten
      • improves hardness and strength.
    • Ferro Uranium
    • Ferro Vanadium [Million Link]
      • increases toughness, strength, corrosion resistance, and shock resistance.
  • Other Additives
    • Bismuth
      • added to Free Machining Steel
      • makes steel easier to machine
    • Cobalt
      • increases stability and encourages the formation of free graphite.
    • Copper
      •  improves hardening and corrosion resistance.
    • Cored Wire
      • AlCa- cored wire
      • AlCaSi
        • Synthetic slag (Calcium Alumino Silicate)
        • deoxidises
    • Fluxes
      • CaO (Lime)
      • CaF2 (Fluorspar)
        • desulphurization (maybe)
        • dephosphorization
        • increase fluidity of the slag
        • increases solubility of CaO in the slag (improves desulphurization)
      • Lime
        • dephosphorization
    • Lead
      • added to Free Machining Steel
    • Selenium
      • added to Free Machining Steel
    • Tellurium
      • added to Free Machining Steel

Common Types of Alloy Steel
  • Stainless Steel – Cr, Mn, Ni
  • Tool Steel
  • Free Machining Steel (high Sulphur)
  • Weathering Steel (does not require painting)


Recycled Steel Production

External Links


When steel first started to be produced in large quantities, there were two impurities which were noted to have negative effects on the properties of steel. Since then these two properties of Sulphur and Phosphorus have been tried to be kept to a minimum in all raw materials for steel production.

Phosphorus

  • Effects re-crystallization temperature
  • Recommended levels
    • High quality Steel : P < 0.025%
    • Quality Steel : P < 0.04%
    • Common Steel : P < 0.085%

Why its Harmful

  • High Phosphorus make steel very brittle when its cold
  • Cold working of high P steel can be a problem (should be less than 0.15%)
  • Negatively effects Weldability
  • Decreases impact toughness, plasticity, ductility
  • Effects the thickness of the zinc layer when galvanizing steel.

How its Removed

Uses of Ferro Phosphorus

  • Adding Phosphorus and Copper improves atmospheric corrosion resistance.
  • Phosphorus can improve electric/magnetic properties
    • eddy current loss
    • magnetic induction
  • Can increase the hardness of steel in low alloy steels
  • Can increase the tensile strength
  • Can improve machineability

Sulphur

Sulphur exists in many of the raw materials for steel, especially in the ores and the coke. In steel it should usually be kept below 0.05%.

Why its Harmful

The compounds of sulphur in steel (MnS, FeS) both have lower melting points (FeS melts at 985 C) than the steel around it. Hotworking is usually done at 1150 C. If the sulphur compounds collect on a grain boundary in the steel (most likely effected by the type of cooling of the steel) , then they form a weakness in the steel.

  • Can make the steel weak (especially under high temperature)
    • a problem if hot working steel
    • causes cracking at high temps
    • makes steel brittle
    • in the sulphide phase it acts as a stress raiser
  • Makes the steel difficult to weld (causes weaknesses in any welding)
  • Reduces corrosion resistance
  • Lowers the melting point, especially at the grain boundaries
    • sulphides melt at a lower temp than the surrounding steel.
  • Can effect the internal and surface quality of the steel.
  • Sulphur below 0.1% does not have a great effect on the steel
  • Recommended Levels
    • High Quality Steel : < 0.03%
    • Quality Steel : < 0.045%
    • Common Steel : < 0.7%

How its Removed – Desulphurizing

  • 4 stages for removal of Sulphur
    • Blast Furnace
    • Hot Metal (HM) Pre-treatment
    • Basic Oxygen Furnace Converter
    • Secondary Metallurgy (SM) Ladle Treatment
  • Sulphur is removed in steel usually after it is turned into liquid pig iron.
    • In the transfer ladle, or charging ladle before entering the BOF
  • Difficult to remove by Oxidization
  • Desulphurizing Reagents
    • Lime  
      • Its low cost and easy availability make it an attractive reagent. But it has got some critical disadvantages. During the process of desulphurization, lime particles are continuously being covered by two precipitates namely calcium sulphide (CaS) and calcium silicate (CaSiO4). These compounds impede the desulphurizing reaction by surrounding the lime and forming thick barriers at the lime – hot metal interface. In order to reduce this growth, the grain size of the lime is to be restricted to 45 micrometer maximum. The desulphurizing reaction with lime takes place as per equation: 2CaO + 2S =2 CaS + O2.
    • Calcium Carbide
      • removes 8 times as much sulphur as lime
      • Calcium carbide was once most used desulphurizing reagent but now it is less prevalent. Complicated material handling procedures as well as stringent environment requirements associated with the disposal of slag have negatively influenced its use. Calcium carbide is also subject to layer formation similar to lime, which impedes the desulphurizing reaction. The desulphurizing reaction with calcium carbide takes place as per equation: CaC2 + S = CaS + 2C.
    • Magnesium
      • most expensive
      • removes 20 times as much sulphur as lime
      • Magnesium has a high affinity for both oxygen and sulphur. Unlike lime, magnesium is not accompanied by oxygen when it is injected into the hot metal, therefore it can rapidly react with sulphur to form magnesium sulphide. Magnesium in solution that does not react with any oxygen in the hot metal, thus removing excess oxygen. Mono injection process with magnesium reagent is less common because of the violent nature of the reaction and the relatively complicated equipment requirement. Magnesium is the only one of the three common desulphurization reagents that is soluble in hot metal and reacts with sulphur in solution. The desulphurizing reaction with magnesium takes place as per equation: Mg + S = MgS. Due to low boiling point (1090 deg C), magnesium vapourizes as it enters the hot metal. This vapour is under high pressure which is directly related to solubility. Once in ladle, the magnesium vapour forms bubbles which rise through the hot metal, dissolve and react with sulphur in solution, forming magnesium sulphide (MgS). This magnesium sulphide then floats on the top of the ladle and settles in the slag layer, which is skimmed off. The lime that is injected with the magnesium assists in dissolution by reducing the diameter of the bubbles as well as providing precipitation sites for the MgS.
    • Fluorspar
  • Slags from Desulphurization are typically up to 50% iron
Amounts of Sulphur Reduction in Different Stages of Steelmaking

Uses of Ferro Sulphur

  • Added to steel used for casting
    • especially useful for thin castings
  • Improves the chip formation when machining
    • called “Fast Cutting Steel” / “Free Machining Steel”
    • can contain up to 0.4% sulphur

Links


Terms

  • DRI – Direct Reduced Iron / Sponge Iron
    • CDRI – Cold Direct Reduced Iron
      • used for transport after product has been cooled
      • Can be a dangerous cargo.
      • Will corrode very rapidly especially with exposure to salt water
      • Special storage considerations
    • HDRI – Hot Direct Reduced Iron
      • directly used hot without cooling down
    • HBI – Hot Briquetted Iron
      • DRI that has been moulded into higher density briquettes for easier transport.
  • Furnaces
    • BOF – Basic Oxygen Furnace
    • EAF – Electric Arc Furnace

Sources of Iron

Type Carbon % Oxygen% Iron % Made In Furnace Used In Furnace Notes
Pig Iron ~4% Low ~90% BF Basic Oxygen Furnace Very Brittle
DRI ~1% Residual Ferrous Oxide ~90 – 94% Shaft Furnace EAF
IF
Very porous… can be flammable
HBI ~1% Residual Ferrous Oxide ~90 – 94% Shaft Furnace BF
BOF
EAF
IF
Compressed… less porous… safer to transport
Steel Scrap ~0.5% Low ~ 99% Ladle Metallurgy EAF
BOF
Can be used for cooling BOF charge
Mill Scale / Furnace Dust High Rolling Mill BF Sintered before addition to BF

DRI Introduction

  • Cheaper and more energy efficient
  • Good for countries with abundant supplies of natural gas / steam coal
    • India (Biggest producer)
    • Iran
    • Mexico
    • Russia
    • Kazakhstan
  • Slower than Blast Furnace.
  • Used in EAFs
  • can use lower quality thermal coal
  • can be used as replacement for Iron Scrap
  • Total Iron ~ 90 – 94%
  • Total Metallic iron ~ 85 – 90%
    • can be higher depending on the DRI process

Raw Materials

  • DRI
    • requires a high grade of Iron Ore 65 – 70%
    • can use iron ore fines
    • can use natural gas
  • Pig Iron
    • can use lower grades of Iron Ore ~ 50% and lower
    • must use high strength coke
    • 3MT of Iron Ore requires about 1Mt of Coke

Properties

  • DRI
    • ~ 90% Fe (however a larger amount of Ferrous Oxide than Pig Iron)
      • ~ 85% Metallic
    • ~ 1% Carbon
    • can be used directly in EAF
    • has more non-metallic phase of Iron
    • Cheaper than Pig Iron
  • Pig Iron
    • ~ 90% Fe
    • ~ 4% Carbon
      • must be decarburized
    • Cannot be used directly in EAF, have to reduce Carbon
    • Works better in the BOF because the extra carbon provides more energy
    • More expensive than DRI

The Process

  • DRI (natural gas method)
    • Natural gas is catalyzed into Hydrogen gas, and Carbon Monoxide
    • this gas is flowed over iron ore heated to about 900 degree.
    • The gas captures oxygen atoms from the Iron oxide, transforms the Iron Oxide into Metallic iron

Efficiency

  • DRI
    • uses lower temperatures than a Blast Furnace (Pig Iron) : 850 – 920 C
    • doesn’t require high quality Coke
    • A slower process than Pig Iron Production
    • uses cheaper fuel (natural Gas)
    • the iron is never melted, so temps lower
    • more environmentally friendly
  • Pig Iron
    • has to use Foundry / Met Coke.
    • Expensive Fuels
    • Must use temperatures hot enough to melt the iron
    • less environmentally friendly

Used In/For

  • DRI
    • low Carbon DRI
      • Induction Furnaces
    • CDRI
      • EAF
    • HDRI
      • EAF
    • HBI
      • EAF
      • Blast Furnace
      • BOF
      • Induction Furnace
  • Pig Iron
    • BOF

What is HBI

  • Premium Steel making raw material
  • Compressed form of DRI
    • Less reactive
    • safer to transport
    • doesn’t corrode as fast
  • Properties
    • 90% total Iron
      • ~ 85% metallic Iron
    • ~ 5% total Gangue (non useful elements/compounds)
    • 1.0 – 1.5% Carbon
    • 2.6 t/m3 density
    • Low content of Cu, Ni, Cr, Mo, Sn, S
    • strong briquette
    • Free Flowing Bulk material (assists in handling)
    • High Thermal & Elec
HBI
Мировые цены на DRI
Closeup of DRI Pellets

Links


Iron Type Fe% C % Si % Mn % Cr% Uses
Pig Iron 90-95% ~4% <1.5% Raw Material
Sponge Iron (DRI) 90-97% ~1% Raw Material
Cast Iron (Grey) 2 – 3.6% 1 – 3% Casting
Cast Iron (Ductile) 3.2 – 3.6% 2.2-2.8% 0.1 – 0.2% Casting
Wrought Iron < 0.1% Not Widely Used
Steel (Low Carbon/Mild Steel) 0.05 – 0.3% <0.6% <1.65% Billet, Structural Steel
Steel (High Carbon) 0.3 – 1.7% Heat Treatable
Steel (Stainless) 0.3 – 1.7% > 11% Food Grade, Low Corrosion
Steel (Alloy) 0.3 – 2% Tools Steel, Specialty Steels
ATTRIBUTES GRAY IRON DUCTILE IRON
DUCTILITY LOW HIGH
TENSILE STRENGTH 20,000 PSI – 60,000 PSI MINIMUM 60,000 PSI
IMPACT RESISTANCE LOW HIGH
THERMAL CONDUCTIVITY HIGH LOW
VIBRATION DAMPENING HIGH LOW

Introduction

Cast Irons are used primarily to produce castings. They have a carbon percentage between 2 – 3.4%, and a Silicon percentage between 1 – 3%

Cast Irons are typically cheaper to produce than Steel.

Casting with Steel is also possible and is done when a higher strength casting is desired. However steel has a higher melting point, greater shrinkage rate, and less fluidity than molten iron, making it more expensive and technically difficult.

Cast iron is produced in a Foundry. A foundry is a factory that produces metal castings.

Iron/Steel Factory Types

  • Foundry – Casting (any metal)
    • Iron Foundry – Cast Iron
    • Steel Foundry – Steel Casting
  • Ironworks
    • Smelting
      • Pig Iron Production
      • Sponge Iron Production
    • Secondary
      • Cast Iron
      • Wrought Iron
  • Steel Mill / Steel Works
    • Integrated – from iron ore to rolled product
      • iron making
      • steel making
      • casting
      • rolling billet
      • forging
    • Semi-Finished Products
  • DRI Iron Plant
    • Direct Reduced Iron
    • Hot Briquetted Iron
  • Steel Forge
    • Used for Working Hot Steel, not molten metal
    • Drop Forging (Using hammers to shape steel)
    • Rolling, Drawing (through a die), Die Forging
  • Smelter
    • Extracts metal from Ores
      • Oxides, Sulphides, Carbonates etc.
      • Purifies the metal percentage
    • Iron Smelter, FerroAlloy Smelter

Videos

Pakistan/India Cast Iron Foundry

Producing Cast Irons

  1. Method 1 : BOF Furnace
    • Pig iron is added to a BOF
    • Carbon is reduced from 4.12% until the desired Cast Iron level is achieved (2 – 3.6%)
    • FeSi, FeMn and Nodularizers are added
  2. Method 2 : Induction Furnace
    • Pig iron is added to an induction furnace
    • Low Carbon Steel scrap is added to the induction furnace
      • this will reduce the total % Carbon in the resulting melt.
    • FeSi, FeMn, and Nodularizers are added
    • Before pouring Inoculants may be added
  3. Method 3 : Cupola Furnace
    • A cupola furnace is very similar in operation to a blast furnace, but usually much smaller.
    • The furnace is charged with Coke and heated up.
    • Then scrap metal and pig iron is inserted through the top.

Use of Inoculants in Cast Iron

Inoculants provide a seed around with the crystalline graphite structure inside the iron can form.

  • Improves homogeneity of cast iron structure
  • Eliminate the formation of carbides into thin parts or salient angles
  • Direct the solidification towards the stable diagram, with graphite precipitation
  • Refine the structure (higher cells count, finer grains in the microstructure)
  • Improve mechanical properties
  • Better separate slag and metal
  • Decrease the tendency to dross formation
  • Decrease thetendency to micro-shrinkage
  • Decrease risk of gas formation
  • Decrease risk of mould/metal interface defects

Innoculants (Ba, Ca, Sr) are also added to allow the faster cooling of cast iron in order to enhance its properties. It allows the most optimum structure of the molecules in the cast iron to form, which is important in ductile iron, since the formation of nodules are key to its ductility and strength.

Inoculants can be combined with Ferro Silicon…. ie FeSiBa

Inoculants are added just before casting, as they have a time limited effect. If you add them to the melt too early, they will stop working before you are ready to cast.

Adding Inoculants to Grey Iron (Cast Iron)
Adding Inoculants to Grey Iron (Cast Iron)

Ductile Iron

Ductile iron is also referred to as nodular cast iron and is spheroidal graphite iron because the graphite within the metal takes the shape of nodules instead of elongated flakes. The rounded shape of these graphite inclusions inhibit the formation of cracks and stress points, giving the alloy enhanced ductility. The nodules are formed by adding “nodulizing elements” (typically magnesium) to the metal. Ductile iron casting is frequently used in automotive components, oil well pumps, and cable drums.

The ductility and strength comes from the nodularized graphite in the material. Ductile iron is made from Cast Iron by adding a nodularizer.

Ductile Iron is much cheaper than steel, and is better than Grey iron for applications that involve more dynamic situations (ie changes in vibration, loads, temperatures). Used in Pipes, Car Parts, Wheels, Gearboxes etc.

What do Nodularizers do?

Nodularizers are what creates Ductile iron. They create nucleus’ around which the graphite can create spherical nodules, rather than flakes.

This spherical graphite nodules are what create the ductility.

Nodularizers can be added to the melt using cored wire. Innoculants are less frequently added via cored wire, so cored wire is most often used with Ductile Iron Production.

Raw Materials Required

  • Pig iron (C ~ 4.12%)
    • Foundry Pig Iron can be used for casting as it has a higher Si value.
    • Regular Pig Iron can be used, but will have to add extra FeSi
  • Steel Scrap (Low carbon or mild steel)
    • Cannot use Cast Iron Scrap as the C is too high.
  • Ferro Silicon
  • Ferro Manganese
  • Nodularizers
    • Magnesium (Most common)
    • Cerium
    • Tellurium
  • Inoculants
    • Calcium Silicide
    • Barium
    • Calcium
    • Strontium

Grey Iron

Gray iron is casted iron with a graphitic microstructure that typically has a chemical composition of 2.5–4% carbon and 1–3% silicon by weight. The graphite forms three-dimensional flakes within the metal, which appear as fine lines on the polished surface. These graphite flakes make gray iron more brittle than its counterparts. Because of its low cost and machinability, gray iron casting is frequently used as an engineering alloy and can be found in applications such as machine tool mountings, manhole covers, and counterweights.

Used for castings where the stiffness is more important than tensile strength. Used for engine blocks, housings, decorative castings, and cookware. It is relatively low cost and has good machineability, but cannot be hot forged, extruded, or rolled. It is a fairly strong but brittle material.

The strength comes from the formation of graphite flakes in the material.

The high silicon in grey iron is the primary catalyst to force the carbon out of the solution and to form the graphite flakes that give cast iron its strength.

If you don’t use Foundry Pig Iron with its higher silicon (1.5 – 3%) than normal, then you will need to add Ferro Silicon to raise the silicon to the right level.

Raw Materials Required

  • Pig iron (C ~ 4.12%)
    • Foundry Pig Iron can be used for casting as it has a higher Si value (up to .
    • Regular Pig Iron can be used, but will have to add extra FeSi
  • Steel Scrap (Low carbon, or Mild Steel)
    • Cannot use Cast Iron Scrap as the C is too high.
  • Ferro Silicon
  • Ferro Manganese
  • Inoculants
    • Calcium Silicide
    • Barium
    • Calcium
    • Strontium
Induction Furnace Charge ENGJL-150 ENGJL-200 ENGJL-250
Foundry Pig Iron 25% 30% 25%
Foundry Returns 40% 35% 35%
Cast Iron Scrap 30% 20% 15%
Steel Scrap 5% 15% 25%
Grey Iron Casting Grades – Typical Compositions

External Links


Overview

Iron Pyrite (FeS2) is a mineral compound between Iron and Sulphur.

  • FeS2 – Pyrite
    • Chemical Composition
      • Iron (Fe) : 46.55%
      • Sulfur (S) : 53.45%
    • Also known as
      • Fools Gold
      • Bravoite
      • Cobaltian Pyrite
  • FeS – Iron Sulfide

Usage

  • Raw material for the production of Sulphuric Acid
    • Iron Pyrite is roasted to release the Sulphur.
  • Raw material for Steel production (Roasted Iron Pyrite)
    • After roasting the Iron Pyrite turns to Haematite Fe.
      • Roasting causes the Sulphur to offgas leaving the Iron in oxide form.
    • This Haematite has S ~ 0.85% (normal Iron Ore is ~ 0.2%)

Feature Hot Rolled Cold Rolled
Price Cheaper due to less processing More Expensive
Dimensions Less Precise due to heat expansion More accurate, closer tolerances
Surface Finish Scaled surface due to cooling Shrinkage Smoother, oily touch
Corners & Edges Rounded edges Sharp true square edges
Strength Strong Stronger
Applications Construction
Groundworks
Civil Engineering
Car Manufacture
High precision manufacturing
Where Aesthetics are important

Hot Rolled Steel Coil (HR Coil)]

  • Steel that has been roll-pressed at very high temperatures (> 900°C)
  • Cheaper than cold rolled steel
  • Used where the aesthetic properties are less important .
  • Used in Civil engineering
  • Cooling done at room temperature to reduce work hardening stresses
  • Cooling creates minor distortions & imperfections
    • surface finish
    • rounded edges
Hot Rolled Steel Coil

Cold Rolled Steel Coil (CR Coil)

  • Steel that has been hot rolled initially, and then rolled again at close to room temperature
  • Better strength, better tolerances, better surface quality
  • Used for where higher dimensional tolerances are required.
  • More suitable for extra processing like grinding turning & polishing
  • More expensive due to the extra processing involved
Cold Rolled Steel Coil

External Links


A PLATTS Iron Ore Formula price is determined by S&P Global PLATTS Iron Ore index.

The PLATTS Price list is a subscription only resource.

Million Link get daily Platts Price Updates that are sent to Charles.

Page 18 of the Platts Price Index

Reading a Platts Daily Message

05/07/2022
Platts62 $114.30 (+4.40) MTD $113.55
MB65 $126.30 (+1.10) MTD $127.17
MB65/P62 $12.00 (-3.30) MTD $13.62
PlattsLP 10.00c (unch) MTD 10.00c

Message received from Platts

  • Platts62 $114.30 (+4.40) MTD $113.55
    • Platts62 : Platts 62% Iron ore Index
    • $114.30 : daily Price
    • +4.40 : change in Price from yesterday
    • MTD : Month to Date
    • $113.55 : The average price for the Month To Date
  • MB65 $126.30 (+1.10) MTD $127.17
    • MB65 : Metal Bulletin 65% Iron Ore Index
  • PlattsLP 10.00c (unch) MTD 10.00 c
    • PlattsLP : Platts Lump Premium
    • 10.00c : 10 cents (USD0.10)
    • (unch) : unchanged
    • MTD : Month to Date

Giving a Formula Bid Price using Platts

  1. Select the Index your Customer/Supplier wish to use
    • IODEX : Platts Iron Ore Index
      • 62% Fe CFR North China
      • 65% Fe CFR North China
      • 58% Fe CFR North China
    • TSI : The Steel Index (CFR Tianjin) – another index
      • Iron Ore Fines 62% Fe CFR China
    • IOPEX : Platts Iron Ore Port Index (for Fines)
      • IOPEX 62%-Fe FOT North China
    • MB – metal bulletin index
  2. Determine the Discounts you wish to offer to be based on :
    • Inspection Analysis Quality
      • Sulphur content
      • Phos. content
    • Country of Origin
    • Reliability of Supplier
    • Final price that the Customer is willing to accept
  3. For Lumpy
    • Platts Premium – ie 85% of the Platts Price
    • Lumps Premium – ie 70% of the Platts Lump Premium
  4. For Fines
    • Platts Premium – ie 85% of the Platts Price
  5. Offer a bid price
    • based on the percentage of the Platts Index Prices & Premiums
  6. Calculation Method : Offer a price date / date range
    • Which is the key date
      • Date of cargo arrival
      • Date of cargo departure
      • Midpoint date
    • Which price base on date is used
      • Will be determined by the Customer’s requirements
      • Exact Date of arrival
      • average Platts Price for the Arrival month
        • eg. if Cargo arrives on 1st July, then need to wait until August to get the average price for the month of July
      • prior 15 days price average
      • prior 30 day price average (rolling month average price)
    • Platts will publish the average price for each month

Example – Lumpy

  • Bidding on Iron Ore Lumps 62%
    • IODEX 62% Fe CFR North China
    • 85% discount on the Index
    • 70% discount on the Lump Premium
    • Arriving on 30th June 2022
    • Use the Rolling Month Average for the date Cargo Arrives
  • Sample Calculation of the Final Price after Cargo Arrived
    • IODEX 62% Fe CFR North China : USD130
    • Final Price = Platts Index Price * 85% + Platts Lump Premium * Fe Content * 70%
    • (130 * 85%) + (0.1847 * 62 * 70%)
    • USD 118.52
  • Bid Offer to be made to the Supplier
    • 85% discount on the IODEX 62% Fe CFR North China Index + 70% discount on the Platts Lump Premium
    • Calculation Method : Rolling Month average price for the arrival date
      • eg. if Cargo arrives on 1st July, then need to wait until August to get the average price for the month of July
      • Platts will publish the average price for each month
    • Payment terms : 90/10
      • we pay 90% on receipt of documents
      • we pay 10% on the final settlement date after cargo arrives

Example – Fines

  • Bidding on Iron Ore Fines 62%
    • IODEX 62% Fe CFR North China
    • 85% discount of the Index
    • Arriving on 30th June 2022
    • Use the Rolling Month Average for the date Cargo Arrives
  • Sample Calculation of the Final Price after Cargo Arrived
    • IODEX 62% Fe CFR North China : USD130
    • Final Price = Platts Index Price * 85%
    • (130 * 85%)
    • USD 110.5
  • Bid Offer to be made to the Supplier
    • 85% discount on the IODEX 62% Fe CFR North China Index
    • Calculation Method : Rolling month average price for the arrival date
      • Platts will publish the average price for each month
    • Payment terms : 90/10
  • Bid Offer to be made to the Supplier
    • 85% discount on the IODEX 62% Fe CFR North China Index
    • Calculation Method : Average Platts Price for the Arrival month
      • eg. if Cargo arrives on 1st July, then need to wait until August to get the average price for the month of July
      • eg. if Cargo arrives on 30th July, then need to wait until August to get the average price for the month of July
      • Platts will publish the average price for each month
    • Payment terms : 90/10

Example – Misc

  • Platts index price : USD 100
    • Buying : Supplier Price (85%) : USD 85
    • Selling : Customer Price (90%) : USD 90
    • Gross Profit : USD 5.00
  • Platts index price : USD 50
    • Buying : Supplier Price (85%) : USD 42.5
    • Selling : Customer Price (90%) : USD 45
    • Gross Profit : USD 2.50

Example : Index Linked Bid to Supplier

Commodity Shipment of Sesa 62.0% Fe Fines and lumps
Origin Liberia
Supplier Western Clusters Limited, Liberia (A Vedanta Group company)
Quantity One shipment containing below:
62.0% Fe Fines – 55,000 MT +/- 10% at Sellers option
45,000 MT Lumps  8-40mm 90% min
10,000 MT Fines    8mm max
Laycan 05th August 2022 – 15th August 2022
Latest Sailing Date (LSD) End August 2022
Quality & Specification
Delivery Term CFR Tianjin port
Price Price shall be Indexed Linked, based on average of all quotes published over Quotation Period (QP) for Platts 62 Fe IODEX CFR North China Basis X (100 – 15 in ‘%’) for the fines;

Price shall be Indexed Linked, based on average of all quotes published over Quotation Period(QP) for Platts 62 Fe IODEX CFR North China Basis X (100-10 in ‘%’) plus 70% lumpy premium;

The seller shall charter vessel on open book basis, the freight difference shall be refunded to the buyer or paid by the buyer vice versa if the buyer selects to discharge at a China port other than Tianjin port for lumps.

Quotation Period (QP) The month of the vessel arrival date
Payment Terms L/C at sight.
To be opened for 120% of the provisional price & issued on or before 30th July 2022
98% provisional payment upon shipment.

100% 2nd provisional payment upon finalization of QP in case of Index Linked bid
Both payments under LC.
LC to provide for confirmation at the cost of beneficiary.
LC validity – 90 days after LSD

Provisional Price 62.0% Fe Fines:
Price shall be based on average of all quotes published in QP for Platts 62 Fe IODEX CFR North China Basis  X (1 – Discount in ‘%’),

Discount rate is specified in the “Price” clause above.

Premium & Penalty 62.0% Fe Fines :

For Fe above 62.5% : Fe – Bonus shall be single pro-rata
For Fe below 62.0% : Fe – Penalty shall be double pro-rata

For excess Alumina (Al2O3) and Silica (SiO2):
At the rate of US$ 0.05 per dry metric ton for each 1% in excess of guaranteed maximum.

For excess Phosphorus (P) and Sulphur (S):
At the rate of US$ 0.05 per dry metric ton for each 0.01% in excess of guaranteed maximum.

For Size:
At the rate of US$ 0.05 per wet metric ton on natural basis fractions pro-rata shall be applied to the quantity in excess of guaranteed maximum.

Rejection Fe < 60%
S > 0.5%
Discharge Rate For Vessels 45,000 DWT and above – 20,000 MT
Quality, Sampling & Analysis Loadport Analysis by SGS is for provisional L/C payment, CIQ at discharge port is final.
Other terms and conditions As per our standard agreement & all Quarantine requirements at discharge port if any to be on buyers account.
BID Submission & Validity Bid should be valid till 13st July 2022, 1900 hours IST

ISRI (North America Institute of Scrap Recycling Industries)

  • HMS
    • usually traded as a blend of HMS1&2
      • Premium Blend : 80/20
      • Mid Grade : 70/30
      • Low grade : 60/40
    • HMS 1
      • Min Thickness : 6.3mm (1/4″)
      • Does NOT contain Galvanized and blackened steel
      • ISRI SPEC 200 (HMS 1)
        • Wrought iron and/or steel scrap 1/4 inch and larger in thickness. All pieces must be smaller than 60×24 in.
      • ISRI SPEC 201 (HMS 1)
        • Same as ISRI 200 except pieces must be smaller than 36×18 in.
      • ISRI SPEC 202 (HMS 1)
        • Same as ISRI 200 except pieces must be smaller than 60×18 in.
    • HMS 2
      • Min Thickess : 3.15mm (1/8″)
      • Does contain Galvanized and blackened steel
      • ISRI SPEC 203 (HMS 1)
        • Wrought iron and/or steel scrap, black and galvanized, 1/8 inch and larger in thickness.
      • ISRI SPEC 204 (HMS 1)
        • Same as ISRI 203 except pieces must be smaller than 36×18 in.
      • ISRI SPEC 205 (HMS 1)
        • Same as ISRI 204 except it may contain automotive scrap, except for thin guage material.
      • ISRI SPEC 206 (HMS 1)
        • Same as ISRI 205 except pieces must be smaller than 60×18 in.
  • Shredded Scrap
    • Homogeneous iron and steel scrap, magnetically separated, originating from automobiles, unprepared No.1 and No.2 steel, miscellaneous baling and sheet scrap.
    • Homogeneous shredded steel scrap processed through a shredder and magnetically separated originating from automobiles, appliances, heavy melting steel, and miscellaneous sheet steel.
    • All obvious non-metallics and copper should be manually removed. Total copper content must not exceed 0.30%.
    • PROHIBITED :
      • Municipal scrap,
      • incinerator scrap,
      • lead-coated steel,
      • vitreous enameled materials,
      • tin cans or tin-plated materials,
      • copper-clad or plated steel,
      • electric motors,
      • reinforcing bar or rebar,
      • turnings,
      • borings,
      • high alloy steel,
      • wire,
      • excessive fluff,
      • nonmetallic
  • Average density 50 – 70 pounds per cubic foot.
  • Rail Scrap
  • Auto Bundles
  • Busheling Scrap
  • P&S : Plate and structural scrap
    • P&S in the scrap industry
      • is a cut grade of ferrous scrap
      • to be free of any contaminates
      • commonly associated with building construction and demolition,
      • can found amongst electric arc furnace casting and foundry material.
      • The 4 ft. length distinguishes it as prepared material, which means that a scrap yard can process it using less machinery on site.
    • Plate and structural scrap is comprised of clean
      • open hearth steel plates,
      • structural shapes,
      • crop ends,
      • shearing ,
      • or broken steel tires.
    • Dimensions not less than 1/4 inch thickness, not over 5 feet in length and 18-24 inches in width.
    • As per ISRI Phosphorus or sulphur not over 0.05 percent,.
  • GI Scrap
    • Galvanized Iron Scrap

Japanese Steel Scrap grades

Grade Thickness Width x Length Unit Weight
HS 6 mm 500 x 700 mm 600kg / m³ 
H1 6 mm 500 x 1200 mm 1000kg / m³ 
H2 3 – 6 mm 500 x 1200 mm 1000kg / m³ 
H3 1 – 3 mm 500 x 1200 mm 1000kg / m³ 
H4 1 mm 500 x 1200 mm 1000kg / m³ 

Other Resources

  • See this book
    • Seafile\MillionLink-Public\Books\SteelIndustry\SCRAP-2022-ISRI Scrap Specifications Circular.pdf”
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Million Link is an International Trading Group based out of Hong Kong with branches in Tianjin (China), India, Pakistan, Peru, USA and Egypt.
We specialize in Ferroalloys and have been supplying raw materials to the Steel Industry since 1997.
We are ISO 9001:2015 Quality Management System certified and we are an A-Licensed exporter of FerroAlloys.
Updated : 2025-10-10