Energy-efficient electric melt shop and continuous caster for high-quality slabs at PT. Gunung, Indonesia successfully commissioned by SMS group

SMS group? has successfully commissioned an electric steel plant with efficient environmental technology and a single-strand continuous slab caster at PT. Gunung in Bekasi (West Java province), Indonesia.

The melt shop with the ARCCESS? electric arc furnace and a ladle furnace is designed for an annual production of 1.2 million tons of steel to be cast into slabs on the new continuous caster.

SMS group supplied the complete basic and detail engineering, the mechanical and electrical core components and the supervision of erection and commissioning. The SMS group scope of supply furthermore includes the complete X-Pact? electrical and automation system including Level 2 automation and commissioning according to the tried and tested “Plug&Work” concept.

B.K. Dutta, General Director: “The new works is of high strategic importance to us. Until now, we had to purchase slabs. By producing slabs ourselves, we do not only achieve a higher creation of value, but also ensure high quality thanks to the plants supplied by SMS?group. Of course, all our plants are energy-efficient and easy on the environment. That is why we purchased them from SMS group.”??SMS group supplied an 120-ton ARCCESS? electric arc furnace and a 120-ton ladle furnace for the new steelworks complex. The range of charge materials for the electric arc furnace includes scrap, HBI (Hot Briquetted Iron) and hot metal.

Electric arc furnaces of the ARCCESS? series are optimized for highly efficient use of electrical and chemical energy. The electric arc furnace at PT. Gunung is equipped with the latest generation of the patented SIS (SMS Injection System) oxygen injection system, which combines innovative injection and burner technologies. This concept proves its worth through high productivity while keeping production costs low.

SMS group has equipped the electric arc furnace with a gas cleaning system. The dust-laden gases arising at the furnace and ancillary plants during the steelmaking process are efficiently captured and reduced to a residual dust content of less than 10 mg/Nm3. The system is operated by speed-controlled fans which consume a minimum of electrical power as the suction capacity is optimized depending on the specific process.

The continuous caster is designed for the production of slabs with thicknesses of 220 and 250 millimeters and widths from 800 to 2,100?millimeters. The range of grades produced will comprise structural steels as well as pipe and heavy-plate grades.

The segments are equipped with STEC-Roll? technology. Rolls of this technology optimize the casting process and set new standards for cost-effective maintenance and servicing, thanks to their long service life and the possibility of re-using them.

The continuous caster is equipped with modules from the ISC? (Intelligent Slab Casting) package, which ensure optimal plant productivity and slab quality. These modules include the hydraulically actuated resonance oscillation system, the mold with remote-adjustable narrow faces for changing the slab width during casting, as well as the Mold Monitoring System.

The horizontal part of the strand guide system uses position-controlled CyberLink segments. Dynamic Soft Reduction? in combination with the metallurgical process model DSC? (Dynamic Solidification Control) to control secondary cooling allows the production of slabs with perfect internal quality.

On the new plant, PT. Gunung produces high-quality slabs for further processing in its own Steckel and heavy plate mills.

At the Bekasi location, PT. Gunung operates a long-product line for the production of sections and wire rods, as well as a flat-product line for the production of heavy plates and pipes. All major production lines were supplied by the SMS group.

Source: SMS Group is not responsible for the content of third party sites.


The MEPS world all products composite steel price increased in June by 0.6 percent – the sixth consecutive monthly rise. However, amid a modest global demand outlook, MEPS predicts that steel prices are now very close to their peak for the current cycle.

The North American average price advanced by 5.8 percent in June as trade petitions and supply shortages continued to put upward pressure on domestic selling figures. From MEPS research, this month, the consensus view from steel industry participants is that selling figures are likely to stabilise, at best, in the near term. Purchasing activity, in fact, is expected to soften in the second half of the year.

In June, both Asian and European selling values fell, when measured in US dollar values, by 3.4 percent and 2.3 percent, respectively, month-on-month.

In China, steel prices are likely to come under negative pressure in the second half of the year. The steel sector has been repeatedly urged to reduce excess manufacturing capacity. However, we detect little evidence to suggest that significant production cuts are being made.

In fact, in response to domestic price surges at the start of the year, local mills ramped up output by starting up idled facilities. This is borne out from information issued by the China Iron and Steel Association that domestic daily steel output in mid-May rose to its highest level since June 2015.

As a consequence, more steel will be made available for export. This is likely to put downward pressure on steel selling figures around the world as low-priced exports from China are likely to become available in global markets.

Southeast Asia remains one of the few regions of the world in which steel demand exceeds domestic supply. This makes this area a prime target for low-cost Chinese imports and the prospect of declining selling values.

With the likelihood of increased global supply of steel from the mills and expanding availability, a continuation of the steel price revival is limited.

Source: MEPS International Steel Review – June 2016 Issue


According to MEPS, domestic prices across the Nordic region are near a peak. Hot rolled coil sellers expect to be busy until the summer vacation begins.

Hot rolled plate selling figures rose as delivery lead times extended and supply tightened. Furthermore, imports became scarcer and more expensive.

Material availability of cold rolled coil became more restricted. Some European producers state that their rolling schedules are full throughout the third trimester. This helped selling figures to rise but further increases are unlikely, in the short term.

Galvanised coil transaction values continued to climb, month-on-month. Sales to the automotive sector are steady and supply is quite tight. Buyers are considering placing orders from Asian mills but such material would not arrive until September or October.

Drawing quality wire rod prices rose again, month-on-month. However, demand is now calmer and the price trend is expected to flatten out.

Delivery lead times for medium sections and beams are stretching. This helped European mills to secure advances in prices. Demand from the construction sector is strong. Limited availability was exacerbated by speculative buying while prices were climbing.

Rebar selling figures are believed to have peaked. Difficulty in sourcing material has eased a little. Prices are likely to slide in the near future in response to lower scrap costs.

Delivery lead times for merchant bar are very short. Selling figures are quite stable but some regional producers have already conceded small discounts.

Source: European Steel Review Supplement – June Edition


Although European strip product makers were determined to sustain upward price momentum, in June, it appears to have stalled, for now, according to MEPS. In a number of countries, buyers resisted the mills’ attempts to achieve higher basis values for late third quarter deliveries, despite support from trade defence measures. No domestic demand improvement was noted. Steel and raw material prices continued to tumble in Asia. As global export offers fall, buyers’ interest in purchasing from overseas is returning. However, local delivery lead times continue to be extended and problems at some production sites raise the possibility of supply disruption in the region.

German buyers report that mills are fully loaded at present. Short-term demand cannot always be satisfied, but orders for delivery later in the year are being taken. Service centres buy only for their immediate needs as they expect prices to decline later in the year. Underlying demand is relatively stable. Steelmakers would like to gain further basis increases. For the moment, figures are unchanged from a month ago.

Despite activity in the French market remaining subdued, prices continued to increase, in late May, by around €20 per tonne. It is still difficult for buyers to obtain material, especially coated coils. Delivery lead times from most producers stretch to August. Consequently, new orders will not be delivered until after the long summer vacation.

After escalating significantly in May, on an absence of import alternatives, the positive movement in Italian basis values has largely stalled. Buyers are not sure whether this is just a short interruption of the upward cycle or a signal of forthcoming weakness. Service centres and end-users, who built up stocks over the last few months, are able to wait before re-ordering at the higher values demanded by the mills. Reduced quantities are available from European suppliers because of production problems. However, customers expect Chinese offers to be renewed at competitive rates quite soon.

Further price rises were noted in the UK. Changes to the euro/sterling exchange rate may start to alleviate further increases from continental European sources. A number of customers experienced sourcing difficulties as their mainland European suppliers reduced allocations. The uncertainty surrounding the future of Tata Steel’s UK facilities created caution over forward order placement with that company.

Belgian demand is satisfactory. Prices stabilised in late May/early June at a slightly higher level than previously reported, for material to be delivered in September/October. Service centres bought a little more than usual, to cover longer delivery lead times. Resale values are climbing on a regular basis, alongside mill hikes. Distributors report that more end-users are specifying material of European origin.

The recent rapid price advances in the Spanish market levelled out, in June. Domestic producers accepted orders up to September at the figures quoted in our May report. July/August deliveries were said to be fully booked because of a lack of material from overseas. However, as service centres have rebuilt their inventories they do not need to re-order substantial quantities immediately. Moreover, buyers believe that renewed interest in imports could result in discounts from the European mills, later in the year, now that local selling values have become so high.

Source: MEPS – European Steel Review – June 2016 Issue

Midrex and Paul Wurth Awarded Project for HDRI/CDRI Combination Facility

Luxembourg & Charlotte, NC, 14 June 2016. Algerian Qatari Steel (AQS) has awarded Midrex Technologies, Inc., and its consortium partner Paul Wurth, a contract to supply Equipment, Engineering and Technical Services for one of the world’s largest direct reduced ironmaking (DRI) plants. The new natural gas-based MIDREX NG? DRI plant will be located in Bellara, Algeria, 375 km east of Algiers. AQS is a joint venture between Sider Co. and National Investment Fund (51%) and Qatar Steel International (49%). The MIDREX? Plant will be part of the overall steel complex that will produce 2.0 million tons of re-bar and wire rod as finished products.

AQS’s new MIDREX NG? DRI Plant will be designed to produce 2.5 million tons of DRI with the capability to vary its production to produce hot direct reduced iron (HDRI) and/or cold direct reduced iron (CDRI) simultaneously without stoppage of production.

HDRI will be fed via an Aumund hot transport conveyor to a new EAF meltshop located adjacent to the MIDREX? DRI Plant allowing for greater EAF productivity and energy savings; CDRI can also be produced for additional onsite use. The new AQS DRI Plant will provide the AQS steelmaking facility with greater production flexibility to produce high quality, low impurity steels as well as decrease their demand for imported scrap. Plants using MIDREX? DRI technology transport more HDRI per year and at hotter temperatures than any other commercial technology available.

Benefits of Hot Direct Reduced Iron

There are two main benefits of charging HDRI to the EAF: lower specific electricity consumption and increased productivity. The energy savings occur because less energy is required in the EAF to heat the DRI to melting temperature, resulting in a shorter overall melting cycle.

Additional benefits of charging hot DRI (HDRI) to the EAF are:

Less energy required to heat the DRI to melting temperature
Shorter overall melting cycle
Reduced electrode consumption
Reduced tap-to-tap time up to 20% compared to charging DRI at ambient temperature
Reduced electricity consumption about 20 kWh/t liquid steel for each 100° C increase in DRI charging temperature
Lower overall emissions due to lower electricity demand and reduced need for charge carbon.
About Midrex

Midrex Technologies, Inc. is an international process engineering and technology company providing steelmakers with commercially proven solutions for greater profitability and has been the leading innovator and technology supplier for the direct reduction of iron ore for more than 40 years. The company offers eco-friendly technologies for ironmaking that provide high productivity, outstanding product quality, and cost competitiveness. Midrex has built its foundation upon the MIDREX? Direct Reduction Process that converts iron ore into high-purity direct reduced iron (DRI) for use in steelmaking, ironmaking and foundry applications. Each year, MIDREX? Plants produce about 60 percent of the world’s DRI.

For more information, visit

About Paul Wurth

Headquartered in Luxembourg since its creation in 1870, Paul Wurth, now a member of the SMS Group, has transformed itself over the last decades into an international engineering company. As a result of its considerable know-how and its effective policy of innovation, the Paul Wurth Group is today one of the world leaders in the design and supply of the full-range of technological solutions for the primary stage of integrated steelmaking.

With about 1700 employees worldwide, the Paul Wurth Group operates international entities and affiliated companies in the main iron and steelmaking regions of the world.

For more information please visit:

Source: Paul Wurth is not responsible for the content of third party sites.

Unique new cold rolling mill for Shanghai STAL’s high-end products

Fives and Shanghai STAL Precision Stainless Steel Co., Ltd. signed a contract for design, manufacturing and supply of a unique new 20Hi cold rolling mill. The new mill is designated for STAL’s new stainless steel line in Shanghai’s Xin-Zhuang industrial zone in China.

STAL, a joint venture between USA’s Allegheny Ludlum and China’s Baosteel Group Corporation, is specializing in manufacturing and marketing precision-rolled stainless strips. ?Aiming for increasing its current capacity of precision stainless steel strips, STAL has decided to build a new cold rolling workshop, which includes a new bright annealing line and a new 20Hi cold rolling mill, to be commissioned in 2017.

Fives will design and deliver to STAL a new 20Hi cold rolling mill with the production capacity of just over 80,000 metric tons per year. From input strip 1.5mm thick it will be able to roll strip down to 0.40mm and up to 1.2mm thick. Maximum strip width is 1,250mm, and it will be able to produce at the minimum thickness on the full width.

Terminal equipment for the mill will be produced locally by Fives’ subsidiary in China. The design of the mill that combines ultra-thickness and a full width is currently unique in the world. The new line and mill will produce ultra-thin stainless steels for high-end applications, such as smartphones and tablet computers.

Fives has been specializing in cold rolling mill design and manufacturing for more than 60 years, being a technological pioneer and a partner for many international steelmakers worldwide. In 2006, Fives already designed and delivered to Shanghai STAL a first 20Hi cold rolling mill for its Huajin Plant.

Source: Fives Group is not responsible for the content of third party sites.