Marketing, Manufacturing and Economics: The Foundation
for the Competitiveness of a Modern Enterprise
Hanna Andrushchenko
a
, Evhen Chuprinov
b
, Victoria Hryhorieva
c
, Victor Batareyev
d
and Iryna Lyakhova
e
State University of Economics and Technology, 5, Stepana Til`gi str., Kryvyi Rih, 50006, Ukraine
Keywords: Steel Production, Technology, Competitiveness, Marketing, Economic Efficiency.
Abstract: The world market of rolled metal products has been analyzed, the competitiveness of PJSC "ArcelorMittal
Kryvyi Rih" has been studied on it. It is concluded that entering new sales markets and stable development of
an enterprise in a changing market environment is possible through the introduction of new technologies with
minimal costs. A new parameter of the oxygen-converter process is proposed - the radiation temperature of
the surface of the reaction zone. The use of this parameter will reduce the number of blows during steel
smelting. The economic efficiency of the steelmaking process at a metallurgical enterprise is calculated. A
logical relationship has been built between the defining links of modern metallurgical production - from
marketing to economic feasibility, using the example of new methods of controlling the steelmaking process.
A new mechanism for the efficient operation of a metallurgical enterprise has been developed, which is based
not only on production elements, but also on the active involvement of marketing and economic solutions.
1 INTRODUCTION
In today's market conditions, metallurgical
enterprises are very important for their successful
operation not only to develop and implement new
production technologies, but also to be able to present
their developments, visualizing them on social
networks, booklets and other media to increase
potential consumer interest in their products.
Demand for steel is currently deteriorating
sharply, particularly in China as a world leader in the
metallurgical market, and prices for raw materials and
finished products are falling. At the same time, China
in 2022 intends to limit steel production to last year's
level. It seems that the center of influence on the
market has moved from the Asian region.
Protectionism is strengthening and taking on new
forms with the EU-US agreement. Large restrictions
are to be expected, including on higher processed
products.
a
https://orcid.org/0000-0002-7778-5622
b
https://orcid.org/0000-0001-8605-3434
c
https://orcid.org/0000-0002-1397-0546
d
https://orcid.org/0000-0002-2991-9892
e
https://orcid.org/0000-0001-7589-8351
REPAS's forecast for the situation in the last
quarter of 2021 turned out to be true in terms of
stability. There were many downtime in November
and December. In 2022, new production facilities will
appear on the market. It will be interesting to see how
they find consumers in the face of increasing trade
restrictions.
Given this, the purpose of this article is to study
and analyze global trends in the ferrous metallurgy
market, as well as to develop new integrated methods
and marketing activities for the interaction of various
departments of one enterprise.
The purpose of the article is revealed in the
following tasks:
- to analyze the world market of rolled metal and
determine the level of competitiveness of PJSC
"ArcelorMittal Kryvyi Rih" on it;
- find new ways to implement the latest
metallurgical technologies with minimal production
and non-production costs;
Andrushchenko, H., Chuprinov, E., Hryhorieva, V., Batareyev, V. and Lyakhova, I.
Marketing, Manufacturing and Economics: The Foundation for the Competitiveness of a Moder n Enterprise.
DOI: 10.5220/0011345600003350
In Proceedings of the 5th International Scientific Congress Society of Ambient Intelligence (ISC SAI 2022) - Sustainable Development and Global Climate Change, pages 145-154
ISBN: 978-989-758-600-2
Copyright
c
2022 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
145
- calculate the economic efficiency of the steel
production process at the metallurgical enterprise;
- on the basis of research results to build a logical
connection between the defining links of modern
metallurgical production from marketing to
economic feasibility;
- to develop a new mechanism for the effective
operation of the metallurgical enterprise, which is
based not only on production elements, but also on
the active involvement of marketing and economic
solutions.
The solution of the above tasks will allow to
develop new mechanisms for the operation of a
metallurgical enterprise, including the synergy of
marketing and economics, in today's highly
competitive environment can become an important
element of effective interaction between the
manufacturer and the end consumer.
2 MARKETING RESEARCH
We will conduct a brief marketing analysis of the
modern world metallurgical market. Recent trends in
global change (in particular, the events of 8-12
November 2021 and as a result the agreement
between the EU and the US on import quotas, the
exclusion of European steel products and aluminum
from the 25 % duty under section 232 of 1 January
2022) (Holappa, 2021) in the metal market have had
a significant impact on the state of the global mining
and metallurgical complex.
Interestingly, it was the United States that took the
initiative in this agreement, as from December 2021
the EU planned to introduce a second package of
measures in response to a total of 3.6 billion euros per
year to compensate for losses from US customs tariffs
in 2018. The first package worth a total of 3.6 billion
euros a year was introduced in 2018, and the second
was waiting for its time. And now, instead of a 25%
duty, European plants will be able to supply products
to the United States duty-free, but within quotas.
Among the points of the high-profile deal, it is
important that Europeans offer Americans:
- refusal to introduce compensatory measures;
- refusal to appeal against tariffs in the WTO,
including issues between Boeing and Airbus;
- long-term agreements on joint counteraction to
surplus capacities in the world steel industry, as well
as on promotion of decarbonization.
Such events, in turn, contribute to the desire of
full-cycle enterprises to take appropriate measures,
such as reducing emissions and expanding the
production of electric steel, which is made possible
by keeping scrap within their country, creating a scrap
procurement business. Increasing the use of scrap and
stimulating such a production path is the most
affordable way for steel companies seeking to ensure
vertical integration and occupy their niche in the
scrap market.
Thus, according to (Kim, 2022) in the fall of 2021
in the US, manufacturers bought their own scrap
companies in order to provide themselves with scrap,
for example, BlueScope bought MelalX for $ 240
million, Cleveland Cliffs bought for $ 775 million
Ferrous Processing and Trading Company (FPT) to
continuously provide scrap resources for the
operation of its planned expansion facility.
By collecting and processing 3 million tons of
scrap per year, FPT earns $ 100 million. EBITDA per
year. That is, the multipliers to EBITDA at the level
of more than 7.0 in scrap harvesters are much higher
than the average multiplier in steelmakers - 5.0. In
addition, the case with MelalX is also interesting in
that the sellers are the family of American
businessmen Rifkin. They founded MelalX from
scratch in 2012 with $ 1 billion in proceeds from the
sale of the same OmniSource Corp scrap business to
OmniSource Corp. Also, in the United States, the
scrap procurement business is in high demand.
Steelmakers are actively entering the upstream to
provide themselves with raw materials, and
entrepreneurs are operating on a business model
suitable for replication and scaling.
According to the American media, in the United
States, along with plans to reduce emissions and
expand production of electric steel, there is an
increased demand for scrap assets. In mid-2020, Steel
Dynamics signed another agreement to buy a waste
scrap company in Mexico - Zimmer, which processes
500 thousand tons of scrap per year. Active M&A
processes take place within the procurement industry
between operators. In general, it is natural that the
most affordable way to reduce emissions now is to
increase the use of scrap, as stimulating such a
production path leads to vertical integration and
participation in the scrap market, as discussed above.
Concerns about steel producers in the United
States about providing their assets with scrap are due
to the fact that they see for themselves the risks
associated with possible increases in scrap prices, its
deficit. For example, in China in the first half of 2021,
scrap consumption increased by 47%. That is, in the
United States, a region that is one of the largest
exporters of scrap, steel producers fear possible
difficulties with raw materials. The activity is not
aimed at purchasing by iron ore raw materials assets
ISC SAI 2022 - V International Scientific Congress SOCIETY OF AMBIENT INTELLIGENCE
146
or coal assets. Scrap becomes the central object of
mergers and acquisitions.
A fateful decision to ban scrap exports may also
be made in the EU in the near future. Demand for steel
is weakening in these countries, so, for example,
traders are trying to export g/k roll to Egypt to unload
their warehouses.
Turkish producers fear that because of the
agreement they will lose in competitiveness to
European exporters, who have received a significant
advantage in the form of the absence of a 25 % duty.
Turkey buys scrap in the EU, ie loses in the cost of
raw materials. Therefore, the Turks may lose their
small exports to the United States.
By the way, Ukraine can lose in the segment of
pipes on the American market, for which seamless
pipes were the main export item to the United States.
The issue of negotiations on Ukraine's exclusion from
Section 232 was periodically raised, but this remained
at the level of initiatives. It is advisable to intensify
this direction, because the more countries conclude
such agreements (Canada, Mexico, Brazil, Argentina,
and now the EU), the greater the volume of exports
will be lost by domestic producers.
At the same time, financial analysts trace the
probable consequences of this trend of increasing
demand for scrap assets, the most important of which
is the inverse relationship between the role of steel
companies in the scrap market and the supply of scrap
to foreign markets. After all, producers have become
interested primarily in providing themselves with
their own raw materials, and only then - in sales to the
free market and for export. At the same time,
increasing the concentration and entry of steel
companies into the scrap market in the long run will
lead to a reduction in world trade in scrap. Now this
trend is typical for the United States, but its
occurrence is predicted in other regions (Kim, 2022).
According to (Holappa, 2021), in 2020 Europeans
exported 2.4 million tons of steel products to the
United States. The main export items were flat rolled
products with coated and special alloys (about 1
million tons), as well as pipes (about 0.4 million
tons). EU producers have previously received
exemptions from Section 232. According to
EUROFER, last year about 1 million tonnes of these
2.4 million tonnes fell under these exemptions.
Therefore, quotas and exemptions together give the
potential for exports of 4.3 million tons, which is 2
million tons higher than exports in 2020.
However, such trends are more theoretical than
practical, because it is fundamental and strategically
important to identify products that have the greatest
potential for export. Thus, in 2017, European exports
to the United States amounted to 4.5 million tons.
As a result of the introduction of section 232,
exports from the EU to the US of long-term rolled
products decreased the most - by 700 thousand tons.
But these are less marginal products, European
producers do not have special advantages over
American ones. Therefore, opportunities to increase
long-term rental exports to the United States are
limited. While the export of flat rolled products with
coating and special steel fell by 500 thousand tons,
and the export of pipes - by 600 thousand tons. These
segments have the greatest potential. However, there
was a shortage of capacity in the flat-rolled segment
in the EU this year. Therefore, the expected supply
potential may remain open.
There are significant opportunities in the pipe
segment, where investment in the oil and gas segment
is expected to increase in the United States next year.
That is, Europeans can increase their exports to the
United States next year from 0.5 million tons to 1
million tons, which, in principle, a lot, but not critical
for the American market. Americans do not agree to
trade concessions for the sake of hype or PR - they
clearly understand that such agreements will not harm
their industry.
Returning to China, it should be noted a sharp
decline:
- the cost of futures for iron ore on the Dalian
Exchange, just for one week in mid-November - by $
85.6 per ton, or 2.6 %;
- value of coking coal futures - up to $ 345, or
8.7 %;
- prices for finished steel products, namely,
fittings - by 17 %, hot-rolled coil - by 14 %.
According to the forecasts of (Kim, 2022), the
current negative trend will continue until the end of
2021, and steel production in China may show a
further decline in the first quarter of 2022.
The Chinese Federation of Logistics and
Procurement predicted that in November 2021 the
steel market will continue to shrink. Production was
constrained by environmental restrictions, which are
traditionally introduced in the autumn-winter period
to reduce air pollution. In conditions of lower
temperatures, there was a seasonal decrease in
demand for steel for construction work. At the same
time, enterprises are very cautious about the prospects
for economic development: the index of productive
business activity fell by 10.3 percentage points.
relative to the previous month (up to 46.1%). That is,
we see a tendency to slow down.
The federation expects raw material prices to fall:
with the resumption of supply, coal prices have
Marketing, Manufacturing and Economics: The Foundation for the Competitiveness of a Modern Enterprise
147
returned to a reasonable level, and iron ore prices may
re-enter the downward trend amid declining domestic
demand. Under the influence of demand in the
southern regions of China, steel prices may rise in the
first half of January 2022, but with worsening weather
conditions, demand will weaken, and in the second
half of the month prices will fall.
In addition, China is an important source of
demand for semi-finished products, due to increased
control over the dynamics of steel production, even
using the method of re-exporting previously imported
semi-finished products to Southeast Asia.
At the same time, we observe a reduction in
demand for iron ore, which caused it to fall in price
from mid-October to mid-November 2021 by 21 %
(Kim, 2022).
Instead, the price of coal was constant due to the
shortage of its supply on the market. However,
experts predict a rapid fall in prices in the future due
to the collapse of steel production in China and
abroad. At the same time, along with coal, there will
be a new wave of falling steel prices around the
world.
With regard to fittings, it should be noted that the
International Association of Manufacturers and
Exporters of Fittings (IREPAS) (Kim, 2022) notes the
balance of supply and demand in the global long-term
rental market, as well as the willingness of
manufacturers to ensure timely delivery. Demand in
Europe and North America is strong, stocks are
actively replenished after depletion. It is expected that
active demand will continue in 2022 due to steady
growth in investment.
However, one should also take into account such
a deterrent to the development of international trade
as high freight rates. Every contract signed in the
second quarter now has high transportation costs,
which nullify profits. Given this fact and rising scrap
prices, long-term rental prices in the US market can
be expected to remain high in the first quarter of next
year.
The intensification of the process of introduction
of decarbonization of metallurgical production
testifies to the awareness of the fact that a
"revolution" of technologies is imminent in the world
metallurgy.
According to the British center "Agora", by 2030
71 % of blast furnaces in the world will be
decommissioned or will need to replace the lining.
This creates opportunities for large-scale
transformation of the industry during this period and
the replacement of blast furnace production with
other technologies, in particular the production of
direct reduction iron (DRI) (Holappa, 2021). Agora
estimates that 40 million tons of green DRI
(hydrogen-assisted) capacity will be built by 2030,
while companies are barely investing in industrial-
scale CO2 capture and disposal technologies (there
are only pilot plants, such as within the project
"Hisarna on Tata Steel").
The prioritization of hydrogen technologies is due
to the fact that they completely prevent CO2
emissions at the stage of production, while capture
projects are already struggling with the consequences
and, in addition, there are several complex problems
with the capture of captured CO2:
- incomplete availability of natural reservoirs
suitable for CO2 storage;
- the need to take into account which products are
made from captured carbon dioxide. If in the process
of using these products CO2 is released into the
atmosphere again, the feasibility of such utilization of
carbon dioxide is questionable.
We are even aware of the fact that in the future
there will be a gap in the pace of decarbonization of
metallurgy in developed and developing countries.
The majority of projects are being implemented or
will be implemented in the former as not only having
cheap sources of funding and technology
development centers, but also creating infrastructure
and implementing appropriate government policies to
promote decarbonisation.
ArcelorMittal, the world's largest steelmaker,
recorded a net profit of $ 4.6 billion in its financial
report published on the company's website
(https://ukraine.arcelormittal.com/?lang=en) in the
third quarter of 2021. This is a record figure since
2008. In the third quarter of 2020, the company
received a net loss of UAH 261 million. Compared to
the second quarter of 2021, ArcelorMittal increased
its net profit by 15 % in the third quarter of 2021.
Management explains these results for the third
quarter by the successful maintenance of strong price
conditions, which led to the highest net profit and the
lowest net debt since 2008.
ArcelorMittal's revenue in July-September 2021
increased by almost half compared to the third quarter
of 2020 - to 20.2 billion dollars.
The company's EBITDA (net income before taxes
and depreciation) in the third quarter of 2021
amounted to 6.058 billion dollars. In July-September
2020, the figure was UAH 901 million.
Operating profit in the third quarter of 2021
amounted to 5.3 billion dollars, in the third quarter of
2020 - 718 million dollars.
As of the end of September 2021, ArcelorMittal's
net debt fell to $ 3.9 billion of $ 5 billion as of the end
of the second quarter of 2021.
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Despite the corporation's financial success, we are
also seeing a reduction in steel volumes. Thus,
ArcelorMittal in the third quarter of 2021 reduced
steel shipments by 19.8 % compared to the third
quarter of 2020 - to 14.6 million tons. The
corporation-maintained steel production at last year's
level - 17.2 million tons. Iron ore production in three
months decreased by 13.8 % to 13 million tons.
As you know, ArcelorMittal is the world's leading
steel and mining company with a presence in 60
countries and production assets in 18 countries.
According to the results of 2020, the steel giant
reduced steel production by 20.3 % compared to 2019
- to 71.5 million tons (Lehenchuk, 2021).
As we can see, the autumn of 2021 turned out to
be difficult for metallurgists: the world industry is
reducing production and Ukraine is no exception.
In September 2021, the volume of steel smelting
by domestic enterprises decreased by 8.4 % compared
to August 2021. The same trend was observed in
October. According to (Holappa, 2021), steel
production in October fell by another 5.8 % m/m.
That is, the negative dynamics relative to August is
minus 13.6 %.
Among the main reasons is the 45-day suspension
for the repair of the largest blast furnace №9 at PJSC
ArcelorMittal Kryvyi Rih. There is also a shortage of
coke due to problems with coal supplies, especially
local. According to the Ukrkoks association,
production restrictions related to coal and coke
shortages persisted in November-December 2021.
In November 2021, the situation did not improve
significantly. The №9 blast furnace was still under
repair. The problem with coke did not go away. Some
improvements did not appear until December 2021.
At the end of September 2021, there was a certain
rebound in prices and, consequently, an increase in
demand in December. But in the new 2022, the
market will face a new challenge - a shock to demand
under the influence of high energy prices and a
gradual strengthening of monetary policy of central
banks.
PJSC "ArcelorMittal Kryvyi Rih" is a full-cycle
metallurgical enterprise, part of the ArcelorMittal
group. The plant covers the entire production cycle -
from iron ore mining and coke production to the
manufacture of finished metal products. The
company produces semi-finished products, as well as
high-quality and shaped products.
Examining the features and results of PJSC
"ArcelorMittal Kryvyi Rih" for 2019-2021, it should
be noted that PJSC "ArcelorMittal Kryvyi Rih" in
January-October 2021 increased iron production by
13.9 % compared to the same period last year - up to
4.57 million tons (Chaika, 2021).
During this period, rolled production increased by
5.4 % compared to January-October 2020 - up to 3.9
million tons, steel smelting - by 8.9 %, to 4.17 million
tons. In October, the plant produced 400 thousand
tons of rolled products, 410 thousand tons of steel and
405 thousand tons of pig iron.
However, in 2020 PJSC "ArcelorMittal Kryvyi
Rih" reduced the production of rolled products by 7.6
% compared to 2019 - to 4.3 million tons. Steel
production for the year fell by 12.1% to 4.7 million.
tons, and cast iron - by 6.9% to 4.9 million tons.
Negative dynamics in the sphere of production is
also connected with the growth of energy prices and
the state's attempts to control energy consumption
(these factors affected both producers and
consumers). The decline in exports was influenced by
the decline in domestic steel production, as well as the
resumption of production abroad.
3 ANALYSES OF PREVIOUS
STUDIES
Currently, specialists of the State University of
Economics and Technology with scientists from other
educational institutions of Ukraine are working on a
comprehensive improvement of metallurgical
processes, ranging from technologies for coke
(Kormer, 2021) and metallurgical raw materials
(Zhuravlev, 2021) to environmental issues
(Radovenchyk, 2021). However, a special role in
improving the work of metallurgical production are
the processes of steel smelting.
Currently, the technological process of converter
melting is corrected by the total oxygen consumption,
as well as the data obtained during the "rolling" of the
converter in order to take a sample of metal for carbon
content and measure its temperature (Tanzer, 2021).
The number of such "rolls" of the converter can reach
two, three or more times, which negatively affects the
performance of the converter, temperature losses of
metal and slag, slag thickening and other disorders of
converter melting (Rout, 2018; Li, 2021). The
experience of industrialized countries, in particular
Japan, shows that the melting in the required chemical
analysis and temperature is 99.8% without the
implementation of "rolling" the converter and
corrective "additional" (Brämming, 2016).
It is possible to predict the time of completion of
the oxygen purge of the converter smelting and to
monitor the course of its main processes on the basis
Marketing, Manufacturing and Economics: The Foundation for the Competitiveness of a Modern Enterprise
149
of real-time calculation (during melting) of the melt
temperature (reaction zone) (Mason, 2020; Kumar,
2016). The temperature of the melt (reaction zone) is
easy to determine from the equations of the balance
of heat (Liu, 2019; Arnu, 2017; Zhou, 2017; Sohn,
2019; Rieger, 2020; Zhu, 2020; Florén, 2019;
Manabe, 2019; Madhavan, 2021) radiated by the
hemisphere of the reaction zone to the water-cooled
oxygen lance and the heat removed from the oxygen
lance by water.
4 RESULTS OF THE STUDY
To calculate the temperature of the melt, input
information is required: about the water temperature,
its flow rate and pressure at the inlet and outlet of the
oxygen lance; temperature, flow rate and pressure of
injected oxygen. The mathematical model for
calculating the melt temperature introduces
information about the position of the oxygen lance,
raw materials, molten steel grade, as well as chemical
analysis of metal samples and direct temperature
measurement during the "rolling" of the converter.
Using a mathematical model, the current
temperature (during melting) of the reaction zone
(Trz) of the metal is calculated and the dependence
Tr.z. of time. Changes in the temperature of the
reaction zone during melting characterize the
processes occurring in the bath of the converter.
Analysis of the obtained dependence in real time
allows us to quickly predict the end of oxidation [Si]
and [Mn], the content of [C] in the melt. In addition,
the thermal energy of radiation in different periods of
melting is predicted to adjust the flow of injected
oxygen during melting, the need to adjust the position
of the oxygen lance relative to the metal, and most
importantly, you can predict with high reliability the
end of purge.
The technological means of the automation
system implementing the developed model include
sensors of temperature, flow, water and oxygen
pressure, lance position, means of communication
with ACS TP converter smelting, control and
workstation control, as well as a set of algorithms and
programs.
The algorithm for calculating the current
temperature of the reaction zone (Tr.z.) during
melting is based on the consideration of the melt as
an energy emitter. Thus, when purging the melt in the
converter with technical oxygen through a multi-
nozzle lance, the surface of the steel melt is a sphere
of radiation with a high temperature, the temperature
of the reaction zone (Tr. z.). This temperature is
analytically related to the metal temperature (Tm).
The flow of electromagnetic radiation from the
sphere of the reaction zone through the space of hot
gases (blackness coefficient 0.8-0.9) falls on the
surface of the water-cooled lance (technical oxygen is
injected through the lance), and consumption,
pressure, temperature and O2 content may vary. as
well as changes the position of the lance in different
periods of melting).
The energy of radiation from the surface of the
reaction zone obeys the Stefan-Boltzmann law:
Е = ε·С·(Т/100)
4
, W/cm
2
,
(1)
where ε - is the blackness coefficient (0.8-0.9), C
is the radiation coefficient of the absolute body 5.68
W/cm2·K4, T is the temperature of the radiating
surface, K.
The power (P) of radiation incident on an oxygen
lance with a surface area (Sf) will be:
Р = Е·S
f
= S
f
·ε·С·(Т/100)
4
, W
(2)
The power of the energy obtained by water (Pw)
cooling the lance from the flow of energy radiated by
the surface of the reaction zone can be estimated by
the formula:
Рw = V·(ρ2·h2 - 1·h1), kW, (3)
where V is the volume of water cooling the lance
per unit time, m3; ρ2 - density of water, kg/m3 at a
temperature of T2 at the outlet of the lance; ρ1 -
density of water, kg/m3 at a temperature of T1 at the
entrance to the lance; h1 - specific heat of water,
J/(kg·°K), at a temperature of T1 at the entrance to the
lance; h2 - specific heat of water, J/(kg·°K), at a
temperature of T2 at the outlet of the lance.
The given values of water parameters are
calculated from measurements of temperatures T1
and T2, pressure and water flow.
The cooling effect of oxygen blown through the
lance is taken into account by a factor of k1, and the
effect of the distance from the lance to the surface of
the reaction zone by a factor of k2, (lance position).
As a result, the energy power obtained by cooling
water, taking into account the effect of oxygen purge
through the lance and its position relative to the
surface of the reaction zone (measured oxygen flow,
pressure and temperature, and the lance distance to
the melt surface) will be:
Рw = k1·k2·V·(ρ2·h2-ρ1·h1)·103 , W, (4)
ISC SAI 2022 - V International Scientific Congress SOCIETY OF AMBIENT INTELLIGENCE
150
The power of the flow falling on the surface of the
lance is compared with the power obtained by cooling
the lance with water:
Р = Р
w
= S
f
·ε·С·(Т/100)
4
= k
1
·k
2
·V·
·(ρ
2
·h
2
-ρ
1
·h
1
)·10
3
, W,
(5)
where from
rz
/100)
4
= (k
1
·k
2
·V·(ρ
2
·h
2
-
-ρ
1
·h
1
)·10
3
)/S
f
·ε·С,
(6)
Т
rz
4
= (10
3
·10
8
·k
1
·k
2
V·(ρ
2
·h
2
-
ρ
1
·h
1
))/S
f
·ε·С,
(7)
then the temperature of the reaction zone will be:
Thus, by measuring the heat flux obtained by
cooling water and introducing correction factors for
oxygen consumption and lance position, it is possible
to calculate the current temperature of the radiating
surface of the reaction zone using a computational
algorithm, which allows to have a new process
parameter throughout the melting time.
Connections Tr.z. with technological parameters
of converter smelting installed in the oxygen-
converter shop "ArcelorMittal Krivoy Rog".
It was found that the temperature of the reaction
zone Tr.z. reflects its changes in different periods of
melting technological processes in the converter (Fig.
1):
- the temperature of the steel melt Tsm and the
temperature difference ΔT = Tr.z. – Tsm;
- the first maximum ΔT reflects the intense course
of the oxidation reaction Fe in the reaction zone with
weak heat dissipation due to poor mixing of the bath
and low rate of carbon oxidation - VC;
- the next rise in ΔT is associated with the active
oxidation of [Si] and [Mn], which oxidize more
actively than [C], and as their content decreases, the
bath overheats weakens;
- the completion of the oxidation of [Si] and [Mn]
creates the preconditions for less active [C] to
combine with O2 under favorable external conditions
(high temperature), to stir the bath more intensively
and remove heat, reducing ΔТ;
- after the intensification of endothermic processes
due to Fe oxides in the slag there is a new rise ΔT;
- after decreasing the concentration [C], its
oxidation rate VC decreases, the mixing of the bath
with the formed CO decreases and the growth of Tr.z.
with a rate (2-3 °C) per minute with its final
stabilization; then Tsm increases, and ΔT decreases
with constancy Tr.z.;
- temperature difference ΔT = Tr.z.-Tsm allows
you to predict the change in the content of [C] in the
melt from its second maximum (there are
experimental dependencies that need to be adapted to
the conditions of the shop and empirical
dependencies, for example:
(ΔТ/100)
2
= 10(5 + 4[С] - [С]
2
). (9)
1 - intense oxidation of Fe with weak stirring, 2 - the
beginning of active oxidation of [Mn] and [Si],
3 - endothermic processes of Fe oxides in the slag, 4 -
growth retardation due to active stirring of the bath, 5 - fall
due to reduction [C], 6 - deterioration of mixing, 7 -
temperature increase by 2-3 ° C, 8 - temperature
stabilization
Figure 1: Change in the temperature of the reaction zone
during different melting periods in the converter.
It should be noted that after the second maximum
ΔT there is an accumulation of O2 in the melt and
oxidation [C] there are periods when the amount of
carbon monoxide formed exceeds stoichiometrically
possible, based on oxygen consumption in the melt
bath (these ratios can be calculated), due to excess
oxidation melt.
This situation can be calculated and influenced by
the gas-blowing mode to reduce the supply of oxygen
to the melt to reduce the oxidation of steel and reduce
deoxidizer consumption when casting steel or provide
for the replacement of oxygen with air without
compromising bath mixing.
The efficiency of control over the steel smelting
process will be higher with the use of additional
compensatory measures to reduce the likelihood of
Т
rz
=
4
21
11
Vkk10
4
f1122
СS/)hh( ερρ
, К.
(8)
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151
overfilling (Chuprinov, 2021) - the use of limestone
in the amount of 130-140 kg/t of pig iron in the case
of the latter, the addition of coolant in the form of
ground coke in the amount of 120 kg/t scrap when
using it, as well as overheating of the metal by 20-30
°C in the case of an oxygen converter on the "goat"
scrap.
5 ECONOMIC JUSTIFICATIONS
An important stage of any research process, including
the process of improving metallurgical technologies,
is to understand, formulate and justify the factors that
determine the economic efficiency of decisions.
In particular, one of the determining factors that led
to the expediency of eliminating the addition of steel
is a significant saving of time spent on one smelting
of steel. Thus, if the duration of one melting is
considered to be 53-54 minutes, then due to the
elimination of the last stage of melting -
supplementation, the duration of which is 3-4
minutes, it becomes possible to achieve one melting
lasting 50 minutes.
In metallurgical practice it is known that in the
conditions of standard smelting of steel (with the
stage of supplementation) with an approximate
duration of 54 minutes for one smelting one converter
is capable to smelt 140 tons of steel. Accordingly, for
the day under this scheme is 26.6 smelts and can be
obtained 3724 tons of steel.
If you consider the option of smelting without
supercharging (lasting 50 minutes), then in a day it is
possible to carry out 28.8 smelting of steel under this
scheme, ie to smelt 4032 tons of steel.
Determining the volume of steel smelting
with/without taking into account the finishing process
makes it possible to estimate the change in the daily
volume of steel smelting by one converter by
reducing the time spent on additional welding. This
can be calculated by the following formula:
1
2
sp
V
V
К =
,
(10)
where K
sp
- growth rate of steel smelting one
converter per day;
V
1
- daily volume of steel smelting by one
converter (3724 t),
V
2
- daily volume of steel smelting as one
converter as a result of technological change, in
particular, avoidance of the additional process (4032
tons).
Also, the growth rate of steel smelting per
converter per day will be:
0827,1
3724
4032
К
==
If we talk about the absolute changes in achieving
economic efficiency of our proposed measures, it is
advisable to calculate the amount of additional
steelmaking. Thus, in one day, provided that the
additional process is avoided, one converter will
make it possible to obtain the following increase in
the volume of steel:
∆V = V
2
- V
1
,
(11)
where ∆V is the daily increase in steel volume.
That is:
∆V = 4032 - 3724 = 308 (t).
Given that the use of specially adapted to the
described process of steel smelting mathematical
models, we managed at the stage of chemical analysis
of the sample to obtain a 50 percent quality result of
the chemical composition of steel, for greater
accuracy of further calculation of additional profits.
twice less than expected, ie 154 tons.
Since, as mentioned above, according to the
standard scheme of smelting, the size of the daily
volume of steel smelting is 140 tons, it turns out that
in the conditions of smelting without refueling for
each subsequent smelting is an additional 14 tons of
steel.
As a rule, 5 converters work in the converter shop
of PJSC "ArcelorMittal Kryvyi Rih" at the same time,
so the daily increase in steel smelting in the whole
shop (∆V
c
) due to our proposals will be:
∆V
c
= 154 ∙ 5 = 770 (t).
Knowing the value of the average market value of
steel (Bm = 7000 UAH.), It is easy to determine the
amount of additional profit of the shop per day (GP)
as a result of the implementation of measures:
ΔП = В
m
∙ ∆V
c
,
(12)
or
ΔP = UAH 7,000 ∙ 770 = 5,390,000 (UAH).
Thus, due to the elimination of the additional
stage of the steel smelting process, which, in turn,
ISC SAI 2022 - V International Scientific Congress SOCIETY OF AMBIENT INTELLIGENCE
152
reduces the time of one smelting, it becomes possible
to achieve economic efficiency of our proposed
measures, as the daily profit increase of converter
shop PJSC "ArcelorMittal Kryvyi Rih" will be 5.39
million. UAH.
6 CONCLUSIONS
1. The results of marketing research show that against
the background of the extremely difficult situation on
the world metallurgical market and its unstable
situation, PJSC "ArcelorMittal Kryvyi Rih" needs to
apply the latest approaches to increase its
competitiveness, one of which should be a
comprehensive approach. combining efforts and
results from marketing and production activities of
the enterprise.
2. Application of mathematical model and system
of automatic control of melting on the basis of
operative control of change of temperature of reaction
zone will allow to reduce time on "rolls" of the
oxygen converter at reception of steel with the set
characteristics, and also to reduce melting duration by
2-3 minutes (to 4%). In addition, the use of additional
compensating mechanisms developed earlier (Mason,
2020) will significantly increase the economic
efficiency of the steelmaking process in the converter
shop
3. Coefficient analysis and economic assessment
of changes in the daily volume of steel smelting by
one converter by reducing the cost of additional time,
as well as the use of specially adapted to the described
process of steel smelting mathematical models
allowed to obtain 154 tons of steel as a daily increase
in steel t more than in the standard scheme of melting.
This, in turn, in the scale of the converter shop of
PJSC "ArcelorMittal Kryvyi Rih" with five
converters allowed us to achieve economic efficiency
from the measures proposed to us, namely, to receive
UAH 5.39 million. additional profit of the shop.
4. It should be noted that in the article the authors
managed to fulfill all the tasks set at the beginning
from the standpoint of innovation. So, for the first
time, an innovative approach to organizing the work
of a metallurgical enterprise is proposed, which is
based on close cooperation of important processes -
marketing, production and sales. This approach is
based on the invention of new ways of implementing
the latest metallurgical technologies with minimal
production and non-production costs, which allowed
to increase the level of economic efficiency of the
steel production process at the metallurgical
enterprise. Also, the newly developed production,
economic and marketing mechanism of efficient
operation of the metallurgical enterprise allowed to
build a logical connection between the defining links
of modern metallurgical production - from marketing
to economic efficiency.
5. The solutions developed in the technological
part were included in the automation equipment for
the oxygen-converter shop of AMKR. Models based
on 500 heats of various steel grades have allowed
technologists to introduce new methods of process
control, thereby increasing the efficiency of the steel
shop. To date, the elements of the presented study
have already been introduced into the production
process control scheme of the steelmaking
department.
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