Blast furnace produces molten iron, and it is indispensable to steelworks operation. With 110 meters in height, its scale is enormous.

All the steel products we see in our everyday lives are made from the molten iron. However, other than this simple fact, there really isn’t much we know about the blast furnace as what’s visible is its colossal steel exterior, not the inside.

What’s inside the blast furnace and how does it operate, with what technology? To help understand the details of blast operation, POSCO Newsroom presents ‘Blast Furnace Anatomy #1 – To the Heart of Steelworks Operation.’

l Earth, Fire, and the Wind: The Three Elements of Molten Iron

What gives birth to molten iron? It’s Earth, fire and the wind — these three elements come together in a blast furnace to create molten iron. How exactly? Let’s find out.

First, the iron ore, the raw materials for steel, comes from the Earth. Most iron ores — hematite, magnetite, limonite — contain an average of 60% of iron (Fe). Before the iron ores enter a blast furnace, it undergoes ‘sintering’ which turns the pristine iron ore into more compact and appropriate sizes.

The sintered iron ores become ‘sinter.’ The iron ores that come in just the perfect size right from the extraction are called ‘sized lump.’ The ores in microscopic scales are pelletized, which are called ‘pellets.’ Steelmaking utilizes all three materials as raw materials. Subsidiary raw materials like limestones are also used.

<Blast Furnace: Fuels & Raw Materials>

Now, the blast furnace will melt all the raw materials and extract only the iron (Fe), where coke and pulverized coal fuel the raw materials.

Coke is a grey, hard, and porous fuel made by heating coal up to 1000℃. Inside the furnace, coke is the main heat source melting various materials. It also acts as a reducing agent deoxidizing iron ores. The pulverized coal is a lump of the coal smashed into small pieces — of 0.125mm in size or less. Of the two, pulverized coal makes for a more economical option.

The raw materials and fuels alone do not magically create molten iron, of course. They will need the hot air inside the blast furnace — the hot air about 1200 ℃ in temperature. Then, the fuels and raw materials layered inside the furnace literally fly up inside the furnace! To better grasp the process, let’s slice the blast furnace in half and look inside.

This is what a blast furnace looks like. What exactly happens inside the blast furnace?

Fuels and raw materials enter the furnace through the top opening. The rotating chute evenly distributes the materials, landing them precisely at the due location. Then, the fuels and raw material layer in rotation — a layer of fuel, a layer of raw material, etc. Together, they create more than 40 layers of fuels and raw materials.

At the bottom of the blast furnace, the hot air of 1200℃ heats the materials and fuels. The hot air with a force of 4.0bar triggers such a force that the materials fly up in the air. Because of the heat, coke chemically dissolves the raw materials.

These processes produce molten iron, slag, and by-product gas at which stage, they are still mixed. Then, the by-product gas rises to the top while the molten iron and slag drop to the bottom. Once filtered through dust collectors, the gas transforms as a power source for steelworks. As for slag and molten iron, they are each separated for slag granulation and steelmaking. From the moment the raw materials enter the furnace, it takes about six and a half hours for the materials to transform into molten iron.

l And By-products? Recycle, Recycle, and Recycle

The by-product gases produced inside the blast furnace are released through the top pipe, mostly carbon monoxide, carbon dioxide, and nitrogen. For every ton of molten iron produced, the furnace emits about 1,600 cubic meters of gas. The gases go through primary and secondary dust collectors for purification. The purified gases are utilized to power different facilities at steelworks. This is how POSCO self-produces 74% of the electricity for its steelworks operation.

<Blast Furnace: The Journey of By-product Gases>

Other by-products from inside the furnace also include ingredients like silica (silicon dioxide) — not part of necessary ingredients to produce molten iron. To separate silica from iron ore, the subsidiary material limestone is added during sintering. Once inside the furnace, limestone combines with the silica and drops to the floor. The mixture is lighter than molten iron, so it layers above the molten iron. This mixture is another steelmaking by-product, slag.

Where does the slag end up? POSCO slag is recycled 100% as fertilizer and cement. Blast-furnace slag is rich in silicic acid, an excellent fertilizer for rice farming. Altogether 390,000 tons of POSCO slag was used for agricultural farming in 2018.

POSCO also developed POSMENT, an eco-friendly cement with a higher portion of slag which reduces CO2 emission up to 60%. Altogether 10.69 million tons of POSCO slag contributed to reducing 8.39 million tons of net greenhouse gas emissions.

l Is Blast Furnace Outdated?

Because blast furnaces have been around for so long, it could feel outdated. However, the furnace is full of sophisticated technology.

The sophistication starts from the very moment when the raw materials drop into the blast furnace. Landing them at the precise locations requires advanced technology. Precise calculation is crucial in all procedures — the order of insertion, in what sizes, how much, where, and at what timing. Based on these calculations, the rotation angle of the chute is adjusted, so that the raw materials and fuels distribute evenly inside the furnace.

Another part of the furnace technology involves the insertion of hot air into the furnace through over 40 holes. The timing must be steady. To boost productivity, pure oxygen is sometimes added to the hot air. There is also a facility that produces the hot air, which is called a hot stove. What powers the hot stove is the by-product gas produced in the blast furnace — recycled 100%. Such sustainable technology is at the core of POSCO’s competitiveness.

With the mixtures of solids, liquids, and gases creating many chemical reactions, it can be difficult to predict exactly what’s happening inside the furnace. With the 46 years experience of operating blast furnaces, POSCO has a reliable system to predict the condition of furnaces, however. At POSCO, the condition of blast furnaces can be monitored through live-data such as the temperature of the furnace, pressure, and the status of molten iron-making. Since the blast furnace operation is 24/7 nonstop, maintaining a stable condition has a critical bearing on the safe and economical operations of steelworks.

l Blast Furnace Shapes Korea’s Modern History

It’s no wonder the Pohang No.1 Blast Furnace was cited as Korea’s economic national treasure — for the immense contribution it sparked for Korea’s overall economic growth.

During the 1960s, when the whole country was still reeling from the wounds of the war, POSCO’s blast furnace provided an opportunity not only to lift the country off abject poverty but to continue — to hope.

Even at this moment, the Pohang No.1 Blast Furnace is making molten iron just the same — like the time when the golden molten iron poured out of the tap of the Pohang No. 1 blast furnace for the first time. The initial sentiment of the time might have faded, but the blast operation continues.

As a part of this effort, we are going to share the perspective from the expert of ‘Green energy’, Yun jung, Jin who is the senior researcher at POSCO Research Institute (POSRI).

Steel is nearly 100% reusable in consideration of Life Cycle Approach(Source: World Steel)

How do we achieve sustainability?

No one would deny the importance of sustainability. But how do we achieve it?

According to Jin, the answer can be found in the ‘Life Cycle Approach’ model. This model provides a better idea of how sustainability can be achieved. Life Cycle Approach seeks to prevent the root causes that can threaten the environment by identifying and considering all stages of a product’s life cycle, beginning with the extraction of raw materials.

Take vehicle emission as an example, it is widely known that electric vehicles produce far less pollution than gasoline vehicles. However, a closer look at vehicle operation would reveal that electric vehicles also produce a fair amount of pollution by burning carbon when generating electricity.

Majority of Steel product we discard is easily recycled(Source: GenesisSteel)

Can Steel be life-cycled?

So how does steel fit into the Life Cycle Approach?

Jin showed little bit more on details of the reasons why steel should be considered as an important eco-friendly as product or a material. Beginning with the manufacturing stage, the by-products of steel production, such as slag, can be recycled to make raw materials for road construction. Once in use, its longevity is a great advantage in terms of sustainability efforts. Steel used in buildings and various infrastructures boast a life span of almost 100 years. Steel used in vehicles and various machines also can last over 10 years.

SEE ALSO: Recycled Steel Changing the Way the World Uses Metal

Lifespan of steel is way longer than we anticipate(Source:World Steel)

After it has served its purpose, steel is still highly recyclable and boasts a recycling rate of nearly 90%. Because it can be infinitely recycled while maintaining its inherent property and quality intact, steel is considered the most suitable material for circulation economy.

POSCO’s Clean advanced technology may be the solution for green society

Steel is essential for our sustainable future

Jin mentioned that the POSRI reports clearly illustrates that various ways of steel can be applied to the Life Cycle Approach and its viability as an integral element for sustainability. POSCO strives to stay ahead of the curve by utilizing its cutting-edge technology to develop innovative products and solutions, such as the GIGA STEEL and FINEX® smelting processes.

Finally, Jin assured that with the Life Cycle Approach in mind, POSCO takes pride in all the efforts in reducing greenhouse emissions and in paving the way towards a sustainable society.

SEE ALSO: How Steel Makes the Circular Economy Go ‘Round’

POSCO has announced its financial reports at Investor Relation (IR) conference call on April 24th that its first quarter consolidated sales were up to 14.7 billion dollars and its consolidated operating profit was 1.4 billion dollars. The consolidated net profit was approximately 1 billion dollars.

POSCO’s consolidated profits indicates positive sign for both domestic and overseas

Reach to 14.7 billion dollars consolidated sales, 1.4 billion dollars in consolidated operating profit

Sales, operating profit and net profit has elevated by 5.2%, 9% and 10.9% compared to the previous year. This impressive achievement is done by the improvement of both domestic and overseas steel production and non-steel affiliates.

Non-consolidated sales of 7.7 billion dollars and 946 million dollars of operating profit.

PT. KRAKATAU POSCO, which is an integrated steel mill in Indonesia also turn into profit from the third quarter. Despite of decrease of steel bar and shaped steel plant from POSCO SS VINA in Vietnam, operating profit has increased gradually. This great performance of oversea steel subsidiaries gives positive indication of growth in sales.

Its non-consolidated sales rate has increased by 9.8% year-on-year to 7.7 billion dollars. Also, the proportion of the sales of World Premium products went up by 1.4% year-on-year to 54.9%.

Increased sales of high-value-added products, cost reduction, continued improvement of profitability, and the increased price of steel were the driving force of increasing operating profit margin from 1.8%p year-on-year to 13.1%.

Future is even brighter

POSCO expects that demand of steel will continuously increase on the back of steady restructuring of the Chinese steel industry and recovery of emerging economies. POSCO still also continue to secure financial soundness, reducing costs, and expanding high value-added sales.
All those efforts of POSCO brought impressive result of increasing consolidated and non-consolidated sales to 58.4 billion dollars and 27.9 billion dollars.

They observed that the price of coking coal went from USD 75 per ton in February 2016 to USD 200 in December 2017, but it wasn’t a linear rise. In April 2016, the Chinese government implemented policies limiting the mining and production of coking coal, sending prices up to USD 300 per ton in just 2 months. Prices did eventually stabilize, but a series of natural disasters compromised supplies and logistics from major suppliers, leading to another rapid price increase.

The Chinese government is tackling overproduction and pollution in a series of economic policies. (Source: Brian D. Colwell)

Iron ore prices also had their ups and downs. At the beginning of 2016, the price for iron ore was  USD 41 per ton. Then, it reached USD 95 at the beginning of 2017, went back down to USD 57 in June, then shot back up to USD 70 in December 2017.

This price instability placed a heavy burden on steel producers and steel-consuming industries, making it hard to plan for the near and distant future. The following are a few of the factors that contributed to the capricious prices that will likely continue on into 2018 and beyond.

SEE ALSO: How Factories Produce Steel- the Smart Way

China environmental policy

Beginning in 2016, the Chinese government sought to close over 1,000 coal mines in just one year to cut the country’s production capacity by 60 million tonnes. This is part of the 5-year goal of cutting 500 million tonnes of surplus capacity.

Policies included switching to cleaner fuels and reducing mining-related working days from 330 to 276 days per year. Numerous small and medium-sized mines closed down as a result of the financial burden and domestic coal production was down 7.8 percent YoY.

Chinese mine workers were limited to 276 days of work per year in 2016.(Source: Mashable)

As China is the biggest producer of coal and the third largest producer of iron ore in the world, global prices skyrocketed and the ripple effect was felt in markets all over the world. Due to the greater-than-expected domestic and global outcomes, the Chinese government eased some of its policies in November of 2016, bringing prices back down by about 50 percent. However, the government is scheduled to gradually enforce production capacity reduction and environmental policies again in the near future. In the meantime, prices will continue to fluctuate in accordance to policy changes.

Climate change and unstable supplies

Australia is one of the top producers of coking coal and iron ore in the world, and the biggest net exporter. Much of the world relies on the raw materials coming from Australian mines, but in 2016 and 2017, natural disasters shut down mines and paralyzed logistics routes in the country.

In September 2016, Australia experienced record-breaking heavy rainfalls that led to the collapse of the Anglo American and South32 mines, and derailed railways leading to Port Abbot Point. Heavy rainfall again shut down rail operations and other major logistics routes in the beginning of 2017.

El Niño and La Niña events around the world are causing sporadic weather patterns that are costly to the environment and economy. (Source: Time)

Such inclement weather can be attributed to increasingly frequent El Niño and La Niña events around the world. According to the U.S. National Ocean Service, “El Niño and La Niña are opposite phases of what is known as the El Niño-Southern Oscillation (ENSO) cycle,….the fluctuations in temperature between the ocean and atmosphere in the east-central Equatorial Pacific… La Niña is the cold phase of ENSO and El Niño as the warm phase of ENSO.” Such deviations from average temperatures can cause fluctuations in global weather and climate, posing high risks for coal supplies and logistics.

The Oligopoly of major suppliers

Already, the biggest coal and iron ore producing companies are concentrated in Australia and Brazil. The “big four” are considered to be Vale, Rio Tinto, BHP Billiton and FMG, whose combined exports amounted to 959 million tons in 2014, 1.068 billion tons in 2016 and is expected to reach 1.135 billion tons in 2018.

Their growing share of the global minerals export market as oligopolies over the last few years have only strengthened their power to negotiate prices and contributed to the abnormal amplification of iron ore and coking coal prices. Plus, their position only looks to be solidified with the rise of renewable energy and environmental policies that are forcing smaller mines to close down.

Four major mining companies are expanding their share of the global market. (Source: New York Times)

BHP Billiton is the biggest exporter of coking coal in the world, and it announced in 2016 that it would increase coal output by 8 percent over the next 3 years. The company already owns several major coking coal mines all over the world, but continues to acquire profitable mines with high-quality minerals. Other major mining companies are also expected to continue increasing their share of the market, shutting out smaller companies and increasing prices for coking coal and iron ore.

In the near future, coking coal and iron ore prices will continue to be volatile, forcing steel and related industries to adopt more efficient and sustainable production processes to compensate. As such, global steel companies like POSCO are investing in sustainable energy alternatives to power production, smart factories to enhance efficiency as well as researching high-quality steel materials to boost its competitiveness in the global market. Preemptive planning in an unpredictable market has led to POSCO’s growth and success over the last 50 years, and it will continue to be a global steel leader and solution provider for its partners.

Cover photo courtesy of AVMY Steel Science.

The U.S. is headed towards a major shortage of truck drivers. (Source: The New York Times)

However, the U.S. is short of about 30,000 to 35,000 drivers for every 750,000 trucks, and the number of driver shortages may reach up to 245,000 by 2022. That’s because right now, the average age of truck drivers in the U.S. is 55, and potential new recruits are choosing to sign up for construction or manufacturing jobs instead.

All this leads to climbing prices for freight transportation. Last December, at the peak of holiday deliveries, U.S. companies saw the highest monthly average rate for freight transportation since 2010. The high operation costs and lower profit margins are putting a heavy strain on industries. Heading into 2018, companies have to compete for carriers as there is just one truck available for every 12 loads.

As a result, Major automakers are heavily invested in autonomous electric freight trucks such as Tesla, Volvo and Daimler, and there are many proponents of an eco-friendly, safe and driverless future for freight transportation. However, autonomous freight trucks are not a realistic option for companies just yet. At a time of transition between the old and the new, there is a serious lack of capacity in freight transportation, and companies are left to deal with the higher costs for delivery.  

But good news right around the corner

Although the driver shortage is a major concern, it is a natural phenomenon in the transition towards a safer, more sustainable and more efficient freight transportation industry.

Uber’s autonomous freight trucks are in operation with a human safety driver on the highways of Arizona. (Source: Future Car)

Already, Uber has its autonomous trucks on the highways of Arizona. Every truck does have a human driver present to take over anytime, and the company uses transfer hubs to transfer goods between highways and local roads. Autonomous trucks are the safest and most efficient for use on highways, so human drivers transport goods from highways to the final destination. The company is working to operate without human backup drivers in the near future.

Waymo’s autonomous freight trucks have gone through almost a decade of testing and is now delivering supplies for Google in Atlanta. (Source: Wired)

Waymo is another company with autonomous trucks already in operation. Just this month, the company’s autonomous freight trucks started transferring equipment for Google data centers in Atlanta.

Embark was the first company to complete a successful coast to coast run with an autonomous truck. (Source: Micro Power Grids)

Embark also has its autonomous trucks in operation. Earlier this year, the company made a successful 2,400-mile trip from California to Florida with a human safety driver on board. The company has plans to commercialize its services in the coming years.

SEE ALSO: 6 Cities On the Road to a Driverless Future

Speeding up delivery

Numerous other automotive and tech companies besides those mentioned above are getting ready for autonomous freight transportation. The faster autonomous freight trucks are able to operate commercially, the faster industries can cut costs, improve delivery times and reduce their carbon footprint.

This means software technology, high-capacity batteries as well as the right automotive materials will play a crucial role in the future of the freight transportation industry, as well as in related industries. This transformation will open up new business opportunities for automakers, software companies as well as steel manufacturers like POSCO.

For autonomous truck manufacturers looking for ultra-lightweight yet super strong materials for optimal fuel efficiency, POSCO developed POSCO GIGA STEEL. The advanced high-strength steel (AHSS) material is 3 times stronger and 3.5 times cheaper than aluminum. Steel is also 100 percent recyclable and an electric vehicle made of AHSS requires 30 percent less energy than aluminum throughout its entire lifecycle. POSCO also developed a premium non-oriented electrical steel called Hyper NO for the most advanced and sustainable electric motors.

SEE ALSO: Why Electrical Steel Can Make All The Difference In EV Motors

POSCO also works with its auto partners to research and provide customized technology and materials solutions for their autonomous EVs. In the midst of a critical shortage of truck drivers, POSCO hopes to speed up autonomous EV adoption both for personal and commercial transportation and aid the transition into a more efficient and environmentally sustainable economy.

Cover photo courtesy of Time.

Cities like Hanoi are expanding at an increasing rate. (Source: Channel News Asia)

Urbanization is also speeding up growth. By 2030, more than 10 million people will reside in Ho Chi Minh City. Not only demographically, Vietnamese urban areas are getting bigger physically, with a spatial expansion rate of 2.8 percent per year, which is faster than any other urban area in the Southeast Asian region. The growth is stimulating demand for new homes, roads, infrastructure as well as labor.

As a result, the country is already the biggest steel consumer in the region, driven by a strong construction industry and abundant FDI.

Foreign Direct Investment

During the record-breaking year of 2017, Vietnam saw registered FDI increase 44 percent YOY, and exports rise 23 percent. The majority of investment came from nearby countries such as Korea, Singapore, Japan and China, where the cost of labor is much higher than in Vietnam. Plus, of the country’s 92 million people, 60 percent are of working age, and have demonstrated high output levels. Thus, loads of manufacturing jobs are being offshored to Vietnam.

For example, Korea’s Samsung Display invested USD 2.5 billion in Vietnam last year, bringing total investments to USD 6.5 billion for the production of their display products. Polytex Far Eastern, a Taiwanese company, also invested USD 490 million for their yarn factory in Vietnam. With the continued flow of FDI, the country’s economy is reaping the benefits in terms of financial gain as well as developments in infrastructure.

Foreign Investment has created many jobs for Vietnam’s workforce, such as the workers above in a Samsung Factory. (Source: VN Media)

Two metro projects are under way in Ho Chi Minh City and Hanoi, both funded by foreign companies. Ho Chi Minh City’s Ben Thanh-Suoi Tien line will run through the city at a length of 19.7km, and is planned for completion in 2020. Most of the funding comes from Japan International Cooperation Agency (Jica), Japan’s Sumitomo Corporation and Shimizu-Maeda.

In Hanoi, the 13km Cat Linh-Ha Dong line is mainly supported by China Railways Sixth Group along with a consortium of other Chinese companies, and is scheduled to open for operation in 2018. Such major infrastructural upgrades will further boost the cities’ efficiency and create a better living and business environment.

A Strong Construction Industry

With FDI stimulating the economy and creating jobs, the Vietnamese are enjoying higher living standards and searching for homes in or near major cities. The growth of the middle class and urbanization have led to a booming construction industry.

According to POSCO Research Institute, Vietnam’s construction industry made up 33.3 percent of total GDP, with an 8 percent growth in 2017 alone. Moreover, the industry is projected to grow at an annual rate of 7 percent for the next 10 years. As a result, Vietnam’s construction industry is driving the nation’s steel demand. From 2011 to 2016, Vietnam’s steel demand grew by an average annual rate of 18.1 percent, the highest of Southeast Asian countries with the Philippines in second place at 13.6 percent and Thailand following behind at 5.7 percent.

Vietnam has seen the most rapid growth in steel demand in the region. (Source: SEAISI 2017)

With more and more homes and public infrastructure being built, Vietnam’s construction spending has grown at a CAGR of 8.5 percent and construction steel accounts for more than 93 percent of steel demand in Vietnam. Of those figures, structural steel demand is expected to make up 80 percent of the country’s entire steel demand, reaching 24 million tons by 2020. In comparison, the construction industry is accountable for 65.3 percent of total steel demand in Indonesia and 59.7 percent in Thailand, two of the biggest economies in the region.

Vietnam has one of the fastest-growing construction industries in the world. (Source: SEAISI 2017)

Currently, Vietnam’s domestic steel production capacity only meets 40 percent of its demand, meaning companies must secure stable, high-quality supplies of steel to match its growing demand.

SEE ALSO: Top 5 Steel Consuming Regions in 2018 and Beyond

POSCO’s Solution Marketing

For steelmakers like POSCO, Vietnam holds numerous possibilities for new partnerships and cooperation with construction companies. POSCO has been working closely with its partners in Vietnam for years, supplying premium products as well as supporting partners with technical and marketing solutions. POSCO also chose to open its first overseas structural steel solution center in Vietnam early this year at  POSCO SS VINA.

SEE ALSO: POSCO Opens its First Overseas Structural Steel Solutions Center in Vietnam

POSCO CEO Ohjoon Kwon (center) during a visit to POSCO SS VINA last year. (Source: POSCO SS VINA)

The center is composed of 3 main departments: Solution Planning, Solution Development and Technical Services. Due to the influx in demand for structural steel, the solution center will develop customized marketing strategies fit for the local market, and 25 experienced construction experts will provide support for projects using POSCO’s steel.

As Vietnam eyes another year of growth and development, POSCO SS VINA also looks forward to a busy year providing material and technical solutions for domestic construction projects that will play a vital role in Vietnam’s economic and social well-being.  

Cover photo courtesy of Smithsonian.

Prime Minister Modi revamped India’s economy with his “Make in India” initiative. (Source: LinkedIn)

Most notably, Prime Minister Modi launched the “Make in India” initiative in September 2014, showing his resolve to revamp the manufacturing industry in India. Under the initiative, domestic as well as foreign companies are encouraged to manufacture their goods in India with the goal of increasing the makeup of the manufacturing industry to 25 percent of GDP by 2025.

At the heart of the initiative is the government’s efforts to ignite the steel industry. The National Steel Policy (NSP) 2017 declared that India will become self-sufficient on domestic steel supplies by increasing its steel production capacity from 122 Mt in 2015 to 300 Mt in 2030. However, the steel industry currently only makes up 1.04 percent of the country’s GDP.

Challenges Ahead for India’s Steel Industry

Despite India’s promising potential and robust government support, the steel industry has not met the government’s high expectations and growth has been modest. According to researchers in volume 4 of the Asian Steel Watch, there are deep structural flaws within India’s steel industry that need to be addressed before the country can reach its full potential.

One of the industry’s biggest challenges is its growing debt – In 2016, the steel industry surpassed INR 3 trillion in debt. Most of the country’s steel and infrastructure projects are financed by the government. What India needs is more private sector involvement, but private players are hesitant due to complex regulations, a lack of business models and no guarantee on returns on investment (ROI). The government has also been slow to secure FDI because, over the years, India’s steel industry has displayed poor planning and management of projects as well as a mismanagement of funds.

India’s mining industry will directly affect the success of the steel industry. (Source: Pinterest)

Another major challenge has to do with India’s natural resource management, as mining companies do not have fair access to the country’s abundant resources. The mining industry is subject to heavy tax burdens including the royalty, local area development tax, forest development tax and much more as it is a profitable business for the government. Plus, the costs of meeting international environmental standards are passed directly onto mining companies. Thus, the price of iron ore and other minerals do not reflect the abundant supplies available, and the higher prices ripple into the steel industry.

Moreover, the government regards the steel industry as the backbone of India’s economy, but in reality, the times are changing.

Technological advances in the manufacturing industry is making the steel production process more efficient and less labor intensive. (Source: South China Morning Post)

In the past, 70,000 workers were required to produce 1.5 Mt of steel. Today, it takes about 3,000-4,000 workers to make 5 Mt a year. The steel industry is just not what it used to be in terms of the positive effects it had on the economy as a whole. The industry requires intensive capital and the only way it will survive is with low labor costs and maximum manpower productivity.

India needs to take full advantage of the country’s abundant resources and capitalize on its competitiveness to reach its full potential. In order to do so, India can start by examining other steel industries that served as the main driver for national economic growth, such as Korea’s.

Takeaways from Korea

After the Korean war in 1953, Korea had to build its economy up from scratch. Like India, the government chose to stimulate its steel industry and spent its war reparations payment from Japan to build POSCO’s steel mill in 1969. Since then, the state-led steelmaker has been a primary engine for Korea’s miraculous economic growth.

The construction of POSCO’s headquarters began in May 1968.

So how did Korea manage such growth?

The government allocated much of its resources to infrastructure construction for efficient logistics and implemented policies to support the mutual growth of steel and steel-consuming industries. Moreover, the government practiced protectionist trade policies long enough to get Korea’s steel business on its feet, then supported a market-driven business model.

The government also kept a close watch on supply and demand forecasts and updated its supply policies timely and accordingly. Factors such as demographic changes, industrialization patterns, urbanization and labor costs should be examined holistically to prevent the gap between supply and demand from increasing too much. For example, in 2010, the Korean government implemented capacity expansion policies that resulted in oversupply and a prolonged recession. This was because policymakers failed to diagnose the symptoms of the mid to long-term steel demand forecasts that showed sluggish demand. Since then, Korean policymakers keep close watch on such measures to update the country’s supply policies.

Finally, the Korean steel industry invested heavily in knowledge accumulation and R&D to wean off of Japan’s technical support and become an exporter of steel technology.

POSCO is now a leader in steel production technology.

Compared to Korea, India has an advantage in almost every aspect. The country’s per capita steel consumption is still low and the booming population will drive demand in steel-related industries. With much room for growth, the Indian steel industry can expect to see accelerated growth when paired with the right policies and government support.

The 2018 North American International Auto Show brought the biggest names in the auto industry together for a show and tell. (Source: News Atlas)

Continuing on what we saw during the past few years, the focus this year again was on improving safety, performance and design, all at the lightest weight possible for fuel economy. While there have been debates in the past about the best lightweight material, there was a clear winner at this year’s NAIAS. Almost every car, including the 2018 Car of the Year, was clad in advanced high-strength steel (AHHS) and significantly lighter than their predecessors.

Take a look at some of this year’s steel-clad cars.

SEE ALSO: 5 Reasons Why AHSS Tops the Market for Lightweight Auto Materials

2018 Car of the Year: Honda Accord

The 2018 Honda Accord took home the prestigious title of Car of the Year due to its lightweight and improved strength and performance. The 2018 model contains 29 percent ultra-high-strength steel (UHSS) in its chassis and 54.2 percent high strength steel (HSS). With these applications, the Honda Accord achieved a weight reduction of 110 to 176 pounds while improving its body torsional rigidity by 32 percent and its bending rigidity by 24 percent.

2019 Chevy Silverado

The all-new Chevy Silverado comes armed with plenty of steel. One of the features that contribute to its improved safety is the bed floor made of roll-formed HSS. Also, 80 percent of its fully-boxed steel frame is made of HSS and AHSS forms the Silverado’s safety cage. Overall, the new model is taller and 7 inches wider than before. Nevertheless, the all-new Silverado is 450 pounds lighter with a 10 percent increase in torsional rigidity than the previous model.

2019 Dodge Ram 1500

The 2019 Dodge Ram 1500 is another steel-intensive vehicle revealed at NAIAS. About 98 percent of this year’s model is made from HSS, and is the lightest, longest and most efficient frame in the half-ton truck segment. The wheelbase and crew cab is 4 inches longer than the previous model. The Dodge Ram 1500 also has several new safety features. The unique front-splayed frame rail technology, frame-mounted HSS tire blockers and fully-boxed side rails allow the car to absorb more energy in case of impact and minimize structural damage.

2019 Kia Forte

The 2019 Kia Forte is taller, wider and longer than before with 54 percent of its chassis made of AHSS. It also has a 16 percent stiffer body-in-white and the new seat frames are lighter yet stronger as Kia has its eyes on top ratings from the Insurance Institute for Highway Safety (IIHS) for the second consecutive year. The lighter and stronger vehicle will consume about 9 to 20 percent less fuel as well as drop noise levels by 5 decibels.

Why the Steel Overload?

As mentioned above, the latest cars are steel-intensive and automakers increasing the amount of HSS, UHSS and AHSS in their mix of materials. Of course, the main reason for this is steel’s innate properties that make it the ideal solution for automakers looking to cut back on weight and still satisfy safety standards. However, automakers also learned a good lesson from automakers who chose another popular lightweight material – aluminum.

SEE ALSO: Materials Matter: Why Steel Beats Aluminum in the Sustainability Debate

Back in 2014, Ford released its F-150 with an all-aluminum body. The move was bold and the cars sold fast as it was a whole 700 pounds lighter than previous models. Consumers got to drive away with a drastically improved fuel economy, but it didn’t take long for them to realize the big, expensive problem with aluminum bodies: repairs.

The 2015 Ford F-150 has an all-aluminum body. (Source: Hennessey Performance)

Although steel and aluminum are similar in terms of its lightweight properties, aluminum reacts differently than steel under heat. Aluminum does not have metal memory, while steel does, making it hard to reshape and repair following an accident. Welding aluminum also takes much more skill and precision than steel, and there are few repair shops that are equipped to handle aluminum. As a result, drivers not only have a hard time finding repair shops for their aluminum cars, they have to pay a hefty price for repairs compared to repairs for steel cars. For example, Jalopnik reported one of the first cases of the F-150 repairs back in 2015 cost USD 17,000 and a month-long repair time.

Of course, this was a rare case highlighting the steep learning curve of repairing aluminum vehicles, but it also highlights the fact that steel is still the norm when it comes to automotive materials, and judging from the 2018 NAIAS, it’s going to stay that way for quite some time.

Cover photo courtesy of Honda of Lincoln.

Scientists predict 2018 may be a tumultuous year for earthquakes. (Source: Take Two)

As structural damage is the leading cause of injury and deaths during an earthquake, architects, engineers and builders need to make sure buildings are built with the right materials and design.  

SEE ALSO: What it Takes to Build a Natural-Disaster-Proof House

The Materials

The most dangerous type of earthquakes are ones that trigger horizontal movements, because tall buildings are better at resisting vertical loads than horizontal ones. These ground motions can damage building foundations in a matter of minutes, causing severe injuries and deaths. Building a structure to withstand seismic waves starts with the right materials with the right properties, and steel is by far the most widely used material for building earthquake-resistant buildings.

According to the World Steel Association, ductile buildings are safer as they dissipate energy from seismic waves. A building will typically have ductile parts that can undergo plastic deformations without complete structural failure during an earthquake. Steel is the most common type of material for such parts.

Moreover, due to the law of inertia, the lighter the building, the less force seismic waves will exert on the building. That’s why it’s important, especially for taller buildings, to be made of light and flexible materials such as steel that can “bend” with the movement of earthquakes. On average, multi-story steel buildings are 60 to 70 percent lighter and 10 times stronger than concrete-framed buildings of the same size.

The Design

With steel, builders can add vital designs and reinforcements to keep the structure standing through an earthquake. Here’s some of the most widely-used measures.

Cross braces transfer the force of an earthquake to the ground. (Source: Earthquakes in India)

The structural integrity of buildings can be reinforced with steel cross braces that frame the exterior of a building in an x-shape. Ultimately cross braces can transfer the force of seismic waves back down to the ground, instead of letting the building take the hit. Builders can also reinforce the walls of buildings with additional vertical walls, or shear walls, that add stiffness to the frame of the building, allowing it to resist swaying or horizontal movements.

Base isolators absorb much of the shock of seismic waves. (Source: Embelton)

Base isolation involves separating the building from the foundation so that the isolators to absorb shock from the earthquake. The isolators allow the building to move at a slower pace because they dissolve a large part of the shock. Moment-resisting frames also effectively dissipate energy from floors and roofs to the building’s foundation and the stiff yet flexible frames can change shape during an earthquake. Although more costly, moment-resisting frames enable buildings to withstand an earthquake with excessive horizontal movement.

Putting it into practice with POSCO’s Steel House

In September 2017, Young Bae Kim’s home in Gyeongju province, Korea was hit with a 5.8 magnitude earthquake, just 8.9 km from where the earthquake started. Surprisingly, Kim’s home was unscathed. “I could feel the ground shake, but the house was completely under control.” Kim expressed.

Kim lives in one of the Steel Houses built by POSCO employees who volunteer to build homes and bridges for communities in need. Each Steel House is made with POSCO’s lightweight structural steel known for its durability, fire resistance and vibration resistance. The homes also incorporate PosMAC, a specialized galvanized steel that is 5 to 10 times more corrosion-resistant than standard steel and is more durable and affordable.

POSCO Employees volunteer their time to build steel houses in rural communities.

Because all the Steel Houses survived the Gyeongju earthquake while other homes were damaged, more and more people in Korea are choosing steel for their homes over traditional building materials such as wood and concrete. The same trend can be observed in Japan, where earthquakes are much more frequent. In order to build more earthquake-resistant buildings, steel is still the best solution available.

Cover photo courtesy of CNN.

However, these building projects are on another level of huge, and with all the megacities popping up throughout the country, China boasts many of the biggest infrastructure projects in the world. Here’s the Steel Wire’s look at some of the most impressive to date.

Three Gorges Dam

China is home to the largest dam in the world, measuring 1.5 miles in length and sitting 60 (!) stories tall. The Three Gorges Dam took 1.92 million tons of rolled steel to complete, along with 10.82 million tons of cement and 1.6 million cubic meters of timber. The dam opened in 2003 on the Yangtze River and last year, generated a record-high 97.8 billion kilowatt-hours of electricity, 4.35 percent higher than the previous year.

The Three Gorges Dam is the biggest dam in the world and is made up of 1.92 million tons of steel. (Source: Wikipedia)

Beijing Capital International Airport

Beijing Capital International Airport (PEK) was the second largest and busiest airport in the world in 2016, just behind the Hartsfield–Jackson Atlanta International Airport in the U.S. PEK recorded 94,393,454 passengers that flew in and out in 2016, a 5 percent increase from 2015, and is easily the biggest airport in all of Asia.

Beijing Capital International Airport is the biggest airport in Asia, and second in the world. (Source: Top China Travel)

The first phase of the airport cost USD 3.5 billion and was completed in 2008, but in order to handle the growing number of passengers, an expansion project is planned for 2025. The estimated 5-year project will almost double PEK’s capacity and cost an additional USD 13 billion.   

Jiaozhou Bay Bridge

China is also home to the longest sea-crossing bridge in the world. The massive structure stretches over 26.4 miles and connects the cities of Qingdao and Huangdao. The 110ft width accommodates 6 traffic lanes that are supported by 5200 steel pillars.

The Jiaozhou Bay Bridge is held up by 5200 steel pillars. (Source: Feel the Planet)

The bridge first opened in 2011 and took USD 2.3 billion and over 10,000 workers to build. The Jiaozhou Bay Bridge also took 450,000 tons of steel to complete, allowing the bridge to be able to withstand earthquakes up to 8.0 in magnitude, typhoons and the force from a 300,000-ton object.  

Jiuquan Wind Power Base

Not surprisingly, the largest wind farm in the world located in China. Jiuquan Wind Power Base is made up of 7,000 turbines that generate enough electricity to sustain a small country. The plant was approved in 2008, and the government has pledged an additional USD 17.4 billion by 2020 as part of the effort to develop China’s renewable energy industry. For now, only 3.3 percent of all the electricity generated in China comes from wind turbines. With the additional investment, Jiuquan Wind Power Base will be able to generate a massive 20 gigawatts of sustainable electricity.

The Jiuquan Wind Power Base generates enough energy to power a small nation. (Source: The New York Times)

New Century Global Center

What does the biggest building in the world look like? A mini country. Located in Chengdu, Sichuan province, the New Century Global Center combines a shopping mall, water park, hotels, movie theaters, offices, restaurants, ice rink and more into 19 million sq.ft. of space. The structure is made of glass and steel and measures 500 meters long, 400 meters wide and 100 meters high. Designed by architect Zaha Hadid, it even has artificial sun for the perfect weather, 24 hours a day.

The New Century Global Center located in Chengdu is the largest city in the world. (Source: Thousand Wonders)

Port of Shanghai

The world’s biggest ports are mostly located in China, and the biggest one is the Port of Shanghai. In 2012, 744 million tonnes of cargo and 32.5 million twenty-foot equivalent units (TEUs) of steel containers passed through the port. The entire area of the port on the Yangtze River covers 3,619km² comprised of 3 main ports: Wusongkou, Waigaoqiao and Yangshan Deep-Water Port. About 25 percent of China’s trade passes through the Port of Shanghai, or 2,000 steel container ships per month.

The Port of Shanghai is the largest port in the world and a quarter of China’s trade passes through it. (Source: Thomson Reuters)

Most recently, the 4th phase of the Yangshan Deep-Water Port was completed, making it the largest automated port in the world. It spans across 2.23 million square meters, and can automatically handle 4 million standard containers per year, or 25 per hour. It was also built to accommodate the heaviest ships in the world.

China is using its steel to build up the country’s infrastructure, and set world records along the way. Besides being impressive in size, the structures are expected to contribute to greater connectivity and economic prosperity throughout China.

Cover photo courtesy of Morgan Stanley.