A back at the Industry Pathway forward for a successful year · Refractory for Cement Industry...

$Page 1: A back at the Industry Pathway forward for a successful year · Refractory for Cement Industry Overview PREHEATER - 60% shaped products - 30% unshaped products-10% insulation materials$
A look back at the InduA look back at the Induhealthy successful yearhealthy successful yearhealthy successful yearhealthy successful year

ustry & Pathway forward for a ustry & Pathway forward for a rrrr

April 27th, 2015p ,

Refractories for Cement & Lime IRefractories for Cement & Lime IAgendaAgenda

AgendaAgenda

• Who is Magnesita

• Cement Production Overview



• Cement Process

• Refractory for Cement Industry

• Cement Process


• Challenges to Refractory Industry• Challenges to Refractory Industry

IndustriesIndustries2


AgendaAgenda





• Cement Process


• Cement Process




Company overviewMagnesita is a global leader in refractories s

More than 100 years of experience in refractorie

Magnesita is a global leader in refractories s

3rd largest player in the refractory sector worldwi

#1 in the steel and cement applications in Brazil a

#1 in cement applications in North Americapp

Highest vertical integration level in the industry (

Best, largest and lowest‐cost magnesite mine in t

i ifi b f l d i l i h iSignificant number of unexplored mineral rights i

Solid financial fundamentals

Magnesita in numbers

Revenues of R$ 2.66 billion in 2013

Production in 4 continents supplying globally toProduction in 4 continents, supplying globally to

6,250 employees

28 industrial facilities with more than 1 million to

4

solutions and industrial minerals

s and industrial minerals

solutions and industrial minerals

ide

and South America

~80%), fully self‐sufficient in high‐grade magnesite

the world outside China

i ilin Brazil

almost 1 000 clients worldwide in 90 countriesalmost 1,000 clients worldwide, in 90 countries

ons/year of refractories sold in 2013

4

Refractory industry overviewRefractories are crucial consumables for man

Industry overviewRefractories are fireproof materials consumed withinvarious production processes, providing heat, chemicald h i l i i i d i l f

Types o

and mechanical resistance in industrial furnaces

Their raw material are minerals with high meltingpoints, includingmagnesite, dolomite and alumina.

Crucial, but represents only ~3% of COGS in steelmanufacturing and less than 1% in cement

Refractories are consumables: ~10Kg per ton of steel;~0.6Kg per ton of cement

Refractories are continuously consumed during steel productio

Integrated

Blast Furnace Torpedo car BOF

1 to

~10gmill Iron Ore

900 tonnes~15 years

200 tonnes~2 years

Steel ladles800 tonnes~6 months

Conti

Mini-mill

70 tonnes~1 month

25~1

Scrap

EAF

5

Scrap120 tonnes~1 month

ufacturing processes with high temperatures

Monolithic

of refractories Main end markets worldwideSource: Freedonia.estimates 2013

Nonmetallic

Bricks SteelNon‐ferrous

(aluminum, copper, nickel, silver, zinc)

(cement, glass, lime)

~60%

~15%

~15%

~10%

Pre castables, valves and slide gates

Other (pulp&paper, petrochemical, ceramic,

other)

10%

n… …and other industrial processes

on of steel demands

-15 Kg of refractories

1 ton of cement demands

~1 Kg of refractories

nuous casting 1 ton of glass demands


5 tonnes10 hours

1 ton of aluminum demands


1 ton of copper demands

5


Global scale with local presence in key mark

Unique global footprint

Sinterco Dolomite JV (BEL)

Global scale, with local presence in key mark

Sinterco Dolomite JV (BEL)

York Dolomite Mine (USA)York Production Unit (USA)

Valenciennes and FlaumontProduction Units (FRA)

Magnesite Mine

York Production Unit (USA)

Clay Mine (Uberaba – BRA)

Aratu Port

Talc Mine (Brumado ‐ BRA)

(Brumado – BRA)

Contagem Production Unit (BRA)

Chromite Mine (Santa Luz ‐ BRA)

Aratu Port

Contagem Production Unit (BRA)Coronel Fabriciano Production Unit(BRA)

San Nicolás Production Unit

Production Units

Mines

Headquarters

Sales Offices and Sales Representative

6

kets with an integrated supply chainkets, with an integrated supply chain

Hagen‐Halden, Oberhausen andKruft Production Units (DEU)

Dalian Production Unit (CHN)

Qingyang Dolomite Mine (CHN)Chizhou Production Unit (CHN)

Taiwan JV’sProduction Unit (CHN)

12%

19%

37%

19%

21%

6


AgendaAgenda





• Cement Process


• Cement Process




Cement Production OverviewCement Production OverviewProduction WorldwideProduction Worldwide

4 125 3W ld

Cement Production 2015 Forecast (Mton)

/ +4%

636.3

2,566.1

4,125.3

Asia Ex-China

China

World / +4%

/ +3%

/ +4%

111.8

140.3

311.2

CIS

EU - 28

MEA / +6%

/ +2%

/ +6%

75 6

84.6

83.8

Brazil

Non - EU

United States / +6%

/ +6%

/ +5%

37.1

55.4

75.6

Mexico

SAMOB

Brazil / +5%

/ +7%

/ +4%

10.4

12.7

32.1

Oceania

Canada

Germany / +3%

/ +5%

/ +3%

Source: CW Group – GCVFR – 2H2012

83%74%

96%82%

Capacity Utilization 2015 Forecast

%68% 74%

63%70% 68% 66% 68% 62%

52%65% 71%%

AmericasOthers

5%

2015 Cement Production by Region

MEA8%

EU - 283%

6%5%

China62%Asia Ex-China

16%

8%

Cement Production Overview Cement Production Overview World ProductionWorld Production

• C

I• In

• UU

9

China:• 57.5% of world total• Was 29% in 1994• 1.4ton per inhabitant

dindia:• 227 kg per inhabitant

USA:USA:• 244 kg per inhabitant

Cement Production Overview Cement Production Overview Consumption per Capita Consumption per Capita vsvs GDPGDP

Many countries are approaching a GDP per capita thhat could favor faster growth in cement consumption

Cement Production Overview Cement Production Overview Main Producers WorldwideMain Producers Worldwide

Rank Company/Group Country Capacity 1 Lafarge France 2252 Holcim Switzerland 2173 CNBM China 2004 Anhui Conch China 180

5 HeidelbergCement Germany 1186 Jid Chi 1006 Jidong China 1007 Cemex Mexico 968 China Resources China 899 Sinoma China 879 Sinoma China 87

10 Shanshui China 8411 Italcementi Italy 7412 Taiwan Cement Taiwan 7013 Votorantim Brazil 5714 CRH Ireland 5615 UltraTech India 5316 Huaxin China 5216 Huaxin China 5217 Buzzi Italy 4518 Eurocement Russia 4019 Tianrui China 3520 Jaypee India 34

11

(Mt/yr) No. of plants5 1667 1490 690 34

8 710 1000 100

611624241355-

3711125151391611 Global cement companies 1-20 ranked by capacity.

S A l t f ti i d16 Source: Annual reports of respective companies and their websites and the Global Cement Directory 2013.

Cement Production Overview Cement Production Overview Production Trends Production Trends –– USAUSA

• Dynamic regional market conditions driving

• Pressure to meet Tightening Air-Quality En

• Continued Modernization of “Older” produc• Continued Modernization of Older produc

• Widespread requirement for Low Alkali Cem

• Cost pressures encouraging trials of low-coCost pressures encouraging trials of low coPCA Market analysis 2014

12

g production demands

nvironmental Standards

ction equipmentction equipment

ments

ost imported refractoriesost imported refractories


AgendaAgenda





• Cement Process


• Cement Process




Refractory for Cement Industry Refractory for Cement Industry OverviewOverview

PREHEATER- 60% shaped products- 30% unshaped products- 10% insulation materials

Tertiary air du- 75% shaped p- 10 % unshape- 15% insulation

Rotary Kiln50% basic bricks20% high alumina brick25% fireclay brick5% castables

s

uct

Kiln Hood10 % shaped75% unshaped

productsed productsn materials

75% unshaped5% insulation

C lCooler5 % shaped80% unshaped15% insulation

Cement Process Cement Process Different Process TypesDifferent Process Types

Various Cement Processes

4333

50

US & Canada – Un

26

13

33

7

25

0

15

• 5 Stage Preheater• 4 Stage Preheater• 4 Stage Calciner• 4 Stage Calciner• Dry (Long)• Preheater• Wet (Long)• Dual 4 String CalcinerDual 4 String Calciner• 2 Stage Preheater• 1 Preheater• Trav. Grate

its per Process Type

102 3 2 12 3 2 1

Cement ProcessCement ProcessProcess Profile 2005 x 2014Process Profile 2005 x 2014

57

50

60

2005

27

36

30

40

50

1110

20

0

• Average consumption 1.21 kgs/ 1000 mtn o• 44,000 mtn of Basic consumed yearly • Installed Rated Capacity of 110 Mmtn/yrsta ed ated Capac ty o 0 t /y

50

1 36

11 1

of production

Cement Process Cement Process ProcessProcess Profile 2005 x 2014Profile 2005 x 2014

50

60

2014

26

43

33

30

40

50

13

710

20

0

Average consumption down from 1.21 kgs/mt

10

2 3 2 12 2 1

n(x000) to 0.43 kgs/mtn (x000)

Cement Process Cement Process --FuelsFuelsProcess Profile 2005 x 2014Process Profile 2005 x 2014

1127

57

3650

62030405060

2005

111 3 6 1

01020

Production Process TypeFuel and Fuel Mix

G• Natural Gas• Coal• Pet Coke• Bunker C OilBunker C Oil• Whole Tires

26

43

13

33

7 102030405060

2014

7 102 3 2 1

01020

Production Process TypeFuel and Fuel Mix• Natural Gas• Coal• Pet Coke• Whole TiresWhole Tires• Shredded Tires• SWDF• Engineered Fuels• Car Chaff• Glycerol• Waste Oils• Asphalt Shingles• Asphalt Shingles• Creosote Wood

Cement Process Cement Process AlternateAlternate FuelsFuels

60

40

50

ptio

n [%

]

30

40

Fuel

Cons

um

CC

PhosphatePhosphate

20

tive S

peci

fic

Chlorine / SulphateChlorine / Sulphate

PhosphatePhosphate

10

Rela

Sulphur / ZincSulphur / Zinc

Chlorine / FluorineChlorine / Fluorine

01996 1997 1998 1999 2000 2001 2002 2003 2

Year

Sulphur / ZincSulphur / Zinc

Merc rMerc rMunicipal WasteMunicipal Waste

Sewage WasteSewage Waste

MercuryMercuryZinc Zinc CadmiumCadmium

PlasticPlastic

AnimalAnimalMeat / Bone / FatMeat / Bone / Fat

ChlorineChlorine Pulp / Paper / CardboardPulp / Paper / Cardboard

PlasticPlastic

Other Industrial Other Industrial WasteWaste

TyresTyres

Waste OilWaste OilSolventsSolvents

2004 2005 2006 2007 2008 2009 2010

TyresTyres


AgendaAgenda





• Cement Process


• Cement Process




Refractory for Cement Industry Refractory for Cement Industry Operational Impacts to Refractory LifeOperational Impacts to Refractory Life

• Solid Fuel /AF Program• Uncoated Exposure• Reducing AtmosphereReducing Atmosphere• Condensation of Clinker

Materials

Thermal Effects

St t /Sh td

Operator Effects

• Start-up /Shutdown Procedures

• Operator reaction to Coating failure

• Feed On/Off procedures• Feed-Speed Ratio’sFeed Speed Ratio s

• Speed of Rotation• Drive Pier Location• Tire Condition (Ovality)Tire Condition (Ovality)• Tire Span /Overhang• Kiln Thrust (Movement)

Mechanical Effects

S d M t i l i t

Chemical Effects

• Secondary Materials input• Insufflation Practices• Kiln Dust Return• Clinker Type changes

Refractory for Cement Industry Refractory for Cement Industry Base Brick ComponentsBase Brick Components

Direct bonded Dolomite system’sChemically compatible with ConditIncreased MgO % reduces coatingIncreased MgO % reduces coatingCoating is removed in process onlyCoating easily maintained through Largest single product used in Sint

CC44AFAF

g g p

cement clinkercement clinkerCC33SS

MgOMgO

CC33AA

dolomitedolomiteCaOCaO

0,200 mm0,200 mm

tions present in the main sintering zoneg while increasing corrosion resistanceg while increasing corrosion resistancey with extreme overheating conditionsflame off conditions by reduced ∆t

tering zones. (U.S. & Canada)g ( )


In-Situ spinel bondingConsidered in general as 1st. GeneUsing coarse Tabular alumina to foUsing coarse Tabular alumina to foLimited on % addition because of eMay be added in combination with More commonly seen in imported ry p

eration spinel systemsorm spinel under primary firingorm spinel under primary firing.expansive reaction in firing.pre-reacted Spinel

refractories (China)( )


Sintered Spinel Bonding Termed as 2nd. Generation spinel Sintered spinel additions range in sSintered spinel additions range in sSintered spinel overcame issues wThis pre-reacted spinel does not haImproved bonding to fine MgO Matp g g

systemssize from fine to intermediatesize from fine to intermediate

with addition ratesave the reaction in-situtrix


Fused Spinel Bonding Termed also as 2nd. Generation spFused spinel additions intermediateFused spinel additions intermediateGenerally regarded to possess higLimited surface area to reduce poteLower potential for matrix bondingp gImproved expansion mis-match for

pinel systemse through coarsee through coarseher thermal resistanceential CaO·Eutectics

r shock resistance


Ferro-Aluminate spinel bonding HercynConsidered in general as sub-clasFe Al system to enhance flexibilityFe·Al system to enhance flexibility Lower Fe systems more successfuMay be added in combination with Limited to coating stable environmeg

itess of 2nd. Generation spinel systemsand encourage coating formationand encourage coating formation

ul because of REDOX reactionspre-reacted Spinel ents

Coating Mechanism FeAl Spinel Systems

Refractory for Cement Industry Refractory for Cement Industry CoatingCoating

• Cyclic Operations created a market for non-h• Recent applications of Fe+ Aluminate spinels• Under steady-state operations Fuel Feed Ch

Coating Mechanism FeAl Spinel Systems

Under steady state operations Fuel,Feed, Chperformance

• Present operations depend on multiple fuel s• Refractory is compromised when exposed; re• Described as the Kirkendall effect

Kirkendall effect: Formation of intercrystalline voids due to MgFe2O2-

d ti i I t i i i lreduction in Iron containing spinel systems

hydratable systemss were offered to fulfill this requirementhemistry these systems provide acceptablehemistry these systems provide acceptable

sources, and variable raw feed structuresesulting in reaction on the Fe+ component

Unique MgO’s with Fe phase in the interior of the grain are able tointerior of the grain are able to reduce this effect. (Magkor A3)

1º , 2º, 3º STAGES: GASES AND RAW

BRICK SIAL 45 RK

CASTABLE TAFGUN –

ANCHOR 304 SS AN

PRECALCINER

BRICK

CASTABLE

ANCHOR

SMOKE CHAMBE FLOWGUN AZSM SIC

KILN

R – FLOWGUN 65 AR

ANCHOR 310SS

CALCINATION SIAL 45 RK – ALUKOR 60D – ALUKOR 85 B

UPPER TRANSITION ZONE

MAGKOR A1 – MAGKOR A3 – MAGKOR B1 – MAGKOR S1 – MAGKOR S3 – D6FZ

BURNING ZONE DMX – D6FZ – D7FCZ – MAGKOR A3 –MAGKOR B3

LOWER TRANSITION ZONE

MAGKOR B1 – MAGKOR B3 – MAGKOR S2 – MAGKOR S1 – MAGKOR S3 – D6FZ

W MEAL PIPES

K / EXACTA 43S4º 5 STAGES: GASES AND RAW MEAL PIPES– FLOWGUN 40

NCHORS

4 , 5 STAGES: GASES AND RAW MEAL PIPES

BRICK ALUKOR 60D – EXACTA 43 S

CASTABLE FLOWGUN 50-60 – TAFGUN 40Z AR

ANCHOR 310SS

ALUKOR 60D

FLOWGUN 60 – FLOWGUN AZSM SIC

310 SSTAD – TERTIARY AIR DUCT

BRICK EXACTA 43 S – ALUKOR 60 D - IFB

CASTABLE FLOWGUN AZSM SIC –TAFGUN 60 LC

ANCHOR

KILN HOOD

BRICK ALUKOR 60D – ALUKOR 85B

CASTABLE TAFKAST 75 LC – TAFKAST AZSM SIC

ANCHOR 310 SS

BURNER TAFKAST SP –TAFKAST 75 LC

“NOSE RING”

TAFKAST 75 LC –TAFKAST MULSIC X

ANCHOR 310SS


AgendaAgenda





• Cement Process


• Cement Process




Refractory Optimization ModelRefractory Optimization ModelCampaign PlanningCampaign Planning

Campaign planning is a combined activity betw

Process History

OperationTargets

O tiOperation Conditions

30

ween Plant and Magnesita

Lining Definition

R f

PerformanceTargets

Refractory Design

Refractory Optimization ModelRefractory Optimization ModelLogistic ManagementLogistic Management

Logistic Management allows a better planningfulfill programmed and unexpected demands.

Kiln Profile Outage Schedule

Cement Model

Refractory demand:Brand, Shape, Quantity

31

to

Refractory Optimization ModelRefractory Optimization ModelAdvanced Technical EngineeringAdvanced Technical Engineering

Advanced technical engineering: focused in pimprovement

32

performance follow-up for continuous

How Are you positioned for the fHow Are you positioned for the f

C t I t d f t S t bCurrent Imported refractory Systems may be on older Spinel technology

Lining designs have been compromised to accLining designs have been compromised to acclower run factors

Refractory companies have “Blurred” the linesbetween Legacy Brands and 3rd Party outsource

Monolithic Materials are largely sourced throunetwork which limits a companies ability to qualifynetwork which limits a companies ability to qualifyquality systems

Monolithics in General will become the next Corporately controlled commodity

There will be a natural swing back towards HigPurity systems to meet this ramp up in performanPurity systems to meet this ramp up in performan

Companies need to continue to monitor refracinstallations for quality in all aspects of placementq y p ppractices

futurefuture

b dbased

count forcount for

s d brands

gh CI y highery higher

gher ncence

ctory t and

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A back at the Industry Pathway forward for a successful year · Refractory for Cement Industry...

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