Ukrainian Metallurgical Enterprises Have Continued The Upgrading of Blast Furnaces

Ukrainian metallurgical enterprises have continued the upgrading of blast furnaces by installing coal injection facilities amid gas price hikes and tough competition on the domestic and foreign markets in 2012.

Mr Anatoliy Starovoit director general of Dnipropetrovsk based Ukrkoks association of coking and chemical enterprises, told Interfax Ukraine that in 2013 smelters plan to produce 13.5 million tonnes of pig iron with coal injection technology out of next year's target of 30 million tonnes. However, Starovoit did not specify the share of pig iron produced in 2012 with coal injection technology.

In his words, coal injection facilities are being used or will be shortly used at 13 blast furnaces.

Mr Starovoit said that "Coal injection facilities are in operation or being commissioned into industrial operation at Zaporizhstal steel mill (two blast furnaces), Donetsk metal works (two blast furnaces), Alchevsk steel mill (four blast furnaces) and Mariupol-based Illich steel mill.”

The Dnipropetrovsk based Metallurgprom association of metallurgical enterprises said that as of December 1st 2012, in operation were 27 out of 36 blast furnaces (75%), 19 out of 21 converters (90%), eight out of 16 open hearth furnaces (50%), and five out of 15 electric furnaces (33%).

Thus, over a third installed blast furnaces employ coal injection technology, which is about half of those in operation.

Mr Starovoit said that "Ukraine produces about 300,000 tonnes of such coal, while a total of 1.8 million tonnes is needed. Ukraine will buy about 10 to 10.5 million tonnes of coking coal or high-quality concentrate abroad for coal injection facilities and coke production next year.”

Yet, he said that consumption and imports of coking coal will not increase because of a reduction in its consumption of coke by blast furnaces.

In his words, coal injection facilities is conducive to a cut in pig iron production costs by USD 40 to USD 45 per tonne, which makes Ukrainian pig iron producers more competitive compared to other enterprises.

He said that "The peers in Russia note that high prices of gas have made the upgrading of our blast furnaces more active, while they do not work in that direction, which may become a problem for them under market-oriented economic conditions with WTO membership.”

He also said that blast furnaces at ArcelorMittal Kryviy Rih and Dniprovsky Dzerzhynsky steel mill will be transferred to pulverized coal fuel in the near-term outlook.

He concluded that "Economic feasibility will facilitate the introduction of coal injection in all the blast furnaces in Ukraine, which will boost the competitiveness of pig iron production.”