International Nickel Study Group foresees stainless steel rebound and ongoing battery material demand.
Delegates to Lisbon-based International Nickel Study Group (INSG) meetings held in mid-October see some bright spots in nickel demand in 2023, citing a stainless steel sector rebound and continued growth in electric vehicle (EV) battery demand.
INSG says industry representatives from member countries, observers and several international organizations participated in the meetings. Several of the participants cited “the combined impact of the COVID-19 pandemic and the situation in Ukraine” as having “resulted in energy constraints, higher inflation and lower economic growth,” which they say “has led to increased uncertainty in the global commodity markets.”
The Brussels-based World Stainless Association (formerly the International Stainless Steel Forum, or ISSF) released figures for the first three months of 2022 showing stainless steel melt shop production decreased by 3.8 percent year-on-year in that timeframe to 14.5 million metric tons.
For all of 2022, the INSG says it expects negative growth in the stainless steel sector but increasing consumption of nickel in EV batteries. In 2023, both sectors are projected to grow, says the group.
The difficult conditions in the stainless sector have prompted recyclers of that metal to secure financing to weather the difficulty. Investments in nickel-bearing battery recycling, meanwhile, have been steady and growing.
INSG says it expects nickel pig iron (NPI) production to continue to rise in Indonesia, but to further decline in China. “The conversion of Indonesian NPI to nickel matte in the country is anticipated to surge,” writes the group.
Intermediate products such as nickel matte made in Indonesia with NPI will continue to be “exported to China to be further processed into nickel sulphate to produce EV batteries,” according to INSG.
World primary nickel production was 2.61 million metric tons in 2021 and is forecast to rise above 3.03 million metric tons in 2022 and then rise another 11.5 percent to 3.387 million metric tons in 2023. That forecast, says INSG, does not include “any adjustment factor for possible production disruptions.”
Based on nickel consumption figures and forecasts, INSG writes, “The implicit market balances are therefore a deficit of 163,000 metric tons in 2021 and surpluses of 144,000 metric tons in 2022 and 171,000 metric tons in 2023.”
Historically, says INSG, market surpluses have been linked to London Metal Exchange LME deliverable/Class I nickel. However, in 2023 the surplus will be mainly due to Class II and nickel chemicals–principally nickel sulphate, which is used in batteries.
The next INSG meetings have been scheduled for April 2023.
CEO of Indiana-based steel producer says its order book remains “solid,” while lower pricing reduced profits in its recycling unit.
Fort Wayne, Indiana-based Steel Dynamics Inc. (SDI) has announced third quarter 2022 net income of $914 million, or $5.03 per diluted share. That compares with a $6.44 per share figure in the prior quarter, but is up from $4.85 per share one year ago.
“The team delivered a strong performance during the quarter,” says Mark D. Millett, chair, president and CEO of SDI. “These results continue to display the power of our highly diversified, value-added, circular manufacturing model — as the strength in our steel fabrication operations meaningfully offset lower earnings in our flat-rolled steel businesses, with realized flat-rolled steel selling values declining almost 15 percent during the quarter.”
Despite wider economic concerns centered on inflation and higher interest rates, Millett says demand for SDI’s steel products remains strong. “We achieved record quarterly steel shipments of 3.2 million tons, as a result of steady steel demand, led by the construction industry, and complemented by the automotive, industrial and energy sectors.”
SDI says third quarter 2022 operating income from its metals recycling operations “meaningfully declined sequentially to $10 million, as a result of lower sequential ferrous and nonferrous scrap pricing and lower volume.”
The scrap-fed electric arc furnace (EAF) steelmaker says its “realized average ferrous scrap pricing” declined almost 30 percent during the third quarter. SDI says it “believes scrap prices have stabilized for the remainder of the year.”
SDI cites “metal spread compression” for third quarter 2022 operating income in its steel operations that declined more than 50 percent compared with one year ago, to $658 million, “despite record volume.”
Says Millett, “Ferrous scrap pricing indices have decreased each month beginning in May and continued through October 2022, resulting in significantly lower earnings from our metals recycling operations. In contrast, our steel fabrication business achieved another record quarter, with earnings of $677 million, based on higher realized selling values, declining steel input costs, and a continued steady construction demand environment.”
Looking ahead, the CEO comments, “Customer order entry activity continues to be healthy across our businesses, with expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months. Despite weaker flat-rolled steel pricing, our order activity and backlogs remain solid. We believe North American steel consumption will remain steady, and that demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing.”
Regarding SDI’s newest mill, Millet says, “Operations continue to ramp up at our Sinton Flat Roll Steel Division. The product surface quality is excellent, and grade development and dimensional tolerances have exceeded our expectations. The Sinton team has been running at a rate of 65 percent during October and achieving rates of over 80 percent for several single day periods, supporting our expectations to achieve a run rate of at least 80 percent for the full year 2023.”
Millett also has provided an update on SDI’s venture into aluminum, commenting, “We are quickly progressing on our aluminum flat-rolled products mill and are incredibly excited about this meaningful growth opportunity, which is aligned with our existing business and operational expertise.”
He continues, “We have intentionally grown with our customers’ needs, providing efficient sustainable supply-chain solutions for the highest quality products. Thus far, this has primarily been achieved within the carbon steel industry — however, a significant number of our carbon flat-rolled steel customers are also consumers and processors of aluminum flat-rolled products. We are pleased to further diversify our end markets with plans to supply aluminum flat-rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors.”
Concludes Millett, “We believe there are strong drivers for our continued growth, and we remain in a position of strength. Our planned investments in a new state-of-the-art low-carbon aluminum flat-rolled mill and associated recycled aluminum slab centers continues our strategic growth, is aligned with our core steelmaking and recycling platforms, benefits many of our existing customers, and provides for future value creation. We are well-positioned for sustainable long-term growth.”
An Ocala, Florida, official says the RevAmp reduces daily fuel costs to $30 from $175 with a diesel truck.
Heil Environmental, Chattanooga, Tennessee, a major manufacturer of refuse collection vehicle (RCV) truck bodies, has introduced the RevAMP, an electric automated sideload (eASL) truck body.
A part of Environmental Services Group (ESG) and Dover Corp., Heil’s RevAMP eASL is equipped with a fast, efficient electric lift arm and auger-style compactor that reduces the energy required for refuse collection, the time spent at each collection stop and noise levels from vehicle operation in residential areas.
Heil’s RevAMP electric body has its own energy source and can be mounted on any chassis powered by electric, diesel or compressed natural gas (CNG). When mounted on a diesel or CNG-powered chassis, the RevAMP can save up to 4,000 gallons of fuel annually per truck by eliminating the power required from the drive unit’s engine. When mounted on an electric chassis, the RevAMP’s self-contained battery eliminates additional drain on the chassis power system, extending the range of the vehicle. In addition, it can be integrated with the electric vehicle (EV) chassis’ battery to provide backup power to the body. if needed.
“By electrifying the body functions that would require diesel power from the drive unit of a typical RCV, we are able to reduce each vehicle’s greenhouse gas emissions by a massive 41 metric tons per year,” ESG President Pat Carroll says. “The RevAMP perfectly exemplifies ESG’s commitment to improving the lives of our customers and their communities by delivering improved performance, significant fuel cost savings, and, most importantly, providing immediate and long-term environmental and sustainability benefits.”
Although the RevAMP reduces costs and emissions when mounted on a diesel chassis, the maximum impact is realized when the body is paired with an electric chassis. The absence of hydraulic components eliminates the risk of unaesthetic, hazardous hydraulic fluid leaks. Additionally, a smaller number of components and a streamlined body construction simplify maintenance needs over time.
The city of Ocala, Florida, was the first municipality to add the RevAMP ASL to its fleet, ESG says.
“A diesel RCV typically costs us about $175 per day in fuel, whereas the RevAMP mounted on an electric chassis will only cost $30 to accomplish the same job,” Ocala Fleet and Facilities Director John King says. “After an exhaustive comparison of all the electric refuse equipment currently on the market, the performance, fuel-cost savings and meaningful environmental benefits of the Heil RevAMP made it the clear choice for us.”
Municipal and private waste haulers are recognizing the value of switching from diesel to fully electric refuse trucks. A vehicle such as the RevAMP purchased by the city of Ocala, operating five days per week, would deliver an annual fuel-cost savings of approximately $37,700 per year, per truck.
Carroll says the RevAmp’s onboard battery “extends the range of the vehicle on a single overnight charge.”
Although most electric vehicles require a tradeoff of performance for environmental benefits, Heil Vice President of Product Development Brandon Volner says that’s not the case with the RevAmp.
“In fact, the lightweight RevAMP body increases the available payload of the vehicle, enabling more homes to be serviced each day by a single truck. In addition, the fast, smooth electric arm provides the operator with a reliable, highly productive tool needed to complete waste routes quickly and efficiently, day in and day out.”
Those who would like a closer look at the Heil RevAMP can register for a virtual trade show Nov. 10 at 11 a.m. Eastern Time.
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The company says its new Revia product is suitable for a wide range of uses and will launch with paving material in January.
Water and housing product maker Lixil Corp., Tokyo, will introduce a new line of material made from a combination of plastic and wood scrap in early 2023 that the company says will be suitable for a wide range of uses.
Lixil says its new Revia material combines its expertise in pulverizing and molding plastics along with the addition of wood scrap typically generated from the demolition of buildings. Revia can be made from most household and commercial plastic material, including composite types and marine plastics.
The company says that utilizing plastic and wood scrap to create one ton of Revia that would have otherwise been incinerated could result in an 82 percent reduction in carbon dioxide emissions, and Revia material itself can also be recycled and collected to become a new Revia product.
“Low recycling rates and pollution caused from plastic consumption is an environmental issue across the world,” Lixil President and CEO Kinya Seto says. “As a maker of pioneering water and housing products, we are committed to the responsible use of resources, and driving innovation to solve real-life challenges. With Revia, we aim to create an ecosystem that spans procurement to production, sales, installation and collection, establishing a sustainable business model that can be scaled. By doing so, we want to maximize our positive impact for the environment.
“Starting in Japan, and with the cooperation of partners and stakeholders including local and national governments, Lixil believes that Revia can accelerate the shift to a circular economy and make better homes a reality for everyone, everywhere,” Seto says.
The first Revia product, called Revia Pave, will be available for sale in Japan starting Jan. 10, 2023. Lixil says that Revia Pave is a paving material suitable for sidewalks, nature trails in national parks, plazas between office buildings and commercial facilities and smart cities.
Lixil says that Revia Pave has a textured surface that resembles the appearance of wood, is comfortable to walk on, highly durable, weather resistant, strong and weighs half as much as concrete paving material.
Twelve-story Western United Life Building receives an approval step toward its long-discussed demolition.
The owner of a 12-story building in Texas that a regional public radio station says has been abandoned “for decades” has received approval from the Midland City Council to demolish the structure next year.
The mid-October approval for the demolition of the Western United Life Building involves allowing the owner to spend more than $3 million on a demo project that may also include “a few other nearby properties,” according to Marfa Public Radio in Texas.
The radio station says property owner Midland Development Corp. has indicated it intends to undertake the demolition project next year.
Sara Harris, executive director of Midland Development is quoted as calling the demolition “bittersweet,” but adds, “It’s really exciting to be able to replace a vacant building with something that is going to complement what we see ongoing with the revitalization of downtown Midland.”
The property owner has reportedly contracted with Bedford, Texas-based Midwest Wrecking Co. to demolish the Western United Life Building and the other targeted properties. That contract has yet to be finalized for acceptance by either the developer or Midland City Council, Marfa Public Radio says, though it is expected to be by the end of the month.
Another regional media report indicates there are three other buildings to be taken down, all located on the same city block in Midland’s central business district.
Reporting from KWES-TV indicates Midland Development acquired the 12-story building in 2018 with the intent to renovate and redevelop it, but found no cost-effective way to do that.