Latest news with #blastfurnace
Daily Mail
2 days ago
- Science
- Daily Mail
Britain must retain the means of making iron, says Sir Andrew Cook
Sir Andrew Cook is a leading British industrialist. 'Iron, Cold Iron, is the master of men all'. So reads Rudyard Kipling's memorable poem, and so might the steel men of Scunthorpe have recited with relief when learning their jobs had been saved from the Chinese wrecking ball. This steelworks, and its blast furnaces in particular, has been much in the news recently, the commentary fuelled more by ignorance and emotion than plain fact. For that fact is that a blast furnace, for all its association with the crag-jowelled ironmasters of nineteenth century England, is essential to any modern nation wishing to remain in what we still call the first world. Put aside the issues of pollution and climate change and consider instead the reality. You cannot make steel without iron, and you cannot make iron without a blast furnace. For iron does not exist naturally in its pure state. It is embedded within a brownish-coloured rock called iron ore. To extract the iron from the rock, the rock has first to be smelted. The term 'smelting', as you would expect, refers to melting plus something more. The 'something more' in this case is a chemical reaction which changes the fundamental composition of the material being smelted. In chemistry terms, the composition of the rock – iron ore – is changed into two separate materials, iron itself, and a residue which we call slag. This process can only be done in a blast furnace using coke, a fuel derived from coal, which provides both the heat and the carbon, the two being essential to the reaction. Iron ore plus carbon plus heat gives you iron plus slag. The slag goes mostly to waste – some is used to make roads. The iron is now ready to be made into steel. 'But can't you also make steel in an electric arc furnace? This is what we are told, and the arc furnace is so much greener. Isn't all that carbon dioxide that the blast furnace spews out avoided with the arc furnace?' I am sorry to disappoint you but the answer is 'No' on both counts. An electric arc furnace can only reprocess old scrap steel. Iron ore, being a rock, doesn't conduct electricity. Moreover, repeated recycling of old steel gradually de-purifies it, with levels of contaminants building up to a point where the steel cannot be used for certain essential purposes, notably military and medical use. So if you need pure steel, you need iron, and if you cannot supply the iron yourself, you have to import it. Someone, somewhere, has to use a blast furnace to make the iron from which is made the steel. Who is that someone? Well, if Britain has no blast furnaces, it has to be from across the English Channel, and possibly from a distant, and maybe potentially hostile part of the world. They can refuse to supply or charge us what they like. China uses its vast steel industry as a geo-political tool, its objective being to destroy those of weaker countries unwilling or unable to defend their own. Moreover, it is a known fact that the quality of Chinese steel cannot be trusted – just ask any construction worker. 'OK' you say, 'but what about the massive carbon footprint of the blast furnace?' Let there be no doubt, the blast furnace does emit a large quantity of carbon dioxide. But set this against three facts. Firstly, carbon dioxide is not a poison. It is an inert gas essential to plant growth. Without it, there is no food and the human race dies out. Secondly, if Britain does not have a blast furnace, the country's needs must be satisfied by someone else's. Global iron production indelibly emits a set quantity of CO2. The effect of Britain closing its blast furnaces on worldwide carbon emissions is precisely zero. And thirdly, don't get the idea the electric arc furnace is carbon-free. It also emits CO2, produced by its carbon electrodes, which steadily turn into gas as the melting process consumes them. As in most things, a balance must be struck. If Britain wishes to remain in the first rank of nations, it needs a steel industry, and this has to include at least one blast furnace. If it wishes to be self-sufficient in the manufacturing of steel products, essential to national security and well-being, it must retain the means of making iron. Britain has the skills, the equipment, and the essential coking coal from the Cumberland mine that has been short-sightedly refused planning permission by the authorities. Let common sense now overcome ignorance and emotion. The nation's security and industrial well-being are at stake.
Yahoo
23-05-2025
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than United States Steel 5 Years From Now
United States Steel is an iconic steelmaker, but it is no longer an industry leader. Nucor and Steel Dynamics are both built on more modern steelmaking technology. Nucor and Steel Dynamics both have stronger growth models then US Steel. 10 stocks we like better than Nucor › United States Steel's (NYSE: X) place in history is secure, given how important the company was to the creation of the steel industry. But US Steel is no longer the industry-leading company it once was. Here's what's going on with this iconic steelmaker, and why peers Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) will likely be worth more than US Steel in five years. US Steel makes steel, but that's not really the important thing here. It is the way in which US Steel makes steel that's notable. Although it has diversified its production processes, the business was built on blast furnaces. This is an older steelmaking technology that uses iron ore and metallurgical coal to create primary steel. This is still an important thing to do, but blast furnaces are only profitable when they are run at high utilization rates. During steel industry downturns, when demand is weak and steel prices are low, blast furnaces tend to bleed red ink. This is why US Steel has been focused on building electric arc mini-mills, which use scrap steel and electricity to produce new steel products for sale. This technology is more flexible than blast furnace technology and can be ramped up and down with demand. Thus, electric arc mini-mills tend to have more attractive profit margins through the entire steel cycle. This technology is what underpins the businesses of both Nucor and Steel Dynamics. It is the first, and most notable, reason why investors will likely be better off buying either of these two steel mills over US Steel. But there's more than just this foundational fact to consider. The second big issue around US Steel today is that it is what's known as "in play" on Wall Street. Currently, there's a plan for the company to be bought out by a large Japanese steel mill (Nippon Steel). That deal has become a political football, so there's no telling whether it takes place. If it doesn't, US Steel has other suitors waiting in the wings. But that doesn't mean a transaction will happen. If US Steel gets bought by Nippon Steel or someone else, it will cease to exist as a stand-alone business. If it doesn't get bought out, it still has the problem of making primary steel using blast furnaces. Either way, investors are probably better off avoiding US Steel and buying either Nucor or Steel Dynamics, or both. The third big reason to like Nucor and Steel Dynamics over US Steel is that they each have very specific growth plans. Nucor is investing in new facilities and expanding its reach, often via acquisition, into higher-margin steel parts businesses. This is the same game plan that it has used for years and the one that has allowed it to become a Dividend King. Slow and steady growth is likely to continue for years. Steel Dynamics also has a growth plan, but it's a bit more aggressive. First, it is, like Nucor, investing in new facilities and expanding its reach into higher-margin steel parts businesses. But on top of that, it is also expanding its business into the aluminum sector. So far, Steel Dynamics' more growth-oriented model has worked out well for investors, noting the 10-year annualized dividend growth rate of over 10%. Assuming Steel Dynamics is as successful in aluminum as it has been in steel, this could be a very attractive growth stock. There's just an additional layer of execution risk involved in the approach compared to Nucor. The steel industry is out of favor right now thanks to economic uncertainty and geopolitical issues, notably including tariffs. That could be a buying opportunity for long-term investors. But make sure you buy the best companies if you do decide to step into the steel sector. In North America, that basically means Nucor and Steel Dynamics, both of which are likely to be worth more than US Steel in five years, if that company still exists at all. Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than United States Steel 5 Years From Now was originally published by The Motley Fool
CNA
20-05-2025
- Business
- CNA
Global steel sector lagging on green transition as coal-powered production rises, research shows
SINGAPORE: As much as 303 million metric tons per year of new high-emitting blast furnace capacity is under development, especially in major steel producers India and China, new research showed, suggesting it will still make up the vast majority of production by 2030. Steel production is responsible for about 11 per cent of total climate warming greenhouse gas emissions, with global steel demand set to exceed 2 billion tons by 2030, the US-based Global Energy Monitor think tank said. While cleaner electric arc furnace technology is expected to rise 24 per cent by then, blast furnace capacity is set to rise 7 per cent and account for 64 per cent of total global output, GEM said. The think tank warned that the steps taken by India, which accounts for 57 per cent of all new coal-based blast furnace capacity under development, will be pivotal in "greening one of the world's most polluting industries". "India is now the bellwether of global steel decarbonisation," Astrid Grigsby-Schulte, one of the report's authors, said in a statement. The actions of its steel industry will determine how close the sector gets to the International Energy Agency's target of switching 38 per cent of furnaces to electric arc by 2030. China, the world's biggest steel producer, built around 21 million tons of new blast furnace capacity last year, while India added another 10 million tons, GEM data showed.
Reuters
20-05-2025
- Business
- Reuters
Global steel sector lagging on green transition as coal-powered production rises, research shows
SINGAPORE, May 20 (Reuters) - As much as 303 million metric tons per year of new high-emitting blast furnace capacity is under development, especially in major steel producers India and China, new research showed, suggesting it will still make up the vast majority of production by 2030. Steel production is responsible for about 11% of total climate warming greenhouse gas emissions, with global steel demand set to exceed 2 billion tons by 2030, the U.S.-based Global Energy Monitor think tank said. While cleaner electric arc furnace technology is expected to rise 24% by then, blast furnace capacity is set to rise 7% and account for 64% of total global output, GEM said. The think tank warned that the steps taken by India, which accounts for 57% of all new coal-based blast furnace capacity under development, will be pivotal in "greening one of the world's most polluting industries". "India is now the bellwether of global steel decarbonisation," Astrid Grigsby-Schulte, one of the report's authors, said in a statement. The actions of its steel industry will determine how close the sector gets to the International Energy Agency's target of switching 38% of furnaces to electric arc by 2030. China, the world's biggest steel producer, built around 21 million tons of new blast furnace capacity last year, while India added another 10 million tons, GEM data showed.
Yahoo
20-05-2025
- Business
- Yahoo
Global steel sector lagging on green transition as coal-powered production rises, research shows
SINGAPORE (Reuters) -As much as 303 million metric tons per year of new high-emitting blast furnace capacity is under development, especially in major steel producers India and China, new research showed, suggesting it will still make up the vast majority of production by 2030. Steel production is responsible for about 11% of total climate warming greenhouse gas emissions, with global steel demand set to exceed 2 billion tons by 2030, the U.S.-based Global Energy Monitor think tank said. While cleaner electric arc furnace technology is expected to rise 24% by then, blast furnace capacity is set to rise 7% and account for 64% of total global output, GEM said. The think tank warned that the steps taken by India, which accounts for 57% of all new coal-based blast furnace capacity under development, will be pivotal in "greening one of the world's most polluting industries". "India is now the bellwether of global steel decarbonisation," Astrid Grigsby-Schulte, one of the report's authors, said in a statement. The actions of its steel industry will determine how close the sector gets to the International Energy Agency's target of switching 38% of furnaces to electric arc by 2030. China, the world's biggest steel producer, built around 21 million tons of new blast furnace capacity last year, while India added another 10 million tons, GEM data showed. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
