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Scrap Management &
OptimizationSolutions
ScrapMaster is a trademark of Harsco Corporation. All rights reserved.
BOSS is a trademark of Management Science Associates, Inc. All rights reserved.This presentation is intended for customers of Harsco Corporation. All information included in this presentation, including copyright and trademarks, is expressly reserved
and no part of these materials may be reproduced or distributed outside of the customers organization in any form without Harscos prior written consent.
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Ethical in Thought, Word and Deed
Disciplined Thought, DisciplinedAction and Disciplined People
Transparency
Safety
Personal Accountability and
Responsibility
Customers
Targeted Market
BHAG
Envisioned Future
Value Creation
Value Capture
Value Selling
Be the Best
SustainableSuperior
Performance(20-Mile March)
Customers
Employees
Shareholders
Suppliers
Uncompromising Integrity andEthical Business Practices
Harsco Integrity Framework: Code of Conduct
Safety Practices
Internal Control
To build teams that win with integrityanywhere in the world
Harsco's Core Ideology
Core Values
People the "A Team" Human Capital Framework:
Global Talent Management System for Recruiting,
Developing, Retaining and Assessing Human Capital
Continuous Improvement Continuous Improvement
Discipline through Lean and SixSigma Methods
Business Transformation
Value Creation Discipline Economic Value Added (EVA)
Value Selling Culture
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2 4
Security Practices
Global Management Practices
Core Purpose
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Scrap consumption in Steelmaking
Global Steel production in 2009 totalled1.2 billion tonnes, using approx 600million tonnes of scrap
The value of that scrap amounts toapprox $140 billion*
As the worlds largest steel producerChina consumes more scrap insteelmaking than any other country
550 million tonnes LST in 2009
170 million tonnes scrapconsumption in 2009
*Based upon 2009 average scrap price of $230 per tonne
0 50 100 150 200 250 300 350 400 450 500
Oceania
S. Am
CIS
M.E. Africa
India
China
Rest of Asia
N. Am
Europe
Steel Production (million tonnes)
EAF
BOS
0
20
40
60
80
100
120
140
160
China Europe Rest of
Asia
N. Am India CIS S. Am M.E. Africa Oceania
ScrapUsed(m
illiontonne
EAF
BOS
Steelmaking Scrap Consumption 2009
Crude Steel Production 2009
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Scrap is the most significant raw material cost
70% of steelmaking costs areraw materials
Scrap makes up a largeproportion of this
$374 million/year 1 million tonne EAF plant
Estimated Scrap input cost
$204 million/year 3 million tonne BOS plant
*Based upon average scrap price of $340 per tonne
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Best Practice scrap management
Best-in-Class scrap management
allows the Steelmaker to:
Downgrade/reject merchant
scrap loads
Reduce scrap yard landfill
costs
Minimise scrap stocks
Optimize scrap charges
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Through Processes Impact
Consequences of poor scrap management:
=> EAF delays waiting for scrap
=> Incorrect weights charged
=> Low yields
=> Increased slag volumes
=> Missed specifications
=> Increased refractory wear
=> Greater flux, O2, power consumption
Financial impact:
1 minutes lost production time approx $3000 10oC Cooling requirement approx $440 per heat
+100 ppm [O] at tap approx $51 per heat
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Harsco Metals Scrap Management Solutions
Optimum scrap mix is charged each and every time on time the correct weight, the correct quality, zero delays
Full inspection, including state of the art radiation detection for all purchased scrap
Proactive reporting of scrap deliveries to enable cash recovery associated with OOS loads, rejected loads and
contaminated loads
Real time IT control for internal and purchased scrap with full stock tracking and reporting system
Full traceability and accountability of scrap throughout site so that potential for fraud can be eliminated
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ScrapMaster
Four integrated operating modules for cost-effective management of the entire scrap supply chain,with full segregation and traceability.
ScrapMaster
Management information reporting puts you in control
Optimizing
Scrap handling
Basket Loading
Incomingscrap
Powered by
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ScrapMaster Value
ScrapMaster can unlock significant savings
Save on external scrap purchasing
Realise the maximum value of internal scrap
Charge the optimum scrap mix on time, every time
Monitor the entire scrap charge history
The unique video review function in ScrapMasterallows the furnace manager to monitor exactly whatscrap was loaded at what time, in case of anyproblem with a particular heat.
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Scrap Optimization
ScrapMaster now integrates BOSS (Blending OptimizationSoftware Suite) functionality
Under license from Management Science Associates, Inc.
World leading optimization program
Yield-based cost calculation
Actual scrap cost per tonne of steel
Value of the scrap inventory on a real-time basis
Minimises scrap charge cost, grade by grade Based on specific grade production data entered by the
steelmaker
planned tonnage, scrap composition, prices, availabilityand inventory
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BOSS References
Essar Steel Algoma Canada Integrated
ArcelorMittal PST USA EAF
AK Steel USA Stainless Steel
ATI USA Stainless Steel
Carpenter Technology USA EAF
Universal Stainless USA Stainless Steel
MetalTek International USA Special Steels
McConway Torley USA Special products
Sparrows Point Scrap Processing USA Integrated
The Federal Metal Co USA Special products
Waukesha Foundry USA Special products
WCI Steel USA Integrated
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BOSS Functions
Single heat optimization
Multi heat optimization
Campaign optimization
Scrap buy planning
Inventory management Results feedback and interpretation
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Optimization Process Flow
Element Recovery
Restrictions
STAGE 1Input Scrap Grade Data
STAGE 2Input Steel Grade Data
STAGE 3Optimized Charge Design
Restrictions
Chemical Analysis
Steel Grade Name
Scrap Grade NameScrap Grade Name
Scrap Type
Chemical Analysis
Physical Properties
Yield
Cost Information
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Scrap Input Data
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Steel Grade Data
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Inventory Data
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Optimized Charge Solution
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Solution Information
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Scrap Buying Plan
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Factors for Optimization Accuracy
Input scrap analysis is critical
Regular melt tests and spectrographic analysisof scrap required to build database
Update model as more and more information isgathered
Furnace characteristics to be established Full partnership approach needed so that details
of furnace characteristics and production planare shared
Factors for Optimized Operations
Accurate recording of scrap charge weight
Use ScrapMaster system to ensure scrap chargeweights are recorded heat by heat
Exact Knowledge of scrap being charged
Use ScrapMaster DGPS system to ensure fulltracking of scrap charge
Clear demonstration of optimization impact
Compare actual scrap charge recipe, weight andcost heat by heat and day by day with optimized
solution
Successful Optimizing
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Scrap Analysis
Accurate chemical analysis data is required for scrap materials
Need to begin population of scrap database
To start process, need melt tests of each scrap
Ongoing testing of scrap will be required to populate database with a large number of samples to improve modelaccuracy
Spectrographic AnalysisOf Scrap
Melt Test of Scrap
Update scrap analysisdatabase
Load datainto optimization model
Incoming scrap type
Repeat analysis regularly to build database
and improve model accuracy
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ConfirmResults
3Update Scrap
Analysis
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MeltingEAF
5
Results(history)
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AnalysisScrap vs Steel
(residuals)
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FeedbackData
1
ReceiveScrap 2
AnalyseChemical
Data
Continuous Feedback
Process Improvement
Optimization Improvement
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Optimized Savings Example
Analysis of existing scrapcharge practice is made andthen compared with optimizedsolution
Total cost of both areestablished and savingscalculated
Grade Name# ofhts
%Savings per
month
1424 Plate HIC 66 2.09%
1674 Plate Linepipe 27 0.86%
1988 Plate LowAlloy 126 3.99%
1412 Plate MicroAlloy 82 2.60%
1981 Plate MildSteel 623 19.75%
1608 Section LowAlloy 22 0.70%
1639 Section MicroAlloy 760 24.10% 77,210
1655 Section Mild Steel 120 3.80% 34,867
1962 Strip HIC 96 3.04%
1451 Strip High Carbon 188 5.96%
40 Strip IF 458 14.52%
1932 Strip Linepipe 35 1.11%
1437 Strip Low C 277 8.78% 32,863
1915 Strip Low S Ca 35 1.11%
1449 Strip Med C 239 7.58% 27,755
3,154 100.00% 172,695
Grade Name# ofhts
%Savings per
month
1424 Plate HIC 66 2.09%
1674 Plate Linepipe 27 0.86%
1988 Plate LowAlloy 126 3.99%
1412 Plate MicroAlloy 82 2.60%
1981 Plate MildSteel 623 19.75%
1608 Section LowAlloy 22 0.70%
1639 Section MicroAlloy 760 24.10% 77,210
1655 Section Mild Steel 120 3.80% 34,867
1962 Strip HIC 96 3.04%
1451 Strip High Carbon 188 5.96%
40 Strip IF 458 14.52%
1932 Strip Linepipe 35 1.11%
1437 Strip Low C 277 8.78% 32,863
1915 Strip Low S Ca 35 1.11%
1449 Strip Med C 239 7.58% 27,755
3,154 100.00% 172,695
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The Value of Charge Optimization
Quantifying the cost of production constraints (e.g.sulfur composition of the heat)
Lowest cost liquid steelmaking
Optimized use of scrap available
Use data for informed scrap purchasing andnegotiation
Planned scrap buy
Full control of scrap cost
Tangible savings
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End-to-End Scrap Management Solution
Full management of scrap from the moment it arrives on site until it ismelted
Handling of scrap arriving by road, rail and barge
Order receipt, radioactivity control, scrap quality control Processing of scrap on site
Collection, transport and upgrading of all internally arising scrap
Reception, storage and real time scrap inventory control
Scrap charge optimization
Loading scrap baskets according to menus received electronicallyfrom the production schedule
Transport scrap to the furnace on specialist vehicles