INTERNATIONAL TAR ASSOCIATION 2017 ANNUAL CONFERENCE PRAGUE, SEPTEMBER 25 26, 2017

Transcription

1 INTERNATIONAL TAR ASSOCIATION 2017 ANNUAL CONFERENCE PRAGUE, SEPTEMBER 25 26, 2017 CENTRAL EUROPEAN, UKRAINIAN, AND RUSSIAN COKE PRODUCTION, COAL TAR PRODUCTION AND DISTILLATION: HISTORICAL REVIEW AND FORECAST DR. ZYGMUNT STOMPEL, POLAND

2 DISCLAIMER: This presentation covers cokemaking and coal tar processing industries in the member states of the former Council of Mutual Economic Cooperation COMECON, i.e. Russia and Ukraine of the former Soviet Union, Bulgaria, Czech Republic and Slovakia (former Czechoslovakia), Hungary, Poland, and Romania and Bosnia Herzegovina of the former Yugoslavia, which were not members of the COMECON. Note: COMECON active from January 1949 till June 1991.

3 I CENTRAL AND EASTERN EUROPE PRODUCTION OF COKE

4 HISTORICAL COKE PRODUCTION IN CENTRAL & EASTERN EUROPE: , kt Country Remarks Bulgaria Bosnia Czech Rep Hungary Poland Romania Slovakia Sub-total Russia Ukraine Cremikovtse steelworks shut down in 2008 Lukavac and Zeniza works restarted in 2004 Galati steelworks coking plant shut down in 2009 Including Ural and Siberian plants Military conflict in Eastern Ukraine started April 2014

5 CENTRAL EUROPEAN COKEMAKING INDUSTRY : A CLOSER LOOK Country Company Location 17 Capacity 17 Prod. 20 Prod. Remarks Bosnia Arc.Mittal Zenica ? Lack of environm. permit Ispat Lucavac ? Debts, workforce problem Czech Rep Arc.Mittal Ostrava OKK Svoboda Ostrava ? 600 Future of OKD? Trinecke Zel Trinec Fresh after rebuilding Hungary ISD Koksolo Dunaujvaros Fresh after rebuilding Poland Arc.Mittal Zdzieszowice Arc.Mittal Kraków JSW Koks Dąbrowa G Rebuilding planned JSW Koks Zabrze Debieńsko shut-down 18 Zarmen Częstochowa Ongoing expansion Victoria Wałbrzych Ongoing expansion Carbo-Koks Bytom End of operational permit Slovakia US Steel Kosice No repairs planned Total

6 CENTRAL EUROPEAN COKEMAKING INDUSTRY 2020 A SUMMARY Except Bosnia, all Central European cokemaking countries (Czech Republic, Slovakia, Hungary, and Poland) are members of European Union. Newest EU environmental protection regulations about to be implemented will make building a coking plant from the ground almost impossible. Expect some rebuilding programs only. Therefore, coke production forecast for 2020 and beyond is no more than figure. Poland will remain the biggest producer of coke in the European Union. Expect gradual rebuilding of JSW Koks Przyjaźń (Dąbrowa Górnicza) batteries. US Steel thinks about selling Kosice stelworks but its coking plant will remain operational. Dunaujvaros looks stable.

7 RUSSIAN COKEMAKING INDUSTRY A CLOSER LOOK Company Location 17 Capacity 17 Prod. 20 Prod. Remarks Severstal Cherepovets, Europe Rebuilding planned NLMK Lipetsk, Europe Continuation Mechel - Moscow Vidnoe (Moscow) ? For sale since 2014 Gubakha Coke Gubakha, Ural ? Future uncertain MMK Magnitogorsk, Ural Continuation Mechel Koks Chelyabinks, Ural Repairs in progres Evraz - NTMK Nizhniy Tagil, Ural Repairs in progres Ural Steel Novotroitsk, Ural Altay Koks Zarinsk, Siberia Rebuilding planned IMH - Koks Kemerovo, Siberia Evraz - Zapsib Novokuznetsk, Siberia Total Russia

8 RUSSIAN COKEMAKING INDUSTRY 2020 A SUMMARY After a couple of years of decreasing production and suspension of investment, a sort of stabilization in Russian cokemaking industry is observed, with mild signals of reversing the trend. We can t exclude elimination of some minor producers, but big players (Magnitogorsk, Cherepovets, Kemerovo, Novo- Lipetsk, Altay Koks) will survive and even improve. The biggest asset of the Russian cokemaking industry is an abbundance of good quality and cheap (open-cast mines) coking coal.

9 UKRAINIAN COKEMAKING INDUSTRY A CLOSER LOOK Company Location 17 Capacity 17 Prod. 20 Prod. Remarks ISD Alchevsk ? Lugansk District Metinvest Avdeyevka ? Donetsk District Metinvest Mariupol ? Donetsk District Metinvest Yenakiyevo ? Donetsk District Donetskkoks Donetsk ? Donetsk District Donetsk Steel Makeevka ? Donetsk District Donetsk Steel Yasinovka ? Donetsk District Istek Gorlovka ? Donetsk District Evraz Dniprokoks Dnipropetrovsk Dnipropetrovsk D. Evraz Yuzhkoks Dniprodzerzhinsk Dnipropetrovsk D. Metinvest Zaporozhya Zaporozhya D. Metinvest Dniprodzerzhinsk Dnipropetrovsk D. ArcelorMittal Kryvyy Rih Dnipropetrovsk D. Kharkiv Coke Kharkiv ? Kharkiv District Total Ukraine ?

10 UKRAINE

11 UKRAINIAN COKEMAKING INDUSTRY 2020 A SUMMARY 68 % of Ukrainian installed cokemaking capacity is within Donetsk and Luhansk districts, i.e. those affected by fightings. Those plants are operational, and will remain as that (most probably), but nobody knows to what extend. At the moment (June July 2017) three Metinvest coking plants in Donetsk District (Avdiivka, Yenakievo, and Mariupol) works at the full available capacity, with some repairs in progress. The biggest problem however arises from broken supplying lines. Cokemaking plants in Central Ukraine (Zaporozhya and Dnipropetrovsk districts) are returning gradually to full operational capacity. Expansion at ArcelorMittal Kryvyy Rih.

12 II CENTRAL AND EASTERN EUROPE PRODUCTION OF COAL TAR

13 HISTORICAL PRODUCTION OF COAL TAR IN CENTRAL AND EASTERN EUROPE, , kt

14 CURRENT AND FORECASTED PRODUCTION OF COAL TAR IN CENTRAL AND EASTERN EUROPE, , kt Country Coal tar 2017 Coal tar 2020 Remarks Bosnia (?) Czech Republic (?) Hungary Poland Slovakia Uncertain future of Ispat s coking plant at Lucavac Total shut-down of OKD coal mines by 2020: to what effect? Shut-down of the smallest plants, intensification elsewhere Total Central Europe Russia Ukraine Central & Eastern Europe Assuming gradual recovery and no more damages

15 III COAL TAR PROCESSING INDUSTRY IN CENTRAL AND EASTERN EUROPE

16 CENTRAL EUROPEAN COAL TAR PROCESSING INDUSTRY : FALL AND DECLINE Country Plant, location Capacity, kt/y Final shut-down Bulgaria Kremikovtsi (Sofia) Hungary Dunaferr (Dunaujvaros) Poland Blachownia (Kędzierzyn) Zabrze (Zabrze) Sendzimir (Kraków) Chrobry (Wałbrzych) Hajduki (Chorzów) Romania Galati Slovakia VSZ (Kosice)

17 CENTRAL EUROPEAN COAL TAR PROCESSING INDUSTRY : REASONS FOR THE FALL Very old plants (some of them built well before WW II), the newest from the 50 of XX Century Outdated technology, low energy efficiency Outdated products: soft pitch used as a road tar or as a feedstock for pitch coke (Zabrze, Kosice) Lack of environmental control Lack of workforce health protection Decreasing availability of feedstock tar Concentration on local (limited) market Lack of financial support for necessary modernization

18 CENTRAL EUROPEAN COAL TAR PROCESSING INDUSTRY 2017 AND BEYOND: THE LAST MAN STANDING DEZA a.s. (Dehtovy Zavody), Valasske Mezirici, Czech Rep. HISTORY: : Julius Ruetgers establishes a tar processing company in Ostrava; : the company nationalized; : changes name for Urx; s: gradual relocation from Ostrava to the new site in Valasske Mezirici, known as Urxovy Zavody; : changes name as Deza; : incorporated into the Agrofert Group, one of the biggest corporations in Czech Republic.

19 CENTRAL EUROPEAN COAL TAR PROCESSING INDUSTRY DEZA a.s., LOCATION

20 CENTRAL EUROPEAN COAL TAR PROCESSING INDUSTRY DEZA a.s. Installed tar distillation capacity: 460 kt/y (in one unit). Average capacity utilization rate: %. Extended downstream processing of tar fractions: in-house crude benzene distillation/rafination, separation of phenol and its homologs, naphthalene distillation/rafination, phthalic anhydride synthesis, anthracene separation and oxidation. Valmez: Cabot/Deza j-v carbon black plant next door. Liquid pitch storage park and loading facilities in the port of Świnoujście, Poland. Solid pitch storage and loading facilities in the port of Szczecin, Poland.

21 COAL TAR PROCESSING INDUSTRY IN RUSSIA 2017 AND BEYOND Company Location Capacity ktpy Processing 2017, kt Processing 2020, kt Severtar Cherepovets, Europe Novolipetsk Metallurgical Complex (NLMK) Magnitogorsk Metallurgical Complex (MMK) Lipetsk, Europe Magnitogorsk, Ural Mechel Chelyabinsk, Ural Evraz Nizhniy Tagil, Ural Evraz Novokuznetsk, Siberia Total Russia

22 RUSSIAN FEDERATION

23 COAL TAR PROCESSING INDUSTRY IN RUSSIA 2017 AND BEYOND - SUMMARY Focus on SEVERTAR: the newest (start-up February 2016), most modern vacuum tar distillation unit in Russia (and the world). 180 kt of in-site tar at Severstal, the remaining quantity got from other Russian cokemaking plants. Once Severtar has been put into operation, import of Chinese pitch to Russia has died out (H1 2015: 44.7 kt, H2 2015: 46.4 kt, H1 2016: 46.6 kt, H2 2016: 10.0 kt, H1 2017: 1.5 kt. Except Severtar, all other Russian electrode pitch manufacturers apply an air-blowing method for upgrading soft pitch; they may be eliminated in a couple of years for environmental and workplace protection reasons.

24 COAL TAR PROCESSING INDUSTRY IN UKRAINE 2017 AND BEYOND Company Location Capacity ktpy Processing 2017, kt Processing 2020, kt Metinvest Avdiivka, Donetsk D (?) Metinvest Yenakievo, Donetsk Metinvest Zaporozhya Metinvest Dniprodzerzhinsk Tar Alliance Gorlovka, Donetsk D ? Energo Makiivka, Donetsk D Total tar distillation INCOR & Co. (naphthalene plant) Toretsk, Donetsk D. (Metinvest) (?) 50 20?

25 COAL TAR PROCESSING INDUSTRY IN UKRAINE 2017 AND BEYOND - SUMMARY With Tar Alliance out of picture, Ukrainian tar processing industry (Avdiivka, Zaporozhya, and Dniprodzerzhinsk plants) is in the hands of Metinvest (SCM). Through INCOR & Co. (processing of carbolic and naphthalene oils) Metinvest controls also production of naphthalene and phenols. Despite a ceasfire, there are some occasional fightings in the Donetsk area, affecting Gorlovka. It is difficult to predict whethere Tar Alliance facilities return to activity. Until all Ukrainian tar processing plants return to normal operations, a big chunk of produced tar is exported (data for 2016): Czech Rep. 80 kt, Belgium 20 kt, Denmark 20 kt, Spain 14 kt).

26 THANK YOU VERY MUCH