Products
Ruukki Group is active in the following product markets, each of which is global in nature:
(i) Chrome ore and concentrate
Three forms of chrome ore can be distinguished by their different physical characteristics, which affect the blast furnace productivity: fines (fine ore), lump (lumpy ore) and chromite concentrate.
Fines are ore with the majority of individual particles typically measuring less than 4.75 millimetres in diameter. Lumps are ore with the majority of particles measuring more than 4.75 millimetres in diameter. Fine and lumpy ore are produced from the same ore and are separated by screening and sorting. Although fines and lump ores cost about the same to produce, fines fetch lower prices than lump because they must be sintered by the steel mill before they can be charged to the blast furnace.
Chromite concentrate is a further processed product which is finer in composition than lumpy ore, and is black in colour. It contains a higher percentage of chrome compared to lumpy ore or fine ore. Chromite concentrate may be in the form of a slurry, mud cakes or pellets. Chromite pellets begin as a fine-grained concentrate to which a binder, often clay, is added. This is then rolled into balls which pass through a furnace where they harden and become pellets usually measuring from 9.55 to 16.0 millimetres.
In 2008, Ruukki’s Turkish subsidiary Türk Maadin Sirketi (TMS) produced a total of approximately 35,000t of lumpy ore (42% chrome content) and chromite concentrate (53% chrome content). Approximately 65% of the production was chromite concentrate and 35% lumpy ore. TMS's share of global chrome ore production is less than 1%.
(ii) Ferrochrome
Ferrochrome is categorised according to its carbon content, which determines the most appropriate end use. High carbon (HC) ferrochrome and charge chrome account for over 90% of the global ferrochrome output. HC ferrochrome contains 58-72% chrome, 7.5-8.5% carbon and 0.5-1.5% silica. Charge chrome contains 48-58% chrome, 4.0-7.5% carbon and 2.0-3.0% silica. HC ferrochrome and charge chrome are used in the production of stainless steel. Charge chrome is also used as an additive in the steel industry. Medium carbon (MC) ferrochrome contains around 56% chrome and less than 5% carbon, whilst low carbon (LC) and ultralow carbon (ULC) ferrochrome contain more than 56% chrome and less than 0.1% carbon. LC and ULC ferrochrome are used by specialist stainless steel manufacturers, e.g. in the aviation and nuclear power industries.
Ruukki’s South African subsidiary, Mogale Alloys, produced approximately 20,000t of HC and charge ferrochrome in 2008. Mogale's worldwide market share is of less than 1%. Ruukki’s German subsidiary, Elektrowerk Weisweiler, produced approximately 27,000t of LC and ULC ferrochrome in 2008.
(iii) Silico manganese
Silicomanganese, a ferroalloy with high contents of manganese and silicon, is used in the production of steel and stainless steel. Mogale produced approximately 44,000t of silicomanganese in 2008.
(iv) Chromium-iron-nickel alloy
Chromium-iron-nickel alloy is used in the production of steel and stainless steel. Mogale produced approximately 18,000t of chromium-iron-nickel alloy in 2008.
The Mogale output figures above are based on production levels from 2008, and are a reflection of the market demand for each product during this period. Mogale frequently changes its product mix and production levels to match the demand for each product and maximise profitability.