April 2005

PowdermatriX takes a lead in developing new ways for PM

Efforts are being made to provide drive and direction for powder metallurgy in the UK, an industrial area that has been sadly underfunded in recent years...

The 4th Particulate Engineering Technology Fair in the UK is to be held this month (April 6) at Birmingham University. It is organised by the Particulate Engineering Committee of the Institute of Materials, Minerals and Mining in conjunction with PowdermatriX, the Faraday network on Powder Processing. The objective will be to bring together those involved in powder metallurgy, particulate engineering, and materials handling to review important developments and in particular to provide networking opportunities over an extended poster session and in specialist workshops. The programme includes health and safety aspects of articulates, Metalysis and the FFC process and powder handling.

Recent studies by PowdermatriX have identified critical issues essential for the growth of important materials sectors.

Developed through a robust series of consultation activities with PowdermatriX members and organisations in their supply chain, a series of four technology roadmaps identify the challenges and research priorities for the key sectors of; Advanced Ceramics, Hardmetals, Magnetics and Powder Metals.
The studies have demonstrated that there is a strong demand for co-ordinated actions that will help to grow the sectors. They show that this growth can be achieved through diversification into new products and markets or through improved manufacturing capability. Additionally, the sectors have common interests and would benefit from working together.

Stuart MacLachlan, of PowdermatriX commented: "The findings have already stimulated initiatives from PowdermatriX such as the Concerted Actions on Magnets and Manufacturing with Titanium Powder and we hope they will provide the focus for further initiatives in process and product innovation, and market analysis in relevant sectors."

As a result of the PowdermatriX initiative, the government has decided to put funding of £1 million into four projects, which is matched by financial and in-kind contributions from an active industrial advisory group of companies that also provides sample materials and facilities. A PowdermatriX Technology Translator is co-ordinating the activities of each project to ensure that the work programme is followed and to help the industrial partners exploit the results.

The four projects cover:
· Engineering the green state of powder products;
· Developing a paste formulation criterion;
· Fabrication of nanostructured ceramics for engineering applications; and
· A feasibility study of bonding of powder silicides for application to aero and land-based turbines.

Engineering the green state draws on the experience of seven research institutions to address problems with net-shape forming of powder compacts by die pressing. Expertise will be brought to bear from universities at Birmingham, Greenwich, Loughborough, Leicester, Aberdeen and Manchester as well as ceramics experts CERAM.

Dry powder processing is a key capability for all 20 participating companies. They will be provided with models and formulation protocols that should assist in bringing new, better and more profitable products to market in a shorter time with greater product consistency.

The paste formulation initiative is a collaboration between two research groups active in the topic of paste flow mechanics. The groups, based at Birmingham and Cambridge, have a particular interest in understanding paste manufacturing routes and the impact of formulation on paste behaviour.

The work represents a first, but important, step towards completely predictive formulation - something that can be applied across several industrial sectors. The results should aid formulators in reaching their objectives more effectively. Part of that will be increased understanding of failures in current formulations.

Fabrication of nanostructured ceramics actually deals with metals as well as ceramics. The work will develop process routes for nanostructured ceramic and metal/ceramic composite coatings, thick films and bulk materials for engineering applications.

The teams at Loughborough and Manchester working with a number of collaborating companies bring together expertise in nanopowder synthesis, suspension rheology, green forming, sintering and stress analysis.
The results will benefit companies currently manufacturing nanoparticles by chemical routes as well as end users of the powders from the automotive, aerospace, electrical, electronic and power generation industries.
A further benefit of this programme will be the understanding of the factors affecting the rheology of nanoparticulate ceramic suspensions, allowing them to be used as inks as well as the precursors for green body and coating production.

And finally, the feasibility of bonding silicides will assess a way of increasing the operating temperature of turbine engines by replacing nickel single crystal blades with niobium silicides with optimised high-temperature properties. The work, much of it carried out at the Universities of Birmingham and Surrey, aims to deliver a process route offering the possibility of cost-effective production of components.

Chrome takes off on stainless coat tails

Good current results could stimulate new investment in production capacity with the danger of oversupply and renewed downward drift...

The combination of strong demand, tight supply and sharp rises in the costs of freight, energy and chromite raw materials, meant ferro-chrome prices reached their highest levels for ten years in early 2005, at US¢72-74/lb, according to a new report from market analyst Roskill. This represents a significant recovery from the early 2002 when prices of US¢27-29lb were at their lowest level for 30 years and some 1.3Mtpy ferro-chrome capacity was idled.

The recovery in the ferro-chrome market has been primarily due to the growth in stainless steel production, which is forecast to maintain strong growth through the mid 2000s, led by Asian demand. Chinese output of stainless steel is estimated to rise from 1.8Mt in 2003 to at least 6Mt in 2008, with growth concentrated in the next two to three years.

However, recent high prices and expectations of continued growth in demand have encouraged plans for significant capacity expansion. Commissioning of all proposed capacity would result in the ferro-chrome market moving back into surplus, exerting downward pressure on prices.

The cyclical nature of the ferro-chrome market has resulted in a high degree of vertical integration between chromite mining and ferro-chrome production, and concentration of production among relatively few countries and producers. The increasing vertical integration has put severe pressure on non-integrated producers at times of low ferro-chrome prices. As a result, over the past six years ferro-chrome plants have closed down in Croatia, Italy, Norway, Poland, Romania, Slovenia, Spain and the USA.

With a combined output of 3.7Mt in 2003, South Africa and Kazakhstan accounted for nearly two-thirds of world ferro-chrome production, a rise from 42 per cent in 1994. The formation of a joint venture between Xstrata Alloys and SA Chrome in early 2004 created the world's largest ferro-chrome producer. The Xstrata-SA Chrome Venture, Samancor Chrome of South Africa, and Kazkhrom of Kazakhstan are the leading producers of chromite and ferro-chrome, accounting for nearly 55 per cent of world output of both products.

South Africa and Kazakhstan are also the countries with the greatest potential to increase production, thereby leading to further concentration of the chromite and ferro-chrome supply. The largest expansion planned by the Xstrata-SA Chrome Venture could potentially increase total ferro-chrome capacity to 2.55Mtpy by the end of 2010. In Kazakhstan, Kazkhrom plans to raise chromite pelletising capacity by 400,000tpy during 2005. In the long term, Kazkhrom may become forwardly integrated into stainless steel production, aimed at meeting Chinese and Russian demand.

Structural change in the South African ferro-chrome industry Structural change is underway in the South African industry, with Chinese and Indian companies taking or planning to acquire interests in South African operations. Traditionally swing suppliers of ferro-chrome on world markets during periods of high prices, China and India became net importers of ferro-chrome in the early 2000s and acquired interests in South African operations to secure raw materials.

There has also been a change of ownership of South Africa's second largest
producer. In February 2005, BHP Billiton and Anglo American reached an agreement for the sale of Samancor Chrome to Kermas Group of the UK for US$469M.

Outlook for chromium chemicals and chromium metal Market economy demand for chromium chemicals is estimated to have fallen by 3% in 2003, and a similar rate of decline seems likely to continue throughout the mid 2000s. Increasing concerns over environmental and health risks associated with hexavalent chromium have resulted in restrictions on the consumption of chromium chemicals in wood preservation, pigments, leather tanning and metal surface treatments.

In contrast, the outlook for the chromium metal market is for increasing growth over the next five years. Demand was severely depressed between 2001 and 2003 as the aerospace industry suffered its worst recession for 30 years and low levels of economic activity reduced demand for superalloys in industrial applications. The upturn in the aerospace and industrial turbine markets has been reflected in higher chromium metal demand since 2004. Consumption is estimated to have risen by 15 per cent in 2004, and could increase further.

Dividends - not all big bucks

PT International Nickel Indonesia has approved a dividend of $0.0975 per share consisting of a final dividend for 2004 in the amount of $0.0375 per share and an extraordinary dividend of $0.06 per share.

The decision to pay an extraordinary dividend of $0.06 per share was made in light of the company's strong performance and high nickel prices in 2004 and its current strong financial condition.

The total dividend of $0.0975 per share is payable on May 10, 2005 to shareholders of record as of April 25, 2005. Indonesian shareholders will be paid the Rupiah equivalent of the U.S. dollar amount, based on the Bank of Indonesia middle rate of exchange on April 25, 2005. Foreign shareholders will be paid in US dollars.

The Author

Harry Brown is a patent attorney with White, Redway & Brown LLP, 1217 King Street, Alexandria, Virginia, and can be reached by phone at +1 (703) 299-0953 and by e-mail at harry@wrb-ip.com. This paper represents the present views of the author and does not necessarily reflect the views of any clients of White, Redway & Brown LLP.