Global Webinar Report Back

FERRITIC STAINLESS STEEL’S ROLE IN UNLOCKING SUSTAINABLE GROWTH

Worldstainless regularly convenes its members to deliberate crucial aspects of stainless steel’s correct and sustainable utilisation. Sub-committees, including Sustainability, Market Development, and Safety, facilitate in-depth discussions. The recent second-semester meeting conducted online from Brussels in October 2023, featured a presentation from Sassda and focused on insights on stainless steel sustainability in Southern Africa…

Setting the Stage: Sassda’s Vision for Sustainable Growth

Speaking at the recent Worldstainless webinar Sassda Executive Director Michel Basson elaborated that Sassda serves as a crucial platform for its members, collectively dedicated to promoting sustainable growth and development within the industry. The primary focus is on the conversion of stainless steel within the South African economy. Sassda’s strategic approach revolves around creating local demand through localisation, subsequently evolving these products and capacities into export-worthy commodities. However, the emphasis is on meaningful localisation, ensuring competitiveness in terms of both price and quality on a global scale.

The stainless steel market in South Africa finds its major consumers in the automotive, agri-processing, food and beverage, architectural, and general engineering sectors. Initiatives to localise production, such as beer kegs, hollowware, and catering industry products, are gaining momentum. Yet, the challenge lies in not only sustaining these efforts but also ensuring the tonnage produced can replace lost markets and drive substantial local consumption.

Challenges and Opportunities

A visual representation of the stainless steel market in South Africa, displayed since 2018, revealed a disconcerting trend of production decline since 2015. This decline was attributed to various challenges, including the decrease in exports to Europe, European Union Carbon Border Adjustment Mechanism (EU CBAM) regulations, lacklustre economic growth, consistent electricity supply issues, and a deficiency in domestic market share.

However, Sassda, under the gambit of the Steel Master Plan (SMP), sees a roadmap to navigate these challenges. The SMP, driven primarily by the private sector and facilitated by the Department of Trade, Industry, and Competition (the dtic), comprises two principal legs – creating local demand and progressing towards an export market. Sassda’s mandate places a pivotal focus on local demand creation, emphasising its potential to yield more tonnage than mere localisation efforts.

The Role of Utility Ferritic Stainless Steel

Within the SMP, Sassda has identified two projects with the potential to significantly impact local demand and export capacity. The Eskom transmission towers and rural steel bridges, requiring structural profiles, present an opportunity to develop rolling capacity in South Africa.

The incorporation of stainless steel in material specifications for corrosive areas immediately addresses local demand in mining and infrastructure industries. Additionally, the regional availability of stainless steel structural elements holds promise for applications in corrosive mining environments and coastal infrastructure development, including gas exploration and production in Namibia and Mozambique.

With private enterprises investing in large-scale renewable electricity generation and Eskom unlikely to return to its former energy generation capacity, utility stainless steels are cost-effective alternatives for coastal and other corrosive installations. Another opportunity has arisen from the growing impact of extreme weather conditions on existing infrastructure, prompting the government to endorse the Bailey Bridge concept for cost-effective repairs in corrosive areas. While these projects may not lead to sustainable consumption increases, they act as enablers for developing capacity for future infrastructure in Southern and East Africa.

The 3CR12 Advantage: A Testimony to Endurance

Originating from Columbus Stainless in the late 1970s, 3CR12, a low-cost, corrosion-resistant stainless steel initially designed for the mining industry, is now found in structural applications in the mining, water handling, rail transport, sugar, pulp and paper industries, and general industry. The Marion Island weather base, built on a 3CR12 grating platform, stands as an early testament to the material’s enduring qualities, with minimal impact on the ecologically sensitive environment.

While the current high cost and scarcity of welded profiles limit the general use of 3CR12 in structural applications, examples such as the Gateway Bridge in KZN showcase its effectiveness. Unlike galvanised pedestrian walkways requiring maintenance every 5 to 7 years, the painted 3CR12 structure resists filiform corrosion, remaining untouched after years of service.

Debunking the Stainless Steel Cost Myth

Addressing the perception that stainless steel is an expensive option, Sassda underscored the long-term cost efficiency of the material. Despite the high initial acquisition costs, these costs are offset by minimal maintenance and replacement expenses throughout the project lifespan. Comparatively, the initial costs of 3CR12 align closely with galvanised carbon steel, and the material’s 96% recyclability further enhances its total life cycle cost efficiency.

A Call for Sustainability: Environmental Stewardship

Despite the high carbon footprint associated with stainless steel production globally, It has a minimal environmental impact during installation and its unparalleled post-lifespan recyclability rate. This point was emphasised by a case study at a hydrometallurgical plant in Chile. Material selection for a walkway across corrosive areas in the plant considered three options: Mild steel (the cheapest option), requiring coating maintenance every four years; 3CR12 (unpainted), requiring cleaning every 15 years with high-pressure water; and Lean Duplex (an expensive material with exceptional mechanical and corrosion characteristics) requiring cleaning every 15 years with high-pressure water.

In addition to highlighting the sustainability of life cycle costing, the message resonates that while stainless steel production in South Africa contributes to a high carbon footprint, its physical installation has minimal environmental impact. The material’s post-lifespan recyclability rate stands unbeatable among other materials, making stainless steel a wise, cost-effective, environmentally friendly, and sustainable choice.

As Sassda advocated for utility ferritic stainless steel, the hope was for political will and a shared vision in the initial market space to drive these wise choices forward.

In the intricate dance between economic growth, industry development, and environmental responsibility, utility ferritic stainless steel emerges as a key player, unlocking opportunities for the South African stainless steel industry’s sustainable future.