The Brussels-based World Steel Association (Worldsteel) says steel output in nations that report to it was down 3 percent this August compared with August 2021. In Paris, the vice-chair of the Organization for Economic Co-operation and Development (OECD) Steel Committee has released a statement referring to the sector as experiencing a “sharp downturn.”

Worldsteel says crude steel production this August in the more than 60 countries reporting to it was 150.6 million metric tons, representing a 3 percent decrease compared with August 2021.

Among the largest steel producing nations, China actually produced 0.5 percent more steel this August compared with its August 2021 figure. India, likewise, witnessed a 1.2 percent rise in production.

Much of the rest of the world, however, experienced a low-output August this year, with United States mills making 7.1 percent less steel and mills in Turkey (the largest importer of ferrous scrap globally) off a whopping 21 percent year-on-year in August.

In Europe, Germany’s sector was off 2.3 percent year-on-year in August while Worldsteel estimates Russia’s output dropped 5.5 percent.

Year-to-date, India could be considered the only major steel producing nation with increased output in 2022. Iran—thanks to a reported 64 percent rise in August 2022 output compared with August 2021—also now has experienced a year-to-date gain.

The decline in OECD nation output has caused Sheryl Groeneweg of that body’s Steel Committee to write in mid-September, to write about “concerns about the sharp downturn in world steel markets [that have been] exacerbated by rising energy prices but also a range of inflationary factors.”

Groeneweg writes in the Steel Committee statement, “Global steel consumption has contracted significantly in the first half of this year due to the rapidly deteriorating economic environment. Steel producers’ profitability is coming under considerable strain along with sharply declining steel prices and surging energy costs.”

In the U.S., steel producers remain profitable, although several have warned of narrower profits in their financial quarters covering the third quarter of this calendar year.

While much is written about a move toward sustainable, low-carbon steel, the global market is not necessarily supporting that notion, Groeneweg implies. “Much of the world’s capacity growth in recent years has been concentrated in the Middle East, South Asia and Southeast Asia. Many of the new installations in Asia have been focused on the coal-intensive steel production process.”

With that steel putting a low ceiling on the global price, the committee cited pressures on the OECD’s ability to chart a low-carbon course. “In this context, delegates noted that efforts should be made to ensure that policy support to encourage low-carbon steelmaking does not lead to net capacity increases that would exacerbate global excess capacity and contribute to trade frictions,” Groeneweg writes.

She adds, “The Committee agreed that the decarbonization of the steel sector is one of the priorities in its next program of work, and that it aims to operate as a platform to encourage the sector’s green transition under conditions of fair and non-distortive competition.”

In Europe, the scrap sector has expressed alarm about trade restrictions looming for scrap metal exports, and the OECD has in noticed. “Protectionist tendencies are emerging in some economies in the area of steelmaking raw materials. Delegates took note of export restrictions on scrap as a trade challenge for the steel sector. To address these challenges, the Committee had in-depth discussions with representatives from the mining and raw material sectors with a view to raising awareness about alternative sources of raw material supplies for their steel industries, with an emphasis on sustainable raw materials.”

For John Sacco, president and co-owner of Bakersfield, California-based Sierra International Machinery, and Ricardo Diaz, lead technician at Sierra, maintaining shears, balers and loggers is exactly like maintaining a Ferrari.

During Scrap Expo, which took place Sept. 13-14 in Louisville, Kentucky, Sacco and Diaz discussed how operators should maintain balers, loggers, shears and two-ram balers and why it's vital to operations in sessions titled Logger/Baler and Shear/Baler/Logger Maintenance and Two-Ram Baler Maintenance.

“The price of a Ferrari is the same price as [shears], two-ram balers and conveyors,” Sacco said during the session. “If you won’t keep your Ferrari [in poor condition], why would you keep a piece of equipment you’re going to spend more money on like that?”

Diaz said that the cost of repairs varies depending on the size of the repair and the time it takes to ship parts. It could range between $500 and $80,000, and a broken logger/baler or shear/baler/logger could cause up to three weeks of downtime.

To ensure these machines stay in shape, Sacco and Diaz advised performing basic preventive maintenance on them daily, weekly, monthly and annually. Some basic preventive maintenance tasks that operators need to have on their checklists include:

• checking engine oil levels;
• checking the machine’s hydraulic oil levels;
• checking for leaks;
• monitoring grease usage;
• testing hydraulic fluid and cleaning hydraulic reservoirs;
• checking structural welds for cracks; and
• checking clamps, jack pins and the engine’s coolant.

Ensuring basic preventive maintenance tasks are preformed is the responsibility of a scrap yard’s management team, Sacco said.

In addition, Diaz suggested that operators inspect these balers, loggers and shears while they are running to get a full view of how they move. He said to look at areas including circuit boxes, doors and pumps. He stressed that even if a smaller part on these machines break, that small break can snowball into something worse if left unchecked.

Preventive maintenance also means being prepared to replace something if it breaks. Sacco said that operators should have at least one replacement part for parts of machines that see the most wear. For shear blades, he advised having two replacements on hand because the time it takes to ship shear blades has increased since the start of the pandemic.

Proper employee training and testing could also be the difference between clean and damaged equipment. Sacco said companies should perform drug tests on their equipment operators, stressing that they should never allow someone under the influence to operate machinery to ensure the safety of both the employees and the equipment.

Equipment storage and the layout of the scrap yard also play an important role in equipment longevity. Sacco and Diaz said balers, loggers and shears should never be parked next to scrap piles or drums since that would pose a fire risk.

Additionally, Sacco and Diaz said the environment a machine is stored in determines how it should be maintained. For example, they said machines on concrete surfaces may not get dirty as quickly as those that are placed on the ground.

Diaz said operators also should check gauges that come with their machines. He advised against operators removing these gauges from the machines since those are helpful for making diagnostic tests.

Sacco and Diaz added that operators need to be willing to invest in their equipment, noting that it’s better to spend a little bit of money on their equipment now rather than a lot of money on repairs later.