Transcript Coal tar pitch markets in Europe & North America

VFT Canada Inc.
Coal Tar Pitch Markets in
Europe & North America
Michael Sutton
VFT Canada Inc.
Presented at 12th Annual Met Coke World Summit
Chicago, Illinois
October 22-24, 2008
Agenda
VFT Canada Inc.
● North American Coal/Coke/Tar/Pitch Process
● North American Coke & Coal Tar Production
 Coke Plant Locations
 Tar Distilled
 Distillation Plant Locations
● North American Coal Tar Pitch Markets
 Aluminum Industry
 Graphite Electrode Industry
 Pavement Coatings
● Coal Tar Pitch Balance – North America & Europe
● Creosote/Naphthalene
● Development of New Products
● Participation in Growing Markets – Aluminum Industry
2
The Coal/Coke/Tar/Pitch Process
VFT Canada Inc.
Naphthalene
Oils
Coking
Coal
Coke
Ovens
Coke
Coal
Tar
D
I
S
T
I
L
L
A
T
I
O
N
Creosote
Carbon Black Feedstock
Aluminum Smelters
Pitch
Steel
Productio
n
Graphite Electrodes
Specialty Carbon Products
Pavement Coatings
Refractories
3
North American Coke Production Capacity
& Coal Tar Production – 2007
Coke
Tmt/annum
U.S.A.
Canada
Mexico
Total
Coal Tar
Tmt/annum
VFT Canada Inc.
# of Coke
Plants
17,500
634
19
3,400
146
4
20,900
780
1,350
65
22,250
845
2
4
North American Coke Plants
VFT Canada Inc.
1
ESSAR STEEL ALGOMA – SAULT STE. MARIE, ONTARIO
2
US STEEL CANADA - HAMILTON + LAKE ERIE, ONTARIO
3
ARCELOR MITTAL DOFASCO - HAMILTON, ONTARIO
4
TONAWANDA COKE - TONAWANDA, NEW YORK
5
US STEEL - ECORSE, MICHIGAN
6
INDIANA HARBOUR COKE - EAST CHICAGO, ILLINOIS
7
US STEEL - GARY, INDIANA
8
ARCELOR MITTAL - BURNS HARBOUR, INDIANA
9
US STEEL – GRANITE CITY, ILLINOIS
10 ERIE COKE - ERIE, PA
11 SHENANGO (DTE) - PITTSBURGH, PA
12 US STEEL - CLAIRTON, PA
13 KOPPERS - MONESSEN, PA
14 ARCELOR MITTAL - WARREN, OHIO
15 AK STEEL - MIDDLETOWN, OHIO
16 MOUNTAIN STATE CARBON - FOLLANSBEE, W. VIRGINIA
17 AK STEEL - ASHLAND, KENTUCKY
18 JEWELL COKE - VANSANT, VIRGINIA
19 SUNOCO – HAVERHILL, OHIO, PHASE 1 & 2
20 ABC COKE - TARRANT, ALABAMA
21 SLOSS IND. CORP - BIRMINGHAM, ALABAMA
22 SICARTSA / ARCELOR MITTAL - MEXICO
23 AHMSA - MEXICO
5
North American Tar Distilled
VFT Canada Inc.
1,200,000
Tar Distilled (mt)
1,100,000
1,000,000
900,000
800,000
700,000
600,000
500,000
2000
2001
2002
2003
2004
2005
2006
2007
Year
Data Source: ACCCI
6
North American Tar Distillers
VFT Canada Inc.
VFT CANADA
KOPPERS (3)
COOPERS CREEK
TANGENT RAIL (2)
LONE STAR SPECIALTY
7
North American Coal Tar Distillation (2007)
Estimated
Capacity
Tmt/annum
Distillers/Locations
VFT CANADA INC.
■ Hamilton, Ontario
KOPPERS INDUSTRIES
■ Stickney, Il
■ Clairton, PA
■ Follansbee, WV
Total
COOPERS CREEK
■ West Conshohoken, PA
TANGENT RAIL
■ Terra Haute, IN
■ Memphis, TN
Total
LONE STAR SPECIALTY CHEM
■ Lone Star, TX
North American Total
Estimated
Distilled
Tmt/annum
VFT Canada Inc.
Capacity
Utilization
%
220
165
75.0
340
245
225
810
580
72.5
45
25
55.5
32
23
55
30
54.5
32
5
15.6
1,162
800
68.8
8
North American Coal Tar Pitch Markets
VFT Canada Inc.
Primary Aluminum
Capacity
Tmt/annum
Coal Tar Pitch
Consumed
Tmt/annum
Canada
■ Alcoa
■ Rio Tinto Alcan
■ Aluminerie AIouette Inc.
Total
894
1606
545
3045
100
157
50
307
U.S.A.
■ Rio Tinto Alcan
■ Alcoa
■ Noranda
■ Century
■ Columbia Falls
185
1800
220
352
168
18
155
24
45
10
2725
252
5770
559
Aluminum Smelters
Total
North American Total
9
North American Coal Tar Pitch Markets
Graphite Electrode Plants
Electrode Capacity
Tmt/annum
VFT Canada Inc.
Coal Tar Pitch
Consumed
Tmt/annum
SGLC
■ Hickman, KY
■ Morganton, NC
60
15
15
4
Graftech
■ Monterray, MX
60
15
Showa Denko Carbon
■ Ridgeville, SC
45
10
Superior Graphite
■ Russellville, ARK
10
2
190
46
North American Total
10
North American Coal Tar-Based Refined Tar Demand
VFT Canada Inc.
130,000
125,000
metric tons
120,000
115,000
110,000
105,000
100,000
95,000
2000
2001
2002
2003
2004
year
Data Source: ACCCI
2005
2006
2007
2008
(est.)
11
North American Pitch Balance 2007
VFT Canada Inc.
Tmt
Demand
Aluminum
Graphite
Others
560
45
100
705
Production
415 (From 800 Tmt Tar)
Shortfall
290 – 210
– 80
Imports
Petro Pitch
12
European Pitch Balance 2007
VFT Canada Inc.
Tmt
Demand
Aluminum
Graphite
Others
515
170
20
705
Production
880 (From 1800 Tmt Tar)
Surplus
175 – 200
– 25
Exports
Imports
Note: Ukraine & Russia excluded
13
Canada & U.S. Creosote Consumption
VFT Canada Inc.
260,000
250,000
240,000
230,000
metric tons
220,000
210,000
200,000
190,000
180,000
170,000
160,000
2000
2001
2002
2003
2004
2005
2006
2007
2008 est
14
North American Naphthalene Consumption
VFT Canada Inc.
Data Source: ACCCI
Major Markets
%
Phthalic Anhydride
49
Naphthalene Sulphonates
33
Pesticides
Other
8
10
15
European Naphthalene Consumption
VFT Canada Inc.
200,000
metric tons
195,000
190,000
185,000
180,000
175,000
170,000
2000
2002
2003
2004
2005
2006
2007
Year
Major Markets
%
Phthalic Anhydride
40
Naphthalene Sulphonates
47
Pesticides
6
Other
7
16
Development of New Products
VFT Canada Inc.
More environmentally-friendly pitch containing
lower PAH’s (BaP)
 Low PAH Pitch – Soderberg Aluminum
Smelters
 Carbores – Specialty Graphite and
Refractories
17
Participation in Growing Markets
VFT Canada Inc.
Aluminum– Main driver for world-wide pitch demand
%
Aluminum
Graphite
Others
85
10
5
100
Growth Areas
- China (increased domestic demand)
- Middle East
- Iceland
- Canada
Low energy costs
18
Primary Aluminium Production (Tmt)
VFT Canada Inc.
,-\
South
America
China
Asia
Western
Europe
Eastern
Europe Oceania
(incl. CIS)
Year
Africa
North
America
2003
1,428
5,495
2,275
5,547
2,775
4,068
4,346
2,158
28,092
2004
1,711
5,110
2,356
6,589
3,035
4,295
4,589
2,246
29,931
2005
1,752
5,382
2,391
7,806
3,400
4,352
4,644
2,252
31,979
2006
1,864
5,333
2,492
9,349
3,593
4,178
4,680
2,274
33,763
2007
1,815
5,642
2,558
12,607 3,967
4,305
4,840
2,315
38,049
2008*
15,000
TOTAL
42,500
*Estimate
Source: International Aluminium Institute, London
19
Primary Aluminium Capacity (Tmt)
VFT Canada Inc.
,-\
South
America
Year
Africa
2006
2,116
6,629
2,541 12,000* 3,703
4,429
4,670
2,316
38,404
2007
2,125
6,577
2,713 13,000* 3,935
4,533
4,809
2,308
40,000
2010*
2,277
6,656
2,915 18,000* 5,617
4,697
5,634
2,359
48,155
China
Asia
Western
Europe
Eastern
Europe Oceania
(incl. CIS)
North
America
TOTAL
*Estimate
Source: International Aluminium Institute, London
20
New Tar Production
VFT Canada Inc.
 China


Russia
Brazil
North American and European tar
distillers are involved/pursuing options
in these markets.
21
The Future For North American Tar Distillers ?
VFT Canada Inc.
STEEL
OILS
COAL
COKE
BY-PRODUCTS
RECOVERED
TAR
PITCH
COKE
GASES
NON-RECOVERY
OF BY-PRODUCT
CO-GENERATION
22