Notes to the consolidated financial statements - NLMK Group

Glossary
TECHNOLOGY
Cold-Rolling
Changes in the structure and shape of steel achieved through
rolling the steel at a low temperature (often room temperature).
It is used to create a permanent increase in the hardness and
strength of the steel. It is effected by the application of forces
to the steel which causes change in the composition, enhancing
certain properties. In order for these improvements to be
sustained, the temperature must be below a certain range
because the structural changes in the steel are eliminated by
higher temperatures.
Hot-Rolling
The rolling process of a hot slab reducing into a coil of specified
thickness at a relatively high temperature.
Continuous Casting
Process of continuous production of billets or slabs from liquid
steel that is poured into a cast or mold.
Blast Furnace
Facility for converting prepared iron ore into liquid iron (pig iron).
It works on the counter flow principle: the charge (consisting of
ore, burden, additives and coke) is introduced from the top –
usually via a rotary chute. The hot blast flows in the opposite
direction. The blast is pre-heated in stoves and injected into
the furnace through tuyeres. Coke is used as reduction agent.
Depending on charge and method of operation, different types
of pig iron and even ferroalloys can be produced. A blast furnace
remains in operation for many years (furnace campaign). The
performance and cost efficiency of a blast furnace can be
increased by larger furnace units, automatic charging, burden
preparation, high blast temperatures, oxygen injection in the
blast and pressurised charging. Blast furnace byproducts are
blast furnace gas and blast furnace slag.
Basic Oxygen Furnace/Converter
In the basic oxygen furnace molten iron is made into steel.
Oxygen is injected to drive out carbon and other impurities
dissolved in the melt. This process generates a lot of heat,
so that recycled steel is added to keep the melt at around
1700°C. The resulting crude steel is either further purified
or alloyed in subsequent secondary metallurgy processes,
or directly brought to the casting process.
Electric Arc Furnace (EAF)
A method of producing steel through the melting of recycled
steel and other sources of iron using electricity.
Ladle Furnace
The facility used to maintain the temperature of liquid steel
during processing after tapping from the scrap-melting furnace.
This also allows the molten steel to be kept ready for use
in the event of a delay later in the steel-making process. The
ladle furnace consists of only the refractory roof and electrode
system of a scrap-melting furnace, but it has no need for a
tilting mechanism or scrap charging.
Reversing Mill
Mill stand which forms material as it reciprocates between
adjustable rolls. Consists of one or two stands, at least one
of which carries out several reversing passes.
Pickling
Removing surface oxides from metals by a chemical reaction.
Hot-Dip Galvanizing
A galvanizing process whereby steel is dipped into molten
metal. The process can be performed continuously (by running
steel strip through the molten metal) or in batches (by dipping
complete products such as automobile bodies or gates into a
metal bath).
PRODUCTS AND RAW MATERIALS
Alloy
A metal that consists of atoms of more than one element.
Changing composition and microstructure of alloys enables
the targeted engineering of desired material properties.
Slab
Compact block of crude steel, product of the casting process
in the melt shop, used as a starting material in the rolling mills
to produce hot strip.
Electrical Steel
A type of steel that exhibits specific magnetic properties, which
are required to make transformers, power generators and
electric motors. It is mainly obtained by alloying with silicon.
Coke
The basic fuel consumed in blast furnaces in the smelting of
iron. Coke is a processed form of coal.
Iron Ore Concentrate
Iron ore containing the valuable minerals of an ore from which most
of the waste material has been removed by undergoing treatment.
Sinter Ore
Product of combining iron-bearing particles under high
temperature into small chunks with aim of conserving the
iron for blast furnace process.
Pellets
An enriched form of iron ore shaped into small balls or pellets.
Pellets are used as a raw material in the steel-making process.
Scrap (Ferrous)
Ferrous (iron-containing) material that is generally remelted
and recast into new steel in electric arc furnaces. Integrated
steel mills also use scrap for up to 25% of their basic oxygen
furnace charge. Scrap is wasted steel, prepared for recycling.
Pig Iron
An alloy of iron and carbon that is produced in a blast furnace.
Crude Steel
Steel in primary form of hot molten metal.
Billet
A semi-finished steel form that is used for steel long products
such as bars, channels, wire rod or other structural shapes.
Rebar (Reinforcement Bar)
A commodity-grade steel used to strengthen concrete in highway
and building construction.
Wire Rod
Round, thin, semi-finished steel length that is rolled from a
billet and coiled for further processing. Wire rod is commonly
drawn into wire products or used to make bolts and nails.
Hot-Rolled Steel (HR, HRC)
Product that is sold in its ‘as-produced’ state off the hot-rolling
mill with no further reduction or processing steps, aside from
being pickled and oiled (if specified).
Cold-Rolled Steel (CR,CRC)
Steel that is rolled at common or low temperature. This kind of
steel has increased hardness and strength.
NLMK ANNUAL REPORT 2008 111