ISIJ International
Online ISSN : 1347-5460
Print ISSN : 0915-1559
ISSN-L : 0915-1559
Review Article
Production and Technology of Iron and Steel in Japan during 2021
The Technical Society, The Iron and Steel Institute of Japan
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2022 Volume 62 Issue 6 Pages 1027-1048

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1. Overview of the Japanese Iron and Steel Industry

2021 was the second year of the disaster (coronavirus pandemic) by the novel coronavirus (COVID-19), and was a year when countries across the world confronted the difficult challenge to achieve stopping the spread of infections and maintaining economic activity simultaneously. Based on progress in the medical understanding of COVID-19 and the implementation of countermeasures, there were moves to restart economic activities. As before, however, lifestyles were typical of life in the midst of the coronavirus pandemic, as symbolized by the unprecedented reality of the Tokyo Olympics, which was delayed by one year and then held without spectators, and with the repeated emergence of new variants of the coronavirus, there was still no hope of arriving in an “after-Covid-19” era. This paper reviews the conditions in the global and Japanese economies, the world steel industry and the Japanese steel industry amid the uncertainties of the previous year.

In 2021, the global economy escaped from the extremely large economic contraction caused by the coronavirus pandemic. In comparison with the previous year, real economic growth rate in 2021 was estimated at +5.9% in the world as a whole, +5.6% in the United States, +5.2% in the EU, +8.1% in China, +9.0% in India and +1.6% in Japan, which was a sharp turnaround from 2020 when all of these countries except China experienced minus growth.1) On the other hand, in spite of the pandemic, there were no signs of an end to the struggle for hegemony between the United States and China, as symbolized by the response to the Beijing Winter Olympics. Amid the ongoing confrontation between the US and China in many fields, the situation where economic friction between the two countries cast a shadow over the global economic outlook remained unchanged.

In the Japanese economy, real economic growth rate turned positive, but there was still no declaration that the country had escaped deflation,2) and the recovery of the economy in 2021 was also among the weakest in the advanced nations. Compared with the other advanced economies, the pace of recovery was slowed by conditions unique to Japan, in that the recession caused by the pandemic was superimposed on an increase in the country’s consumption tax under a deflationary environment, when there were high expectations for fiscal stimulus and tax cuts. Due to long-term low real economic growth rate over the country’s “lost 20 years” (or lost 30 years), Japan international ranking is falling, even in the international comparison of labor productivity (real GDP growth/working population).3) Because Japan is an domestic demand-based economy, in which private final consumption spending is the largest constituent item of GDP,4) the second Kishida Cabinet announced an economic policy of demand creation,5) and a continuation of demand creation is expected in order to realize growth on the same level as the other advanced nations.

Table 1 shows the Top 10 countries of crude steel production in 2021.6,7) The order has been unchanged since 2018, with China ranking No. 1, followed by India as No. 2 and Japan as No. 3. Total world crude steel production increased to approximately 1950 million tons, representing an increase of +3.8% from the previous year. China’s crude steel production decreased to approximately 1030 million tons (−3.0% from 2020), while India recorded a substantial increase to approximately 120 million tons (17.9% increase from 2020). There have been reports that China’s crude steel production peaked in 2020 and will also decline for the second consecutive year in 2022. According to the Ministerial Report of the Global Forum on Steel Excess Capacity (GFSEC),8) structural excess steel production capacity remained high, as before, at approximately 600 million tons in 2020. Although there have been calls on China to return to the GFSEC, this has not been realized to date.

Table 1. Top 10 crude steel production countries (Unit: Million tons).6,7)
Order1995CY2000CY2005CY2010CY2015CY2017CY2018CY2019CY2020CY2021CYChange Rate (%)
2021/20
1JapanChinaChinaChinaChinaChinaChinaChinaChinaChina▲ 3.0
101.6128.5355.8638.7803.8870.9928.31001.31064.71032.8
2ChinaJapanJapanJapanJapanJapanIndiaIndiaIndiaIndia17.9
95.4106.4112.5109.6105.1104.7109.3111.4100.3118.2
3USAUSAUSAUSAIndiaIndiaJapanJapanJapanJapan15.8
95.2101.894.980.589.0101.5104.399.383.296.3
4RussiaRussiaRussiaIndiaUSAUSAUSAUSAUSAUSA18.0
51.659.166.169.078.881.686.687.872.785.8
5GermanyGermanySouth KoreaRussiaRussiaRussiaSouth KoreaRussiaRussia(e)Russia(e)5.6
42.146.447.866.968.770.572.571.671.675.6
6South KoreaSouth KoreaIndiaSouth KoreaSouth KoreaSouth KoreaRussiaSouth KoreaSouth KoreaSouth Korea5.1
36.843.145.858.969.771.072.271.467.170.6
7ItalyUkraineGermanyGermanyGermanyGermanyGermanyGermanyTurkeyTurkey12.9
27.831.84.543.842.743.342.439.635.840.4
8BrazilBrazilUkraineUkraineBrazilTurkeyTurkeyTurkeyGermanyGermany12.4
25.127.938.633.433.337.537.333.735.740.1
9UkraineIndiaBrazilBrazilTurkeyBrazilBrazilBrazilBrazilBrazil14.7
22.326.931.632.931.534.835.432.631.436.0
10IndiaItalyItalyTurkeyUkraineItalyIranIran (e)Iran (e)Iran (e)▲ 2.0
22.026.829.429.123.024.024.525.629.028.5
World Total752.3848.91148.01433.41622.91734.91825.61880.11880.41951.43.8

(e) Values based on partial data or data other than WSA.

In 2021, the crude steel production of the Japanese steel industry increased by a large +15.8% from the previous year, reaching 96.33 million tons.9) In 2020, Japan’s crude steel production fell below the 87.53 million tons (2009) after the global financial crisis, dropping to 83.19 million tons (−16.2% from 2019) due to the coronavirus pandemic. However, during fiscal year 2021, crude steel production increased in tandem with the economic recovery, and returned to just one step below the level of approximately 100 million tons/year which it had maintained since 1972. Moreover, a strong trend is seen in domestic demand in FY 2022, and external demand is also expected to be on the same level as in FY 2021.10)

Across the board, all of Japan’s integrated steel makers reported good results, as domestic demand for steel products increased due to the economic recovery from the coronavirus pandemic and price increases due to tightening of the supply-and-demand equilibrium, and overseas businesses also contributed to performance. However, in spite of this favorable short-term environment, long-term growth in domestic demand for steel products is not expected in the current circumstances. Given this situation, Japan’s steel makers are continuing to carry out structural reforms in domestic facilities, and are proceeding to shut down blast furnaces and consolidate production bases, etc. as planned. On the other hand, both Nippon Steel Corporation and JFE Steel Corporation have decided to increase production capacity for electrical steel sheets, and there have been moves by Nippon Steel to expand and strengthen facilities targeting high value-added production, including a decision to construct a new next-generation type hot strip mill which will enable efficient production of ultra-high strength steel sheets. From the longer term perspective, Japan’s three integrated steel makers have formulated and announced a long-term vision for realizing carbon neutrality by 2050. Thus, 2021 was also a year which symbolized the fact that carbon neutrality is now the most important target in the steel industry.

Where technology is concerned, two keywords were the focus of attention. These are, as was expected, “DX (digital transformation)” and “carbon neutrality.” Majority of companies are acquiring DX business certification and promoting implementation at production sites, for example, by obtaining permission to operate the 5G wireless stations that are essential for data communication in a steel works, and also by expanding the scale of their investment in DX, including the development of digital human resources. Companies are also integrating digital technologies and collection of on-site and equipment-related information (data) by drones (small unmanned aerial vehicles), and deploying digital technologies at production sites at a fast pace. The second keyword is carbon neutrality. Since the Prime Minister’s declaration that Japan intends to achieve carbon neutrality by the year 2050,11) reduction of CO2 emissions in the steel industry has become the highest priority issue also in a technological aspect. The industry has further accelerated efforts to achieve Zero Carbon Steel.12) As part of the Green Innovation Fund project (scale: approximately \2 trillion),13) the “Hydrogen Utilization Project in the Steelmaking Process” with funding of approximately \200 billion was launched by the New Energy and Industrial Technology Development Organization (NEDO; a National Research and Development Agency).14) The Iron and Steel Institute of Japan (ISIJ) also held CUUTE-1 (The First Symposium on Carbon Ultimate Utilization Technologies for the Global Environment).15) In addition, the ISIJ decided to establish a new steel carbon neutrality research grant system16) to attract new wisdom in the iron and steel field in order to aid in the accumulation of technologies that contribute to reduction of CO2 emissions, and is promoting science-based collaboration that transcends the framework of industrial fields. The following presents an outline of the environment surrounding the Japanese iron and steel industry in 2021 from the viewpoints of trends in raw materials for iron and steel, trends in steel consuming industries and the condition of crude steel production in Japan and the world.

1.1. Trends in Raw Materials for Iron and Steel

Total iron ore production by the Big 3 (Rio Tinto, BHP, Vale) in 2021 was affected by delays in the pace of recovery of operating rates due to the effects of the coronavirus crisis, and also by heavy rains in Australia.17) The final total for the year was 846.67 million tons, representing an increase of 0.6% from 2020.18,19,20)

The spot price of iron ore (CFR China, Fe 62%) rose sharply from a monthly average of US$168.13/ton in January 2021 to a monthly average of US$214.55/ton in June, reflecting a trend toward recovery of demand from the coronavirus crisis from the second half of 2020. However, this situation changed dramatically as a result of developments in China, which included calls on the steel industry to reduce production with the aim of achieving China’s “30–60 Targets” (CO2 emissions peaking out in 2030, and carbon neutrality to be achieved by 2060) announced by President Xi Jinping at the United Nations General Assembly in September of 2020, decreased demand for steel products for construction by a slowdown in investment in real estate in line with measures to rein in investment, and reduced demand for automobiles due to shortages of semiconductors and other parts. As a result, the monthly average price fell to US$94.97 in November.21,22)

In spite of continuing restrictions on imports of Australian coal to China accompanying trade friction between the two countries, the price of Australian metallurgical coal (spot price, for China) rose as Europe, India, Japan, Korea and other countries increased imports of Australian coal as those countries were reopening their economies. The price of coal rose from somewhat more than US$100/ton at the start of the year to a historical high of over US$400/ton (CFR China, heavy coking coal), at the end of October. At the same time, the spot price of American and Canadian coal also increased to more than US$600, and the price difference between these coals and Australian coal expanded to more than US$200/ton. Subsequently, the prices of American and Canadian coal softened as a result of China’s policy of reducing steel production, the reaction against these excessively high prices and other factors, and as a result, the polarization of coal prices was substantially resolved, and the CFR China price converged in the range of US$300–350 at one time around the end of the year.23)

Figure 1 shows the long-term transition of the annual average import prices of iron ore and metallurgical coal. The import prices of both iron ore and metallurgical coal rose in comparison with 2020, reflecting the sharp increases in the spot prices of ore and coal for China.24)

Fig. 1.

Transition of world crude steel production and unit price of imported iron ore & metallurgical coal (calendar year).6,24)

Figure 2 shows the transition of the annual average price of steel scrap (H2) in the Tokyo area. Driven by a decreased amount of steel scrap generation resulting from reduced automobile production, demolition of buildings, etc. during the coronavirus crisis, as well as increased imports of steel scrap by China toward achievement of its “30–60 Targets,” the price of steel scrap (H2) rose rapidly from a monthly average of ¥18000/ton in December 2020 to a monthly average of ¥42000/ton in December 2021, which was the highest price during the past 10 years.25,26)

Fig. 2.

Transition of annual average of steel scrap (H2) price in Tokyo area.25)

1.2. Trends in Steel-consuming Industries

According to the Quarterly Report of Iron and Steel Supply and Demand27) and the websites of the Japan Automobile Manufacturers Association, Shipbuilders’ Association of Japan and the Japan Electrical Manufacturers Association, the trends in steel-consuming industries in 2021 were generally as follows. For details, please refer to the original texts or the websites of the Japan Iron and Steel Federation (JISF), the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the respective industrial associations.

[Civil engineering] In public civil works, the amount of orders received showed an increased trend from the previous year due to implementation of the Japanese government’s “5-year acceleration measures for disaster prevention, disaster mitigation, and national resilience.” In private civil works, there was a recovery from the previous fiscal year, when demand dropped due to the coronavirus, centering on the manufacturing and transportation industries. In the civil engineering sector as a whole, a slight increase in consumption of steel products from FY 2020 is foreseen.

[Construction] Steel demand in the construction sector is expected to exceed that in FY 2020 in both residential and nonresidential construction. In residential construction, a surge in demand for owner-occupied homes is expected accompanying measures to support acquisition of dwellings, and in sales in lots (real estate subdivisions and condominiums), sales of detached houses are increasing due to the spread of telework in response to the coronavirus crisis. As a result of these two factors, total new housing starts are expected to increase from the previous year. In nonresidential construction, demand decreased due to restrictions on economic activity in response to the spread of the coronavirus pandemic during FY 2020. However, in the current fiscal year, construction of offices, stores, factories, etc. has gradually recovered with the reopening of the economy accompanying widespread vaccination of the population, and an overall increase from 2020 is predicted. Thus, in the construction sector as a whole, an increase in consumption of steel products from the previous year is expected.

[Shipbuilding] The order receiving environment (volume of contracts for export ships) is improving accompanying an increase in ship prices. The volume of work in hand also decreased to the equivalent of about a 1 year, or gross tonnage of 14.03 million GT at the end of October 2020, but has now returned to backlog of around 1.6 years. The volume of export ship contracts is recovering, but owing to the time lag between the receipt of orders and construction and the fact that many ships will be completed in 2022–2023, both the start of new construction (new keels laid) and consumption of steel are forecast to decrease during FY 2021 from the previous fiscal year.

[Automobiles] In spite of strong demand, domestic sales are forecast to fall below FY 2020, as supply was unable to keep pace with demand. Domestic production is expected to remain flat from FY 2020 due to a series of plant operation stoppages at all auto makers against the backdrop of parts supply shortages caused by the coronavirus pandemic. In spite of strong demand in many countries, exports of complete automobiles are also expected to be flat from FY 2020 due to the effects of production decreases at all makers. While production was flat due to supply shortages of automotive parts, an increase in steel consumption is forecast, supported by exports of knock-down (KD) kits, etc.

[Industrial machinery] Economic recovery from the coronavirus pandemic can be seen in both Japan and other countries, and there is also an increasing tendency in capital investment by companies. The rebound increase from the effects by the coronavirus pandemic in FY 2020 will continue through the fiscal year, and in particular, construction machinery, metalworking machinery and machine tools are gradually recovering, supported by the recovery of external demand. Based on these trends, steel consumption is forecast to exceed that of the previous fiscal year.

[Electrical machinery] Although production of household electrical appliances and consumer electrical products has continued at a high level in recent years, a decrease is foreseen. In heavy electrical machinery, there is an increasing tendency against the background of a rebound from the large decrease due to the coronavirus pandemic in FY 2020, as well as the recovery automobile production and capital investment in Japan and overseas. In industrial electronics, the completion of a cycle in demand for electronic computers and similar equipment could be seen, but thanks to a strong trend in telecommunications equipment led by 5G demand, the industrial electronics and telecommunications equipment sector is expected to exceed FY 2020. Based on these conditions, steel consumption is expected to exceed that of the previous year.

1.3. Crude Steel Production in Japan

Supported by the recovery of demand from the coronavirus crisis, crude steel production in Japan in 2021 was 96.33 million tons, or an increase of 15.8% compared to the previous year.8) Production volume recovered from 2020 due to the recovery of domestic demand in the civil engineering, construction, machinery and automotive sectors, together with increased global steel demand with the resumption of economic activity, but did not reach the pre-pandemic level of 201928) due to recent moves to consolidate facilities, such as the shutdown of blast furnaces at Nippon Steel. In spite of various risk factors, which include the effect of variants of the novel coronavirus, disruption of global supply chains, sharply rising raw material expenses, US-China trade friction and trends in the Chinese economy, firm trends are foreseen in both domestic and external demand in 2022.8)

By furnace type, converter steel production was 71.94 million tons (increase of 16.0% from the previous year), electric furnace steel production was 24.39 million tons (increase of 15.4% from the previous year), and the ratio of electric furnace steel was 25.3% (decrease of 0.1% from the previous year) (Fig. 3). By steel type, production of plain carbon steel was 73.91 million tons (increase of 12.4% from the previous year), and production of special steel was 22.42 million tons (increase of 28.6% from the previous year) (Fig. 4). The continuous casting ratio of special steel has been substantially constant at around 95% since 2014.8,29)

Fig. 3.

Transition of crude steel production in Japan (calendar year).9,29)

Fig. 4.

Crude steel production and continuous casting ratio for ordinary steel and special steel.29)

1.4. World Crude Steel Production

Table 1 shows the transition of crude steel production in the world’s top 10 countries and in the world as a whole. World crude steel production in 2021 was 1951.43 million tons, or an increase of 3.7% in comparison with 1880.41 million tons in the previous year.6) Looking at the crude steel production of the main countries, China’s crude steel production decreased by 3.0% from the previous year, to 1032.79 million tons, while No. 2 India recorded 118.23 million tons, or an increase of 17.9% from the previous year, and production by No. 3 Japan recovered to 96.33 million tons, representing an increase of 15.8% from 2020. Among others, although the EU and the North and South American regions recorded large drops in crude steel production in 2020, in 2021, production in those areas recovered to roughly the same level as in 2019 or higher.7)

China’s crude steel production in 2021 was 1032.79 million tons. Although China has exceeded 1000 million tons for 3 consecutive years since first breaking 1000 million tons in 2019, production declined for the first time in the 6 years since 2015, as China recorded a 3.0% decrease compared with 2020.6,7) This was caused by moves to stop or reduce production, centering on state-owned companies, in response to a request to reduce crude steel production in 2021 from the level in 2020 toward the achievement of the “30–60 Targets” announced in 2020. Among other factors, weak domestic demand in China has also been pointed out. In China, steel materials for construction occupy a high share of total steel demand, with construction accounting for 58.5% of steel consumption in 2020. However, under the Chinese government’s policy of restraining investment by limiting local bonds and the supply of credit to local governments, steel demand for construction weakened rapidly from the spring of 2021 due to a slowdown in investment in infrastructure such as railways, highways, etc. from around the spring of 2021, following a decrease in housing demand and action to apply more stringent conditions to fund-raising by real-estate development companies introduced in the summer of 2020. Demand for steel for automotive applications also declined due to the large drop in unit sales of automobiles caused by shortages of parts, beginning with semiconductors. On an annual conversion basis, unit sales of automobiles declined from 27 million (actual period: 2nd half of 2020 to April 2021) to 23 million in September 2021. Since this also resulted in an increase in the ratio of steel inventories to sales, reduced production in order to draw down inventories is expected to continue for the time being. However, a moderate recovery of demand for both construction materials and automotive materials is forecast, and China is expected to return to increased production from around the spring of 2022.20)

India’s crude steel production in 2021 was 118.23 million tons, and has now exceeded 100 million tons for 5 consecutive years since 2017.6) In spite of negative factors, which included a resurgence of the novel coronavirus and a decrease in unit sales of automobiles from the previous years due to reduced production caused by a shortage of semiconductors, a condition of increased crude steel production from the previous year has continued since the spring of 2021.30) In FY 2022, there is again a heightened risk of infection due to the increased mobility of the population and an influx of new coronavirus variants, and this has given rise to fears that economic activity may temporarily stall. Nevertheless, the normalization of economic activity is progressing thanks to widespread use of vaccines, etc., and a feeling that the business climate is gradually returning to stability can be seen. Since a high real GDP growth rate of +7.6% is predicted for 2022,31) a firm tone in demand for steel is also expected.

2. Technology and Equipment

As issues facing Japan’s metallic materials industry, the Ministry of Economy, Trade and Industry (METI) has identified the following: i) Sophistication and diversification of user needs for materials; ii) Overseas competitors catching up; iii) Decreased domestic demand and energy and environmental restrictions; and iv) Impact of digitalization on reform.32) The strategies proposed for technology development include development of material design technologies, development of manufacturing technologies, development of analysis and evaluation technologies, training of human resources, preventive maintenance utilizing digital data, development of effective utilization technologies for resources and energy, and development of materials considering environmental impacts.32) Strategies for strengthening the domestic manufacturing base include prevention of industrial accidents, strengthening of competitiveness by business reorganization, responding to energy and environmental issues, and responding to changes caused by digitalization. One global strategy is resource circulation, including recycling, as a response to the risks associated with raw material supplies.32) Japan’s steel makers are also promoting technology development and the introduction of equipment in line with these directions and issues.

In recent years, digitalization and networking have spread rapidly at the global scale, and science and technologies such as IoT (Internet of Things), AI (artificial intelligence), sensors, biometric authentication, and robots are progressing. Technological development utilizing these achievements is being promoted, particularly in the field of monodzukuri (Japanese-style manufacturing). Japan’s 5th Science and Technology Basic Plan defines efforts to realize the world’s first “super smart society” as “Society 5.0,” and is targeting the creation of new industries and social transformation by ensuring that achievements in science and technology permeate all fields and regions. With the ongoing fusion of “information space” (cyberspace) and “real space” (physical space), and also extending to “psychological space” (brain, etc.), acquisition, integration, analysis and platforming of information and data in cyberspace have become critical. Also in the iron and steel industry, all major integrated steel makers are continuing to grapple with operation and equipment maintenance at production sites, research and development and production development by applying AI technology.

Against this backdrop, the Japanese iron and steel industry is steadily promoting product development that meets the needs of users, for example, by developing ultra-high-strength steels with high formability to compete with other materials, while also considering cooperation between materials, such as the pursuit of new value by composites which combine different types of materials.

Among countermeasures for global warming, with the aim of at achieving carbon neutrality by 2050, Japan has announced a target of reducing greenhouse gases (GHG) by 46% from the level of 2013 by FY 2030, and has also presented a long-term vision as an “ideal future model,” including the energy sector and industrial sector, in its “Long-Term Strategy Under the Paris Agreement as a Growth Strategy”.33) The Japanese steel industry has also announced that it will take on the challenge of “Zero Carbon Steel” as decarbonized monodzukuri, and has already begun various efforts.

The following introduces the main trends in technology and technical topics at the Sustaining Members of the ISIJ by field of iron and steel technology.

2.1. Ironmaking

Pig iron production in 2021 was 70.34 million tons, which was an increase of 14.2% from the previous year, but a decrease of 6.1% from 2019.8) As part of a review of its production system, in September 2021 Nippon Steel shut down No. 1 and No. 2 BFs and No. 1 and No. 2 sinter plants at Setouchi Works Kure Area, and No. 1 BF, No. 5 coke oven, and No. 5-1 sinter plant at Kansai Works Wakayama Area, while the scheduled shutdown of No. 4 coke oven at the Wakayama Area was delayed from the first half of FY 2022 to the end of FY 2024. Nippon Steel also announced that it will shut down No. 3 BF, No. 2A, B, C and D coke ovens, and No. 3 sintering plant at East Nippon Works Kashima Area, targeting the end of FY 2024. As a result of these moves, 21 blast furnaces were in operation in Japan at the end of 2021, down 4 units from the end of 2019. This included 14 operating BFs with inner volumes of 5000 m3 or larger.

In equipment revamping, Nippon Steel completed repairs of its Nagoya Works No. 3 coke oven, and JFE Steel completed the relining of West Japan Works Kurashiki District No. 4 BF and repairs of West Japan Works Fukuyama District No. 3 coke oven battery B.

In technology development, Nippon Steel completed the construction of a small-scale test plant at its Hasaki Research and Development Center as part of the “Innovative and integrated high-grade steel making processes coping with inevitable degradation of iron ore,” which is being carried out jointly with JFE Steel, Kobe Steel, Ltd. and the Japan Research and Development Center for Metals (JRCM), and started verification test in January 2022.34)

2.2. Steelmaking

Crude steel production in 2021 was 96.33 million tons, an increase of 15.8% from 2020 but a decrease of 3.0% from 2019.9) As part of the above-mentioned review of the production system at Nippon Steel, the steelmaking facilities at Setouchi Works Kure Area were shut down in September 2021. In addition to some equipment of No. 3 continuous casting machine at Kansai Works Wakayama Area, which will be shut down in the first half of FY 2022, Nippon Steel also announced that it plans to shut down No. 1 continuous casting machine at East Nippon Works Kimitsu Area, targeting the end of FY 2021 (end of March 2022). In moves to introduce new equipment, JFE Steel introduced a new No. 7 continuous casting machine at West Japan Works Kurashiki District.

As a result of the strengthening of environmental regulations in China, price increases due to a tight supply-and-demand situation had become apparent since the previous year. In addition, in 2021, production of fused magnesia, which is a raw material for magnesia refractories, and fused alumina, a raw material for alumina refractories, has also decreased significantly due to shortages of electric power in China, heightening anxiety about procurement, particularly of fused magnesia.35)

Similarly, the market prices of ferrosilicon, nickel, manganese and other materials used as deoxidizing agents are also rising,26,34) and accompanying the recovery of steel production, the price of graphite electrodes also shows an upward tendency because the price of the raw material needle coke is rising again, and these are all factors in higher steelmaking costs.36,37)

As an example of publicly-known development achievements, JFE Steel’s “Chromium ore smelting reduction process using hydrocarbon fuel burner” received the 53rd (FY 2020) Ichimura Prize in Industry for Outstanding Achievement, and “Establishment of a closed loop recycling technology for used refractories” received the FY 2021 Resource Recycling Technology & System Prize “Industrial Science and Technology Policy and Environment Bureau Director-General’s Award, Ministry of Economy, Trade and Industry (METI).

2.3. Steel Products

2.3.1. Sheets

In the field of automotive steel sheets, auto body weight reduction by using higher strength steel sheets, which make it possible to reduce the sheet thickness, is strongly required in order to further improve fuel economy and reduce CO2 emissions, and the applications of high tensile strength steel sheets (HTS) are expanding. However, due to the tradeoff relationship between strength and formability, the parts in which HTS products with strength of 980 MPa and higher could be applied had been limited to simple parts with easily-formed shapes until now.

To overcome this problem, Nippon Steel developed a shear forming method which is suitable for forming of parts with an S-shape, which is a distinctive feature of automotive components such as the front side member and rear member. The behavior of the steel in the die was analyzed by a simulation technique, and it was found that cracks and wrinkles can be avoided by changing the blank shape and deformation method of the steel material, making it possible to form complex shapes when using ultra-HTS materials. This was adopted by auto makers, resulting in the adoption of 1180 MPa class Hi-Ten in the front side member, which is a hard-to-form part, for the first time in the world.

In addition, Nippon Steel developed a press-forming technology which performs optimal control of the material deformation during press forming by utilizing a simulation technique for complex shapes having an L-shaped or T-shaped curve or continuous flange, which are frequently seen in automotive body parts, and received the 53rd Ichimura Prize in Industry for Distinguished Achievement (Contribution Prize). In comparison with the conventional technology, the amount of material deformation during forming is reduced to 50% or less, making it possible to form ultra-high tensile strength steel sheets into parts with complex geometries.

On the other hand, JFE Steel developed a springback suppression forming method for 1.5 GPa (1470 MPa) class HTS, which is the world’s highest strength level in cold press-formed automotive structural parts, and this was adopted in the roof center reinforcement. Since the springback that occurs in HTS during press-forming of steel sheets is large in comparison with that in ordinary steel sheets, the die shape must be designed more precisely so as to obtain the correct part shape after springback, but fabricating these dies in advance is extremely expensive and time-consuming. By utilizing the Bauschinger effect, JFE Steel developed a method that reduces the residual stress during press-forming, which is a factor in springback.

However, if ultra-HTS materials are applied in front side members, rear side members and other parts which are required to absorb collision energy, the part may buckle on impact or the base material may fracture during bending deformation, making it impossible to obtain the necessary energy absorption. To overcome this problem and enable application of ultra-HTS to energy-absorbing parts, JFE Steel developed a multi-material structure in which a high ductility, high adhesion resin is sandwiched between the body of the part, which is made from ultra-HTS, and a part made from a thin gauge steel sheet. Sandwiching the resin greatly expands the bending radius of the deformed area when an energy-absorbing part buckles or bends during a collision, and the energy-absorbing capacity of the part is substantially increased because the ultra-HTS part does not fracture. As an additional advantage, the vibration generated during travel is broadly reduced by the resin, which easily absorbs vibration.

JFE Steel developed a hot-continuous rolling process (hereinafter “endless rolling”) for HTS. Endless rolling of HTS was achieved by the development of an original coil joining technology. This technology was introduced at the Hot Strip Mill at East Japan Works (Chiba District) and is contributing to improved productivity and stable production of HTS.

Simultaneously with press-formability, corrosion resistance is also necessary in high strength, thin gauge auto body parts in order to improve the durability of the auto body. JFE Steel is promoting the development of high tensile strength galvannealed steel sheets (hereinafter, HTS GA) with excellent formability, and received the Commendation for Science and Technology of the Minister of Education, Culture, Sports, Science and Technology (Development Category) for the development of a manufacturing technology for hot-dip galvanized thin steel sheets utilizing innovative atmosphere control. JFE Steel succeeded in suppressing this concentration of strengthening elements at the steel sheet surface, thereby eliminating this source of defects, by precisely controlling the atmosphere in the manufacturing process. As a result, it is now possible to increase the addition of strengthening elements and produce 590 to 980 MPa class HTS GA steel sheets without surface defects, while also improving elongation, which is an index of press-formability, by approximately 20% in comparison with the conventional steel.

JFE Steel received the 2020 Steelie Award for the development of a resource saving-type Si gradient magnetic steel sheet which is suitable for high-speed motors. The Steelie Awards are given by the Worldsteel Association each year in 7 categories. JFE Steel received the 2020 Award in the “Innovation of the Year” category, which recognizes the development of innovative technologies that contribute to areas such as reduction of environmental loads and improvement of productivity, for the new Si gradient steel. The new product enables higher efficiency and more compact designs in motors by simultaneously achieving both low high-frequency iron loss and high magnetic flux density by optimization of the Si concentration gradient in the sheet thickness direction. JFE Steel was also the first Japanese steel maker to receive the Steelie Award.

In March 2021, Kobe Steel started commercial operation of a continuous hot-dip galvanizing line (No. 3 CGL) at its Kakogawa Works Cold Strip Mill. No. 3 CGL is used jointly as a production line for both cold-rolled steel sheets and hot-dip galvanized (Zn-coated) steel sheets, and is equipped with state-of-the-art heat treatment functions. In addition to expanding the company’s production capacity, the new plant makes it possible to respond to future needs for even higher strength and higher formability.

2.3.2. Plates

In the field of plates, Nippon Steel developed a high ductility steel plate with excellent collision and grounding resistance for use in ship hulls, which was awarded the Third Japan Open Innovation Grand Prize by the Minister of Land, Infrastructure, Transport and Tourism. Oil spills caused by ship collisions cause enormous pollution of the marine environment. To alleviate ship damage by improving the properties of steel materials, Nippon Steel developed this new high ductility steel with a 50% higher elongation value than the conventional steel by reducing and dispersing impurities and inclusions in the steelmaking process to the minimum possible limit, and achieving the ideal metallurgical structure by utilizing a thermomechanical process to refine the microstructure and eliminate factors that deteriorate elongation.

JFE Steel developed the world’s first 780 N/mm2 class steel plate which enables high heat input welding and received Ministerial certification for this product as a low yield ratio 780 N/mm2 class steel plate for building structures. Its main application is the welded built-up box columns used in the lower-story section of steel frame columns of high-rise buildings, where its combination of high strength and high deformability (low yield ratio) contributes to securing the earthquake-proof safety of the building. In comparison with conventional structures, the developed steel makes it possible to construct higher high-rise structures and larger spans, and also enhances design freedom, for example, by making it possible to secure large open spaces in the lower stories. Because high heat input welding is possible, the new product also responds to the need for labor-saving to cope with the shortage of construction site welders, which is becoming an increasingly serious problem in the construction industry, and has achieved a substantially shorter welding time in box column welding. High strength and a low yield ratio were achieved simultaneously by composition design and cooling control utilizing newly-introduced quenching equipment.

2.3.3. Pipes

High alloy OCTG (Oil Country Tubular Goods) seamless pipe manufactured by Nippon Steel were adopted by the Northern Lights Joint Venture (hereinafter, JV), which is a CCS (carbon capture and storage) project in Europe’s North Sea led by Equinor ASA (Head Office: Kingdom of Norway). The JV aims to commercialize a service in which carbon dioxide (CO2) captured from exhaust gas generated by industrial sources in the urban areas of Norway and neighboring countries will be collected and transported to an intermediate storage facility and then transported by pipeline 100 km offshore for injection into a subsurface reservoir located 2600 m under the seabed. When injecting CO2 under the seabed, high corrosion resistance is required in the steel pipes used to inject highly concentrated and liquefied CO2. The high alloy OCTG developed by Nippon Steel has excellent corrosion resistance, and can be used without corroding, even under highly concentrated CO2 environments. The JV has already begun work, targeting the start of operation in 2024. Although Nippon Steel has supplied about 130 tubes (1550 meters) of carbon steel OCTG to date, the JV also recently placed a new order for the high alloy OCTG. Supply was scheduled to start in October of 2021, and will involve a total of approximately 120 tubes (1390 meters).

Nippon Steel and Sumitomo Corporation were named the Equipment Supplier of the Year 2020 jointly, an award which is selected once each year by the Royal Dutch Shell Group (hereinafter, Shell). Only one company in the world is selected to receive this award each year. This is the fourth time Nippon Steel has received the award, including 2015 and the 3 consecutive years of 2018, 2019 and 2020.

The award is given to the supplier that makes the most important contribution to Shell’s development and production targets and advances Shell’s goal of achieving net zero emissions of GHG by the year 2050. The award was given based on an evaluation that Nippon Steel is continuing to supply the steel pipes and tubes that are necessary and indispensable for Shell with a high level of on-time delivery performance, and thus is making a critical contribution to maintaining Shell’s competitiveness.

2.3.4. Bars, Shapes and Cast & Forged Steel

A manufacturing technology for environment-friendly super-high-strength wire rods for bridge cables developed by Nippon Steel received the Ministry of Education, Culture, Sports, Science and Technology (MEXT) Minister’s Commendation for Science and Technology (Development Category) in FY 2021. Conventionally, bridge wires used in the main cables of suspension bridges were produced from high carbon steel wire rod material supplied by a steel maker. The wire manufacturer heated this material, performed heat treatment to adjust the metallurgical structure and tensile strength by immersing the material in a molten lead bath in a process called lead patenting (hereinafter, LP process), and then performed wire drawing and Zn coating. However, due to the low production capacity of the LP process and environmental regulations on lead imposed by the national government, production of a wire rods that can be drawn without using the LP process had been strongly desired.

In this development, Nippon Steel succeeded for the first time in the world in developing a wire rod for use in bridge wires that can be drawn without the LP process by effective addition of boron and titanium, which was without precedent in this application, in order to avoid the formation of a microstructure that would reduce the ductility of the wire, and performing DLP (Direct in-Line Patenting) to adjust the microstructure and tensile strength by immersing the material in a fused salt bath immediately after rolling.

Japan Steel Works M&E, Inc. introduced a Four-Die Forging Device (FDFD) developed by Lazorkin Engineering (Ukraine) in a 3000-ton press machine at its Muroran Plant. The FDFD enables simple four-side forging of round and square billets and blooms by Four-Die Forging, in which vertical and horizontal pressure is applied simultaneously, and makes it possible to shorten the forging time by as much as 40%.

2.3.5. Cleanliness Evaluation of Steel Materials

Sanyo Special Steel Co., Ltd. developed a cleanliness evaluation technique which contributes to further improvement in the reliability of special steel products. In order to improve the fatigue strength of steel materials, it is necessary to reduce nonmetallic inclusions, which become the point of origin of fatigue fracture. However, due to the low probability of existence of nonmetallic inclusions in high cleanliness steels, it is necessary to investigate a larger volume in evaluations of high cleanliness products. With conventional techniques such as microscopic observation and ultrasonic flaw detection, it was difficult to evaluate the maximum inclusion size and the various types of inclusions accurately in a short time. To solve this problem, Sanyo Special Steel developed a fast and accurate measurement technique for evaluating the largest inclusions in steel, with a larger volume as the investigation target, by inducing fatigue fracture by a combination of embrittlement by hydrogen and ultrasonic fatigue testing, using an original test piece design with an enlarged size. Applying the statistics of extreme value method to the results of multiple measurements by the developed method has also made it possible to estimate the size of the largest inclusions contained in steel materials with higher accuracy than in the past.

2.4. Measurement/Control/Systems

In measurement-related technologies, JFE Steel developed “Autonomous ultrasonic testing robots for inspecting steel plates” by combining a self-propelled robot and an ultrasonic flaw detector, and introduced three units in the off-line plate flaw inspection process at the plate mill at East Japan Works Keihin District. The robot uses an indoor-type high precision self-position recognition system, and can perform ultrasonic flaw inspection while moving automatically on a target route by recognizing differences in its own position and the target position where the robot should move on the plate. Because all processes from the actual flaw detection operation to the pass/fail judgment can be automated, inspection reliability is equal to that of on-line automatic flaw inspection, and inspection reliability and work efficiency were improved by automation of manual flaw inspection work. In addition, the inspection results are automatically stored as digital data, contributing to improvement of traceability and simplification of quality trend management. Usability has also been significantly enhanced, as the size and weight of the robot were reduced to a level where it can be lifted and transported by one person. JFE Steel also developed a “Surface inspection system with texture analysis” by applying image processing technology based on human visual perception to on-line inspection. With the conventional image-type surface inspection method, visual inspection by human inspectors was unavoidable in some cases, as it was difficult to detect defects when the difference in contrast was small, but the automatic detection has become possible with the developed method, which enables automatic detection of defects with only slight contrast differences that were difficult to detect automatically with the conventional technology. This system calculates the degree of similarity between photographed images based on human visual perception and stripe patterns with various lengths and directions, evaluates the results statistically, and identifies defective parts by quantifying the difference between the pattern and a normal part as the degree of anomaly. This system was introduced in the manufacturing process for hot-dip galvanized steel sheets at West Japan Works Kurashiki District, and is contributing to improvement of the surface quality of steel sheets by sure surface defect detection by automation of visual inspection.

The Japan Iron and Steel Federation collected requests from steel companies and called on a team under the control of the Minister of State for Regulatory Reform/Administrative Reform of the Cabinet Office to relax altitude regulations on drones and clarify drone licensing standards, and consulted and arranged these issues with the related organizations as government-private sector cooperation. As a result of these efforts, regulations were relaxed under certain conditions for areas that are clearly demarcated from residential areas and are subject to thoroughgoing safety and crime prevention controls. Based on this, steel companies can now make greater use of drones in inspections at flight altitudes that were previously restricted (above 150 m), inspections of wide areas by automatic operation of drones, and inspections of quays and equipment by flying on the seaside of quaywalls in steel works.

In the field of operation support systems, JFE Steel developed a system that detects the signs of equipment anomalies in the steel works based on data science technology and introduced the system at the hot strip mills at all districts, including West Japan Works and East Japan Works. At the hot strip mill at West Japan Works Kurashiki District, where this technology was introduced first in FY 2018, a trouble prevention effect equivalent to 50 hours/year or more (production volume of 30000 tons/year or more) had been confirmed. The company is promoting development of the optimum model at the company-wide level by introducing the system in common at all districts and enabling easy sharing by all districts. In this system, an enormous volume of data representing the operating condition of equipment, beginning with electrical current, pressure, flow rate, temperature and vibration data, is analyzed by big data analysis techniques, and trouble can be prevented in advance by indexing the degree of variation from the standard values during normal operation as a degree of anomaly. The system is not limited simply to trouble experienced in the past, but can also be used to prevent unexpected trouble. Moreover, mapping the changes over time in the degree of anomaly corresponding to its magnitude enables quick identification of the device or part where an anomaly has occurred, leading to appropriate maintenance action. In the future, JFE Steel is targeting further improvement of productivity through advance prevention of equipment trouble by developing this system to other types of production processes, beginning with ironmaking and steelmaking.

JFE Steel developed a system that optimizes iron ore logistics plans in the steel works. The company developed an original “stockpile layout planning system” which stores and disperses ores produced in regions that have a large effect on stable operation, for example, ores with a high frequency of blending, etc., and selects daily the pattern that will minimize the number of piles from among the huge number of possible stockpile layout patterns. As a result, it has now become possible to prepare the optimum yard operation plans over a period of several months by calculations which can be completed in around 1 minute or less. Optimization of iron ore yard operation planning by the introduction of this system has realized both a large improvement in logistics efficiency and stable operation. The system has already been introduced at the company’s West Japan Works Fukuyama District. In the future, JFE will also deploy this system for use with metallurgical coal and use at other steel works, and plans to promote optimization on a companywide basis, covering the entire raw material management process from purchasing to reclamation and discharging to the next process.

Nippon Steel has received certification as a “Digital Transformation (DX) Certified Company” under the system established by the Ministry of Economy, Trade and Industry (METI). Based on the “Act on Facilitation of Information Processing,” Japan’s national government certifies companies that have satisfied the basic requirements of the “Digital Governance Code.” Nippon Steel has adopted “Promoting DX strategies” as one of the four pillars of its Medium- to Long-term Management Plan announced on March 5, 2021. By making full use of data and digital technologies and implementing production and business process innovations, Nippon Steel aims to become a “digitally advanced company in the steel industry.”

2.5. Construction and Civil Engineering

In the construction field, Aichi Steel Corporation received the Bronze Prize of the Best Development Award (Development Award) for “Vertical Greening Cylinders,” which were installed at the Aichi Sky Expo International Convention & Exhibition Center, at the Annual Conference of the International Stainless Steel Forum (ISSF). Because the Convention & Exhibition Center is sited on the airport island where Chubu Centrair International Airport is located, stainless steel was adopted to meet the requirements of wind pressure resistance, salt damage resistance and weathering resistance. The Vertical Greening Cylinders are safe and secure, and have achieved vertical greening with a high design effect while also reducing the maintenance costs of the facility after construction.

In construction materials, many examples of application of titanium alloys were seen. Titanium alloy building materials produced by Nippon Steel were used in the preservation and repair work at the Main Hall of Kiyomizu-dera Temple in Kyoto, the roof with donors’ name boards at Kameyama Shrine in Kure City, Hiroshima Prefecture, and in the roof tiles of the Main Hall of Zojo-ji Temple, which is the chief temple of the Jodo Buddhist sect. Nippon Steel’s design-oriented titanium and titanium alloy product line received the 2021 Good Design Award sponsored by the Japan Institute of Design Promotion, which was the first time in the world this prize has been awarded for a nonferrous metal material. The company’s designable titanium alloy product line features the material properties of titanium, which include long life (more than 100 years), light weight, high strength and high environmental performance, the luster and color of the material surface, which are controlled by surface property control by processing, anodic oxidation, etc., and design by the color hue and color tone provided by the material itself.

Among environmental efforts, Nippon Steel developed a visible light response-type photocatalytic steel sheet using titanium oxide. Titanium oxide is a photocatalyst that displays a strong oxidation at the surface when irradiated with visible light, and has antiviral and antibacterial effects, as well as deodorizing and anti-allergen effects. This photocatalytic function was added to the design property, corrosion resistance, fingerprint resistance and other properties of coated steel sheets, and is also maintained in processed products, since the photocatalyst layer remains after forming. Because the coronavirus pandemic has also heightened awareness of hygiene, increased demand for this product is expected in environments where large numbers of strangers gather or cross paths.

In the civil engineering field, efforts from the environmental viewpoint were also conspicuous. In a joint project with Obayashi Corporation and Pozzolith Solutions, Nippon Steel developed geopolymer concrete with improved suitability for on-site construction, and applied this material to repairs of a retaining wall (reinforced concrete structure) in a high temperature environment at the company’s East Nippon Works Kashima Area. The main raw materials of geopolymer concrete are fly ash (coal ash) and fine blast furnace slag powder. Compared with plain concrete, geopolymer concrete has higher heat resistance, and also has excellent environmental performance, as CO2 generation in the production process is less than 1/4 that of the conventional product. On the other hand, due to its high viscosity and the fact that it hardens rapidly, it was difficult to pour in narrow spaces or use in repairs of structures with large cross sections. In this development, it was possible to satisfy both flowability suitable for use in construction work and strength when cured at room temperature by using a special admixture developed by Pozzolith Solutions. Kobe Steel and Pozzolith Solutions also jointly developed a geopolymer trial product which makes it possible to reduce CO2 emissions in the production process in comparison with ordinary concrete and mortar, has higher flowability and strength than the conventional products, and is suitable for a diverse range of applications. In addition, Kobe Steel is also promoting cost reduction by effective utilization of the alkali solution after use in the production process, fine blast furnace slag, etc. JFE Steel developed an original geopolymer with high freezing damage resistance in addition to flowability during construction and strength after curing in a joint development project with Tohoku University and Nihon University.

Nippon Steel developed a new high corrosion resistance Zn-coated steel sheet with higher corrosion resistance performance than the conventional high corrosion resistance Zn-coated steel sheets and post-coating which are generally used in the civil engineering and social infrastructure field. In a test carried out by the company, the corrosion resistance of flat parts was remarkably improved in comparison with high corrosion resistance Zn-coated steel sheets and hot-dip galvanized steel sheets (GI). Market needs for high corrosion resistance are not limited to the ceaseless need for process omission and labor-saving in projects to improve Japan’s national resilience, countermeasures for aging social infrastructure, and a decreasing working-age population. Amid demand related to renewable energy, which is rapidly increasing worldwide, application of high corrosion resistance in projects installed under particularly severe environments and various applications where materials are used in coastal zones and areas with high temperature and high humidity conditions are also expected.

2.6. Environment and Energy

2.6.1. International Negotiations and Efforts of the Japanese Government on Climate Change

According to an analysis by the International Energy Agency (IEA), in order to hold global temperature rise to less than 2°C, it will be necessary to achieve net-zero emissions of greenhouse gases (GHG) by 2070. At the nation level, Sweden became the first country to announce a goal of net-zero emissions in June 2017. In 2019, the European Union (EU) set a goal of net-zero emissions in the EU region by 2050, and Japan, China, Korea and other Asian countries successively announced net-zero emissions targets during the latter half of 2020. Although the United States formally withdrew from the Paris Agreement in November 2020, the new President Joe Biden, who took office in January 2021, signed an executive order aimed at reducing GHG emissions. The United States also returned to the Paris Agreement and has announced a goal of achieving net-zero emission gases in the economy as a whole by 2050.

Due to the coronavirus pandemic, the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) was held in Glasgow (United Kingdom) from the end of October through November 2021. The Glasgow Climate Pact declared that efforts to limit global average temperature rise to 1.5°C from the pre-Industrial Revolution level will continue. Other outcomes included an agreement on guidelines for implementing market mechanisms based on Article 6 of the Paris Agreement and the completion of the Paris Agreement rulebook.38)

In Japan, in May 2016, the government established the Plan for Global Warming Countermeasures, which is based on the Act on Promotion of Global Warming Countermeasures, in order to promote global warming countermeasures in a comprehensive and planned manner. The plan set a mid-term target of reducing GHG by 26% by FY 2030 against the baseline of FY 2013, and a long-term target of an 80% GHG reduction by 2050. In June 2019, Japan’s Cabinet Office adopted the “Long-Term Strategy under the Paris Agreement as a Growth Strategy,” which aims to achieve a “decarbonized society” as early as possible in the 2nd half of this century and reiterates calls for efforts to reduce GHG emissions by 80% by 2050.

In October 2020, then-Prime Minister Suga declared that “by 2050 Japan will aim to reduce greenhouse gas emissions to net-zero, that is, to achieve a carbon-neutral, decarbonized society”.11) In March 2021, the Cabinet approved a revision of the above-mentioned Act on Promotion of Global Warming Countermeasures, and in April, Prime Minister Suga announced that Japan would raise its GHG reduction target for FY 2030 to 46% in comparison with FY 2013. In addition to setting the ambitious goal of a 46% reduction by FY 2030, which is aligned with Japan’s target for 2050, the Prime Minister also stated that Japan will continue its efforts to meet the challenge of a higher 50% reduction. In October, the Plan for Global Warming Countermeasures was revised for the first time in 5 years, and the “Long-Term Strategy under the Paris Agreement as a Growth Strategy” was also reviewed. The Long-Term Strategy presents a long-term vision as an “ideal future model,” aiming at achieving “2050 Carbon Neutrality” under the basic concept that global warming countermeasures are not a constraint on economic growth, but rather, proactive implementation of global warming measures will result in reforms in the industrial structure and economic society that will lead to substantial growth. As the vision of each sector and the directions of countermeasures and programs in the respective sectors, in the energy sector, the Long-Term Strategy proposes “pursuing every option,” including utilizing renewable energy as Japan’s main source of energy, reducing CO2 emissions from thermal power generation, promoting CCS, CCU and carbon recycling, and realizing a hydrogen society, batteries, nuclear power, energy savings, etc., in order to promote “energy transition” and decarbonization. In the industrial sector, the proposed directions include use of CO2-free hydrogen, for example, in the challenge of “Zero-carbon steel,” as “decarbonized manufacturing,” as well as feedstock change by CCU, artificial photosynthesis and other biomass utilization. The Long-Term Strategy also advocates acceleration of green growth by discontinuous innovation, rather than simply a linear extension of conventional technologies, and the redesign of Japanese society as a sustainable, resilient economic society for achieving decarbonized society.33)

2.6.2. Efforts of the Japanese Steel Industry

JISF is continuing the “Voluntary Action Programme of the Iron and Steel Industry” which was originally implemented during the First Commitment Period of the Kyoto Protocol, promoting Commitment to a Low Carbon Society – Phase I targeting FY 2020. In anticipating the setting of Japan’s INDC (Intended Nationally Determined Contribution) for FY 2030, the JISF established Phase II of the Commitment to a Low Carbon Society in November 2014, also targeting FY 2030 and worked for achieving Phase II. The basic concepts of these voluntary activities are four pillars, consisting of the “three ecos” of “Eco Processes,” “Eco Products” and “Eco Solutions,” together with “Innovative Technology Development”.39) In FY 2020, the CO2 emissions of companies participating in the Commitment to a Low Carbon Society were 152.33 million tons on a BAU basis, and the corrected emissions (considering changes in the production composition ratio and fixing the electric power emission factor) for FY 2020 were 150.55 million tons, which was a reduction of 6.48 million tons from the baseline of FY 2005 and considerably exceeded the achievement target of 3 million tons by 3480 000 tons. The total emissions of the iron and steel industry in FY 2019 were 150 million tons.39)

Eco-Processes are designed with the aim of energy-saving and CO2 reduction in iron and steel production processes, while Eco-Products contribute to reductions in the product use stage by the supply of high performance steel products, and Eco-Solutions contribute to reductions at the global scale by the transfer and diffusion of energy-saving technologies that were developed and applied practically by the Japanese iron and steel industry. As Innovative Technology Development, the Japanese steel industry is mainly engaged in the development of an innovation steelmaking process (COURSE50) and the development of an innovation iron-making process (Ferro-coke). Table 2 shows the targets of the Carbon Neutrality Action Plan (previously: Commitment to a Low Carbon Society).39)

Table 2. Targets of JISF Carbon Neutrality Action Plan.39)
Phase IPhase II
Eco-ProcessesReduction target*2 of 5 million t-CO2 vs BAU*1Reduction target of 9 million t-CO2 vs BAU*1
Eco-ProductsContribute to reduction of approx. 34 million t-CO2 (estimated)Contribute to reduction of approx. 42 million t-CO2 (estimated)
Eco-SolutionsContribute to reduction of approx. 70 million t-CO2 (estimated)Contribute to reduction of approx. 80 million t-CO2 (estimated)
Innovative Technology DevelopmentDevelopment of Innovative Steelmaking Process (COURSE50)30% reduction of CO2 emissions in production process by reduction of iron ore by hydrogen and separation/recovery of CO2 from blast furnace gas. Start of commercial operation of No. 1 unit around 2030*3 aiming at wide adoption by around 2050, based on the timing of replacement of blast furnace-related equipment.
Development of Innovative Iron-making Process (Ferrocoke)Innovative technology development with the aim of satisfying both energy saving in the ironmaking process and expanded use of low grade raw materials by developing ferrocoke, which demonstrates the functions of accelerating/reducing the temperature of the reduction reaction in the blast furnace, together with its operating technology.
*1  BAU: Abbreviation of “Business as Usual”; in these target values, it means the amount of CO2 emission assuming crude steel production in these respective phases, against the baseline year of FY 2005.

*2  Of the 5 million ton-CO2 reduction target, while continuing the commitment to a 3 million ton-CO2 reduction based on energy saving and other self-help activities, for waste plastic, etc., only the amount equivalent to the increased quantity of collected wastes, etc. against the FY 2005 baseline is counted as an actual reduction.

*3  Preconditioned on creation of infrastructure for CO2 storage and securing economic rationality for commercial equipment.

In addition to the above-mentioned Phase II efforts, in November 2018, the JISF established the new “JISF Long-term vision for climate change mitigation” to realize “Zero-carbon steel,” with a view to the long-term future beyond 2030 (extending as far as 2100), in a form which is consistent with “Japan’s Long-Term Strategy under the Paris Agreement as a Growth Strategy.” Trial calculations were made for CO2 emissions in the year 2100 for 6 long-term climate mitigation scenarios for the steel industry, ranging from “business-as-usual” (BAU) to the development and application of “Super-innovative technologies.” In the case of “Innovative Technology Development,” where “Innovative technologies” such as COURSE50, Ferro-coke, etc. are applied practically, a 10% reduction of CO2 emissions in the natural resources route is expected (excluding the effect of CO2 storage). However, it is not possible to achieve the long-term level targeted by the Paris Agreement by these efforts alone, indicating that “Super-innovative technologies” that go beyond those technologies will be necessary.12)

In February of 2021, the JISF announced the “Basic Policy of the Japan steel industry on 2050 Carbon Neutrality aimed by the Japanese government,” which states that “the Japanese steel industry supports Japan’s ambitious policy of achieving carbon neutrality by 2050 and it will aggressively take on the challenge to realize Zero-carbon steel with the aim of contributing to the Japanese government policy.” Concretely, the steel industry will continue its contribution through technologies and products in the form of “Eco-solutions” and “Eco-products,” and its initiatives to reduce CO2 emissions in the steel production processes by “Eco-processes” and “Innovative Technology Development,” but because the realization of “Zero-carbon Steel” is an extremely difficult challenge, the industry will also “explore multiple pathways by employing every possible means,” including current ongoing efforts to drastically reduce CO2 emissions from the blast furnace utilizing COURSE50 and Ferro-coke in combination with CCUS (Carbon dioxide Capture, Utilization and Storage), the challenge of developing “Super-innovative technologies” such as hydrogen reduction iron-making, etc., expanded use of scrap, recovery of unused low- to medium-temperature waste heat and use of biomass. The indispensable external conditions required for achieving these goals include stable, large-volume supplies of zero-emission hydrogen and zero-emission electric power and economically-rational CCUS. In addition, the industry requests that the government establish a national strategy for decarbonization, design and develop a promotion system and institutional design, and provide financial support.40)

In October 2021, the Ministry of Economy, Trade and Industry (METI) established a “Technology Roadmap for ‘Transition Finance’ in Iron and Steel Sector” (hereinafter, Technology Roadmap”) for decarbonization of the steel industry. This Technology Roadmap presents “technologies” that are assumed to be necessary, based on scientific grounds, for realizing 2050 Carbon Neutral in the iron and steel sector. Among those technologies, in addition to reliable low carbon technologies such as energy saving and high efficiency technologies that can be utilized in their current condition, future innovative technologies are also presented, together with the background and time axis, referring to various government policies in Japan and international scenarios. Figure 5 shows the roadmap of these technologies.41)

Fig. 5.

Technology roadmap for decarbonization of iron and steel industry.41) (Online version in color.)

During FY 2020–2021, Nippon Steel, JFE Steel, Kobe Steel and JRCM carried out a NEDO Feasibility Study Project called “Development of Zero-carbon steel” (NEDO: New Energy and Industrial Technology Development Organization), in which the issues for the development and practical application of technologies for hydrogen reduction iron-making were identified, and prepared a research and development roadmap for realizing “Zero-Carbon Steel.” The four partners jointly proposed the development of a hydrogen reduction technology for use in the blast furnace and the development of a direct hydrogen reduction technology, in which low grade iron ore is reduced using only hydrogen, in the publicly-offered NEDO project “Green Innovation Fund Project/Hydrogen Utilization in Iron and Steelmaking Processes,” and were selected in December 2021. The project is scheduled to have a 10-year period of FY 2021–2030 and will have a total budget of ¥193.5 billion. The research and development items are shown in Table 3.

Table 3. Research and development items in “Hydrogen Utilization in Iron and Steelmaking Processes Projects”.
R&D ItemTargetImplementing organization
Development of hydrogen reduction technology utilizing blast furnaceDevelopment of hydrogen reduction technology, etc. using hydrogen available in steel worksBy 2030, implement technologies that reduce CO2 emissions from the iron and steelmaking process by at least 30% by hydrogen reduction technology in the blast furnace using hydrogen available in the steel works, CO2 separation and recovery technologies (CCS), etc.Nippon Steel, JFE Steel, Kobe Steel, JRCM
Development of low carbon technology, etc. using externally-sourced hydrogen and CO2 contained in blast furnace off-gasBy 2030, perform demonstration tests of technology that realizes a CO emission reduction of at least 50% from the ironmaking process in a medium-scale test blast furnace.Nippon Steel, JFE Steel, Kobe Steel, JRCM
Development of direct hydrogen reduction technology for reducing low-grade iron ore using only hydrogenDevelopment of direct hydrogen reduction technologyBy 2030, demonstrate a technology that achieves a CO2 reduction of at least 50% compared to the current blast furnace process in a medium-scale direct reduction furnace by direct reduction of low-grade iron ore by hydrogen.Nippon Steel, JFE Steel, JRCM
Development of impurity removal technology for electric furnaces utilizing direct-reduced steelBy 2030, demonstrate a technology that controls the concentration of impurities (components that affect products) to the same level as the blast furnace process in a large-scale test furnace in order to produce high-grade steel that can be used in automotive outer panels and similar products in an integrated hydrogen direct reduction–electric furnace process using low-grade iron ore.Nippon Steel, JFE Steel, Kobe Steel, JRCM

The special steel makers, Daido Steel Co., Ltd., Aichi Steel Corporation, Sanyo Special Steel Co. and others which produce steel by the electric arc furnace route, have less CO2 emissions than the integrated steel makers using the blast furnace route, but because the CO2 emissions from electric power and city gas account for 80% to 90% of their total emissions, these companies are focusing their efforts mainly on decarbonization of fuels and electric power.

2.6.3. Efforts of Individual Companies

Based on the JISF’s “Basic Policy of the Japan steel industry on 2050 Carbon Neutrality aimed by the Japanese government,” during 2021, Japan’s three integrated steel makers announced respective visions aimed at realizing carbon neutrality by 2050, and all three companies have positioned this as a top priority issue for management. Nippon Steel established an “Environmental Brand Mark” to represent the company’s activities prioritizing “Zero-carbon steel,” and is actively communicating its environmental management measures, and particularly its efforts in connection with Zero-carbon steel, in Japan and overseas by using this Environmental Brand Mark. JFE Steel enhanced its internal management structure for promoting carbon neutrality by establishing new specialized departments. These moves included the establishment of a “Carbon Recycling Development Department” to promote the development of elemental technologies for the carbon recycling blast furnace and CCU methanol synthesis, and a “Green Raw Materials Section” to develop raw materials suitable for the direct reduction method and secure external iron sources that contribute to CO2 reduction. JFE Steel also established a “Carbon Neutral Advancement Committee,” which is positioned directly under the company’s Management Committee, to enable unified discussion and decision-making and quick, efficient implementation of major issues of organizations and projects related to carbon neutrality, such as the development of new steel making processes, procurement of green raw materials and setting of mid- and long-term targets, to further accelerate efforts toward the achievement of carbon neutrality.

Kobe Steel integrated a direct-reduced iron iron-making technology using natural gas in Engineering Business and a blast furnace operation technology in Iron & Steel Business, and demonstrated that this integrated technology can substantially reduce CO2 emissions in the blast furnace process. A verification test was conducted over a period of about 1 month in October 2020 with a large-scale blast furnace (4844 m3) at the company’s Kakogawa Works. In the verification test, a large amount of Hot Briquette Iron (hereinafter HBI) obtained by the direct-reduced iron iron-making process using natural gas was charged into the blast furnace, and it was confirmed that the reducing agent ratio, which determines the amount of CO2 emissions from the blast furnace, can be reduced stably from 518 kg/t-molten pig iron to 415 kg/t-molten pig iron (equivalent to a CO2 emission reduction of approximately 20% from the conventional process). Kobe Steel also achieved the world’s lowest coke ratio (239 kg/t-molten pig iron), establishing the outlook for a solution that can reduce CO2 at a low additional cost by a CO2 reduction measure which utilizes existing technology.

A consortium consisting of the American company Midrex Technologies, Inc., which is a wholly-owned subsidiary of Kobe Steel, and Paul Wurth S.A., the licensor, received an order for a HBI (Hot Briquette Iron) production plant using natural gas from the Russian company Mikhailovsky HBI LLC. The plant will be newly constructed by Mikhailovsky in Zheleznogorsk in the Kursk region of Russia, and will have the world’s largest HBI production capacity, at 2.08 million t/y. The features of the plant include reduction of both energy consumption and environmental loads, and the design also envisions a complete transition to hydrogen as the reducing agent in the future. Operation is scheduled to start in the first half of 2024. The same consortium also completed a plant with a production capacity of 2.5 million t/y, which was ordered in 2016 for the Bellara steel complex of Algerian Qatari Steel in Algeria, and charging of direct reduced iron (DRI) to that company’s electric arc furnaces has begun. Using DRI produced by the new plant, the steel works plans to produce approximately 2 million t/y of steel bars and wire rods by melting the DRI in electric arc furnaces at the works, followed by continuous casting and rolling. As features of this equipment, this process has excellent energy saving performance and productivity, as the DRI plant and the electric arc furnaces are connected, making it possible to transport the DRI to the electric arc furnace at the same temperature as when it was discharged from the DRI plant. MIDREX is the world’s leader in environment-friendly iron-making processes using natural gas, with a global share of about 80% (about 60% for all reduced iron), and more than 90 plants are in operation worldwide, contributing to the realization of a green society with carbon neutrality in the world as a whole.

Nippon Steel, JFE Steel, Nippon Kaiji Kyokai (ClassNK) and other members of the “Ship Carbon Recycling Working Group (WG)” of Japan’s Carbon Capture & Reuse (CCR) Study Group confirmed that carbon recycled methane produced by methanation technology can be recognized as a zero-emission ship fuel. At coastal steel works, where virtually all raw material imports and shipments of steel products to Japanese and overseas markets are transported by ships, it is possible to contribute to reduction of CO2 emissions in the total iron and steel supply chain by separation and capture of the CO2 discharged from the steel works, and use of the methane synthesized from this CO2 as a ship fuel.

In the “NEDO Feasibility Study Program/Uncharted Territory Challenge 2050,” Nippon Steel, Osaka City University and Tohoku University developed the world’s first “green” catalytic process for direct synthesis of aliphatic polycarbonate diols from atmospheric pressure CO2 and diols without using dehydrating agents. To enable reaction of atmospheric pressure CO2 discharged from blast furnaces and other sources as a feedstock, the group developed a solid catalyst system that makes it possible to synthesize polymers from CO2 without using a dehydrating agent, which must be recovered and reused. The group discovered that a dehydrating agent is not necessary if CO2 is blown at atmospheric pressure and the water content is removed by evaporation utilizing the difference in the boiling points of the chemical product or diol and water, and a cerium oxide (CeO2) catalyst has the highest activity among the metal oxides studied.

Nippon Steel also participated in the “Hydrogen Utilization Study Group in Chubu” in order to study the construction of a supply chain to achieve a stable, cost-effective supply of large quantities of hydrogen to realize Zero-carbon steel, and the implementation and maintenance of the infrastructure necessary for that purpose. In activities to date, the group has made trial calculations of the potential demand for hydrogen in various industrial sectors in the Chubu region, verified the supply chain from the receipt of hydrogen from overseas sources to users in Japan, and verified the switchable costs of hydrogen. Recently, the results of the study where complied in ”Results of study on potential large-scale use of hydrogen toward 2030 in Chubu region and initiatives going forward.” In the future, policy recommendations will be made in cooperation with other industries through this group.

JFE Steel signed a memorandum of understanding (MOU) on initiatives to achieve low carbon in the steel manufacturing process with BHP. The two companies will conduct joint research using Australian coal, including research on raw material processing technologies for the blast furnace process and production of direct-reduced iron, to promote the development of effective technologies for reducing CO2 emissions. Through this joint research, the companies aim to establish an innovative technology which will achieve a large reduction in CO2 emissions in the total supply chain of the iron and steel industry. On the other hand, since December of 2018, JFE Steel had been conducting a feasibility study on the development of a natural gas-fired thermal power plant with Chugoku Electric Power Co., Inc. and Chiba Power Corporation (a joint venture of JFE Steel and Chugoku Electric Power), but because this project was judged to lack feasibility, the study was discontinued and Chiba Power was dissolved.

Nippon Steel, together with Japan CCS Co., Ltd., the Engineering Advancement Association of Japan and Itochu Corporation, submitted a joint application for the “Research, Development and Demonstration of CCUS Technology/Large-scale CCUS demonstration in Tomakomai/Demonstration test of CO2 transportation,” a publicly-offered project of NEDO, and were awarded the contract. This demonstration project involves research and development of transportation technology for long distance, large volume, low-cost transportation of CO2 on a scale of 1 million t/y from CO2 supplying areas to use and storage locations with the aim of establishing a ship transportation technology for liquefied CO2 through demonstration tests and related studies. Concretely, Nippon Steel and Itochu will carry out a feasibility study on marine transportation for the purpose of CCUS, and will study business models for CO2 transportation from various large volume emission sources, including steel works, toward the realization of a CO2 capture and transportation business.

Nippon Steel, together with Nippon Steel Chemical & Material Co., Ltd. and JRCM, jointly applied for the “NEDO Feasibility Study Program/New Energy and Environmental Technology Feasibility Study Program/Technology Development for Supply Chain Construction Pursuing Blue Carbon (Carbon Storage in Marine Ecosystems)” and were selected. The aim of this project is to use coastal steel works to produce carbon-neutral marine biomass (seaweed), and construct a new supply chain of “local production of biomass for local consumption” for use of marine biomass in the steel making process. The project will study the use of marine biomass as a carbon source (charcoal and carbon material) for use in the steel manufacturing process. For marine biomass production, the group will examine active breeding of seaweed by utilizing techniques cultivated in seaweed bed formation using iron and steel slag generated in the steel works. Since this study of marine biomass as a carbon-neutral material is the first of its type anywhere in the world, the aim of this project is to create a path to the demonstration stage by developing the above-mentioned elemental technologies and conducting a feasibility study, including total economy and the CO2 reduction effect.

JFE Steel applied for the NEDO commissioned project “Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation/Development of Technologies for CO2 Reduction and Utilization” (project period: FY 2021 to FY 2024), and the following two items were adopted: 1) In “Development of Optimum System for Methanol Synthesis using CO2” (in collaboration with the Research Institute of Innovative Technology for the Earth (“RITE”), the aim is to advance the development of technology for low cost CO2 separation by the pressure swing adsorption (PSA) method and technology for an H2O membrane reactor that enables efficient synthesis of methanol from CO2, and to construct the optimal total system including the water pretreatment equipment and recycling of the water produced in the methanol synthesis reaction. Since the blast furnace gas in a steel works has the distinctive features of having a relatively high CO2 concentration and containing CO and H2 as secondary components, the aim is to achieve low cost, high efficiency methanol synthesis by making the maximum use of these features. 2) In “Research and Development of Innovative CO2 Fixing Technology through Quick, Large Quantity Carbonation of Steel Slag (in collaboration with Ehime University), JFE Steel will develop an innovative technology for fixing and carbonation of large quantities of CO2 in a short time in the calcium oxide component of steelmaking slag, which is formed as a byproduct of steel production, by blowing the CO2 emitted by coal-using industries into high-temperature steelmaking slag. At the same time, energy efficiency will be improved by recovering the heat of the gas after CO2 fixation, and the amount of CO2 fixation and reduction of CO2 will be maximized in the total process. The carbonated steelmaking slag will then be used as roadbed material, which is an application with large demand.

In the same NEDO project, Kobe Steel and Kobelco Eco-Solutions Co., Ltd. jointly applied for “Development of CO2 Fixation Process Utilizing Steelmaking Slag” and were selected. Almost 100% of iron and steel slag is effectively utilized in products for civil engineering and construction materials, and a large number of those products have been designated as “Designated procurement items” for public works projects under Japan’s Green Purchasing Law (official name: “Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities”), as products that reduce loads on the environment. Because Ca and other alkali components of iron and steel slag react easily with CO2, iron and steel slag has also attracted attention as a useful material for CO2 fixation. However, it is important to improve the economy of technologies for fixing CO2 in iron and steel slag by enhancing the use value of carbonate, which is the chemical product after CO2 fixation. Since iron and steel slag also contains impurities other than alkali components, increasing the purity of the carbonate is a challenge for enhancing its use value. Among the various types of iron and steel slag, steelmaking slag has a particularly high content of alkali components. Therefore, Kobe Steel is promoting the development of a CO2 fixation technology focusing on steelmaking slag, with the aim of further contributing to reduction of environmental loads.

JFE Steel and Hiroshima University established a “Joint Research Course (Phase 2)” at Hiroshima University with the aim of achieving the Sustainable Development Goals (SDGs) and contributing to society. JFE Steel and Hiroshima University originally signed a comprehensive agreement in 2011 and were jointly engaged in research and development on the use of iron and steel slags, which are byproducts of the steel manufacturing process, as materials for improvement of marine environments. Furthermore, the “Joint Research Course (Phase 1)” was launched in 2018, and the scope of research was newly expanded to include the fertilizer field for use on land. JFE Steel and Hiroshima University have promoted development and verification of the effective of iron and steel slag materials in both fields. Through these efforts, the two organizations aim to accelerate practical application of effective utilization technologies for iron and steel slag, which are recyclable resources, in order to achieve social implementation at an early date.

Nippon Steel, as a representative corporation, will conduct experiments on the use of steel pipe piles and ground improvement of super weak ground in a demonstration experiment sponsored by the Japan Association for the 2025 World Exposition (Expo 2025 Osaka) and the Osaka Chamber of Commerce and Industry. Ground improvement is a technique performed using a calcia improvement agent, which is prepared by composition adjustment with iron and steel slag as raw materials and particle size adjustment, in order to improve the strength of mixed soft dredging soil. Aiming at effective utilization of steelmaking slag, which contains alkali components, steelmaking slag will be used as a material for remediation of the marine environment.

JFE Chemical Corporation started operation at a plant which manufactures negative electrode materials for lithium batteries of Wuhai Baojie New Energy Materials Co., Ltd., a joint venture established with funding by JFE Chemical and Baowu Carbon Materials & Technology Co., Ltd., a subsidiary of the China Baowu Steel Group Corporation Limited. China has now become the world’s largest market for electric vehicles (EVs), and increases in EVs and other forms of electrified vehicles (xEVs) are also expected in the future. Responding to demand for negative electrode materials for use in lithium ion batteries, centering on products for xEVs and stationary storage batteries in China, the company is targeting full-scale sales of negative electrode materials (production capacity: 10000 t/y) from the second half of 2022. Through this joint venture, JFE Chemical will contribute to realizing a sustainable society with low environmental impacts by gaining a new production base for needle coke-based negative electrode materials for lithium ion batteries.

Nippon Steel acquired the “EcoLeaf” Environmental Label certified by the Sustainable Management Promotion Organization (SuMPO) beginning with roll formed H-shapes in December 2019, and has now received certification for a total of 21 products, including large section size fixed outer dimension H-shapes, tinplate, tin-free steel, laminated steel sheets, oil country tubular goods (OCTGs), line pipes, welded lightweight H-shapes and plates for building structural use, followed by steel bars and wire rod products in February 2022. In all cases, acquisition of EcoLeaf certification for these product lines was the first in Japan. The EcoLeaf program is an international certification system that discloses quantitative environmental information considering the total life cycle of products from extraction of resources through manufacturing, distribution and use to disposal or recycling by using the LCA (Life Cycle Assessment) technique. Customers can objectively evaluate the environmental loads in the life cycle of products they use based on this information. Disclosure of the environmental performance of iron and steel products that are distinguished by high recyclability and low environmental loads, which is also consistent with the “Sustainable Development Goals (SDGs),” is being actively promoted.

JFE Steel and Nippon Express jointly received the Special Prize of the Logistics Environment Grand Award (sponsored by the Japan Association for Logistics and Transport). In transportation of steel strip coils from its West Japan Works Fukuyama District to JFE Logistics Corporation’s Tokyo Distribution Center, JFE Steel uses special ships in which the coils are loaded on ships with a pallet, but because narrow width and wide width coils cannot be loaded stably on pallets, these products had been shipped overland by trailer over a transportation distance of 734 km. Therefore, JFE established a transportation method that prevents trouble such as products falling, etc. during voyages by using a dedicated frame which enables stable lashing of coils, and switched the means of transport to regularly-scheduled ferries between the Port of Uno (Tamano City, Okayama Prefecture) and Chiba Central Port (Chiba, Chiba Prefecture), thereby shortening the total overland transportation distance to only 87 km (Fukuyama-Uno 63 km + Chiba Central Port-Tokyo Distribution Center 24 km). This effort not only shortened the actual driving and standby time of trailer drivers by 76%, but was also highly evaluated for succeeding in reducing CO2 emissions during transportation by 22%.

Aichi Steel, together with Aichi Logistics Co., Ltd., jointly received the “Green Logistics Partnership Conference Special Award” in the “Excellent Green Logistics Program” of the “FY 2021 Green Logistics Partnership Conference.” In this case, the two companies grappled with visualization of routes with low load factors and carried out a consolidation of logistics in the total distribution network in order to cope with shortages of personnel and other challenges facing the shipping business. As a result, it was possible to improve the load factor by 20% and greatly reduce the number of trips, thereby achieving a CO2 emission reduction of 210 t/y. This accomplishment was highly evaluated as a case of an environmental load reduction activity by consolidation of logistics across distribution channels.

3. Technology Trade and Development

3.1. Technology Trade

Figure 6 shows the transition of technology trade in the steel industry up to FY 2020.42) Payments received for technology exports in FY2020 decreased to the level of FY2018, as the effect of a large increase in exports to North America was no longer a factor in FY2019. Payments for technology imports decreased substantially from the previous year, and the payments of \500 million in FY 2020 were the smallest amount in the past 10 years.

Fig. 6.

Balance of technology trade of steel.42)

3.2. Research Expenditures and Number of Researchers

The following three items were arranged using the data in Table 3 “Research Activities in Companies” of the statistical tables in the outline of results in the Statistical Survey of Researches in Japan published by the Statistic Bureau, Ministry of Internal Affairs and Communications. The results are shown in Figs. 7, 8, 9.43)

Fig. 7.

Trend of the ratio of sales to research expenditure. (Online version in color.)

Fig. 8.

Trend of the number of researchers per 10000 employees.43)

Fig. 9.

Trend of R&D expenditure per researcher (10 M yen/person).43)

[Ratio of Research Expenditures to Sales] In comparison with the previous fiscal year, this item was flat for all industries but decreased for the steel industry. Although there have been no large changes in the ratio of research expenditures in whole industries since FY 2016, the change in this ratio was comparatively large in the steel industry. In FY 2020, the steel industry recorded a decrease of approximately 0.1 point from the previous fiscal year, which is equivalent to a decrease in research expenditures of about ¥10 billion/year.

[Number of Regular Researchers per 10000 Employees] In whole industries, this item changed to an increase in FY 2017, but has decreased for two consecutive years since FY 2019. In the steel industry, this index showed an increasing tendency until FY 2011, when it reached its highest value, but decreased in FY 2012. Although it had trended on the same level thereafter, there was a comparatively large decrease in FY 2020, and the number of regular researchers per 10000 employees was 321.

[Research Expenditures per Regular Researcher] The results for whole industries have maintained a roughly constant level for the past four or five years, but decreased slightly in FY 2020. In the steel industry, expenditures per researcher decreased in comparison with the previous fiscal year, but were on the highest level (36 million yen/person) in approximately the past 20 years since FY 2014.

3.3. Trends in Research and Development Utilizing Public Funds

Among iron and steel-related technology development projects, the main continuing projects were “Development of Zero-Carbon Steel” (FY 2020–2021, managing organization: NEDO), “Innovative and Integrated High-Grade Steel Making Processes Coping with Inevitable Degradation of Iron Ore” and “Innovative Energy-Saving Material Processing Technology based on Thermal Science” (both FY 2019–2021, managing organization: NEDO), “Environmentally Harmonized Steelmaking Process Technology Development – (STEP2)”, “Research, Development and Demonstration of CCUS Technology” and “Development of Technologies for Hydrogen Refueling Stations” (both 2018–2022, managing organization: NEDO), “Project for Super-Rapid Development Infrastructure Technologies for Super-Advanced Materials” (FY 2016–2021, managing organization: NEDO), “Research and Development of Innovative Structural Materials” by METI/NEDO (FY 2013–2022, managing organization: NEDO) and “Materials Science on Mille-Feuille Structure - Development of Next-Generation Structural Materials Guided by a New Strengthening Principle” (FY 2018–2022). New projects were “Green Innovation Fund Program/Hydrogen Utilization in Iron and Steelmaking Processes” (FY 2021–2030, managing organization: NEDO) and “Research and Development of High Performance Steel Materials for Sustainable Steel Structure Infrastructure and Use Technologies” (FY 2021, managing organization: NEDO). Table 4 shows the main projects on iron and steel-related research and technology development topics being carried out with public funds. Many of these projects are in the fields of processes, environment/energy and materials development.

Table 4. Examples of themes utilizing public funds in steel industry.
ClassName of projectManaging organizationStart (FY)End (FY)
ProcessesEnvironmentally Harmonized Steelmaking Process Technology Development (STEP2)NEDO20182022
Innovative and Integrated High-Grade Steel Making Processes Coping with Inevitable Degradation of Iron OreNEDO20192021
Innovative Energy-Saving Material Processing Technology based on Thermal ScienceNEDO20192021
Development of Zero-Carbon SteelNEDO20202021
Green Innovation Fund Project / Hydrogen Utilization in Iron and Steelmaking ProcessesNEDO20212030
Element technologiesElement Strategy Initiative: To Form Core Research Centers - Structural MaterialsMEXT20122021
Development of Technologies for Carbon Recycling and Next-Generation Thermal Power GenerationNEDO20162025
Research, Development and Demonstration of CCS TechnologyNEDO20182026
ProductsResearch and Development of Innovative Structural MaterialsNEDO20132022
Development of Technologies for Hydrogen Refueling StationsNEDO20182022
Research and Development of High Performance Steel Materials for Sustainable Steel Structure Infrastructure and Use TechnologiesNEDO20212021
OthersProject for Super-Rapid Development Infrastructure Technologies for Super-Advanced MaterialsNEDO20162021
Development of Technologies for Hydrogen Refueling StationsNEDO20182022
Materials Science on Mille-Feuille Structure (MFS) - Development of Next-Generation Structural Materials Guided by a New Strengthen Principle -MEXT20182022
FY2021 “Subsidy for Nuclear Energy Industry Infrastructure Strengthning” related BusinessesEco Future Fund20212022

NEDO: New Energy and Industrial Technology Development Organization

MEXT: Ministry of Education, Culture, Sports, Science and Technology

4. Development of Human Resources in Technical Fields

The Iron and Steel Institute of Japan (ISIJ) conducts corporate human resources training programs (Iron and Steel Engineering Seminars, Iron and Steel Engineering Seminar special courses, Advanced Iron and Steel Seminars) and human resources training programs for students on an ongoing basis to develop cross-industry human resources.

As human resources development programs for students, in addition to the “Student Iron and Steel Seminars” which the ISIJ has conducted for many years, the ISIJ took over the Industry-Academic Partnership for Human Resources Development in FY 2011 and conducts the “Introduction to Iron and Steel Engineering Seminar” for master’s course students and the “Experiential Seminar on Advanced Iron and Steel” for undergraduates. However, continuing from the previous fiscal year, both corporate human resources training programs and programs for students were seriously affected by the coronavirus pandemic in FY 2021.

Among human resources training programs for students, all activities were cancelled in the “Experiential Seminar on Advanced Iron and Steel” program, which focuses mainly on plant tours, because it was not possible to make arrangements to receive the participants at company’s steel works, and the possibility of infection during the itinerary was also a concern. However, the “Introduction to Iron and Steel Engineering Seminar” and the “Student Iron and Steel Seminars” were held online, as these seminars center on lectures and discussion, and a total of 45 students participated.

In the programs for corporate human resources, the Iron and Steel Engineering Seminars and Advanced Iron and Steel Seminars were all cancelled, as these are camp-based seminar. Five courses in the Iron and Steel Engineering Seminar special course program were held on-line with a total of 64 participants.

Among other activities, “University Special Lectures by Top Management” by top managers of steel companies were held at 11 universities, and “Special Lectures on Iron and Steel Technology” by senior executive of the ISIJ were held at 9 universities. These lecture activities attracted a total audience of approximately 1900 students.

5. Technology Creation Activities in the ISIJ

The ISIJ conducts activities in which it surveys technical information in connection with iron and steel production technologies, identifies issues for technology development and carries out activities aimed at solving those problems, centering on the Technical Committees and Interdisciplinary Technical Committees, which belong to the ISIJ’s Technical Society.

In addition, the Committee for Global Warming Mitigation Technologies for the Steel Industry (abbreviation: CGS) was established in April 2018 and conducted a wide-ranging study on technologies contributing to reduction of CO2 emissions from the iron and steel industry. The CGS concluded its activities at the end of FY 2021 after summarizing its activities to date. Taking over the recommendations of the CGS, in FY2022, a new “Committee on Carbon-Neutral Steel” was established to clarify the efforts which should be addressed by the ISIJ as a whole, not limited to the Technical Society, but also including the Academic Division.

5.1. Technical Committees

Technical Committees, which promote activities related to iron and steel production in their designated fields, hold regular Committee Meetings where key issues at the present time are energetically discussed as common and important topics (Table 5). Technical Committee activities in FY 2021 were seriously affected by the coronavirus pandemics, as in FY 2020, but in FY 2021, the number of Committees holding regular meetings online increased, and moves to find continuity in platforms for information exchange by various new approaches could be seen, in spite of these limiting circumstances.

Table 5. Main organization in technology creation activities of Production Technology Division.
ClassContent of activities
Technical Committees• Object:Designated fields related to iron and steel production as a whole.
• Classification of committees:Ironmaking, Coke, Steelmaking, Electric Arc Furnace, Special Steel, Refractories, Heavy Plate, Hot Strip, Cold Strip, Coated Steel Sheet, Large Section, Bar and Wire Rod Rolling, Steel Pipe & Tubes, Rolling Theory, Heat Economy Technology, Control Technology, Plant Engineering, Quality Control, and Analysis Technology (total of 19 Technical Committees).
• Participants:Steel and steel related company engineers and researchers, staff of universities, etc.
• Purpose of activities:Technical exchanges related to iron and steel production for the purpose of improvement of production site technology levels, identification and solution of technical of technical problems in various fields, training of young engineers, improvement of technology by industry-academic collaboration, and trend survey of overseas technologies.
• Activities:Committee meetings (1–2 times/year), meetings of Interdisciplinary Technical Committees handling designated topics, lecture meetings for training of young personnel and various other types of plans, etc.
Interdisciplinary Technical Committees• Object:Interdisciplinary or inter-industry technical subjects spanning various fields of the iron and steel production process.
• Classification of committees:Interdisciplinary Technical Committees on “Control of inhomogeneity to enhance mechanical properties of modern structural steels,” “Desirable Steel Materials for Automobiles,” “Materials for Pressure Vessels” and “Structural steels and their related technologies for steel structures” (total of 4 Interdisciplinary Technical Committees).
• Content of activities:Technical study for technological directions and problem-solving, surveys and other types of research, information exchanges with other associations, etc.

In a large recovery from FY 2020, when only 405 persons participated, a total of 1610 persons participated during the year, including those participating via the internet. This number also included 39 participating researchers from universities, etc., compared to zero in FY 2020.

Moves to resume various training programs for young human resources and activities of the Technical Committees on their respective topics could also be seen, but it was still difficult to conduct activities related to international exchanges.

5.2. Interdisciplinary Technical Committees

Interdisciplinary Technical Committees (Table 5) study interdisciplinary and inter-industry issues, and 4 committees are active. Continuing from FY 2021, these activities were also affected by the coronavirus pandemic, and as a result, meetings, research presentations and other committee activities were conducted via the internet.

In the Interdisciplinary Technical Committee “Control of inhomogeneity to enhance mechanical properties of modern structural steels,” it was not possible to hold meetings as scheduled in FY 2020 due to the coronavirus pandemics. Therefore, the activity period of the report that was originally scheduled to be completed in FY 2021 was extended by 1 year, and the report is now to be completed during FY 2022.

In the Interdisciplinary Technical Committee “Desirable steel materials for automobiles,” the previously-scheduled joint symposium of the Society of Automotive Engineers of Japan (JSAE), the Japan Institute of Metals and Materials and the ISIJ was held online, and issues related to hydrogen embrittlement of special steels were discussed with the JSAE.

In the Interdisciplinary Technical Committee “Materials for Pressure Vessels,” the “Working Group on Study of Standards for Steel Materials” and the “Working Group on Advanced Heat-Resistant Steels” continued their respective activities, and based on its activities up to FY 2020, the “Working Group on Advanced Heat-Resistant Steels” began study in Phase II.

The Interdisciplinary Technical Committee “Structural Steels and their Related Technologies for Steel Structures” began its activities from FY 2021. This committee mainly studies issues related to new construction, expansion and improvement measures, design and execution, and operation and maintenance (O&M). In particular, the committee held lectures focusing on issues related to the Soil Contamination Countermeasures Act.

5.3. Research Grants and Research Groups

The system related to research grants of the ISIJ is shown in Table 6. In “Grants for Promotion of Iron and Steel Research,” 28 new projects (including 12 by young researchers) were selected as awardees to begin receiving grants in FY 2021. Together with 35 projects that began in FY 2020, a total of 63 projects based on grant topics were carried out in FY 2021.

Table 6. Research grant system of ISIJ.
ClassContent of activities
Grants for Promotion of Iron and Steel Research• Purpose:Activation of iron and steel research, support for basic and infrastructural research related to iron and steel, training of young researchers
• Application process:Selected each year based on public invitation; grant period is 2 years.
• Features:Object is individual researchers, establishes a framework for young researchers.
• Number of projects:63 (number of aid recipients in FY 2021).
Research Groups• Purpose:Activation of iron and steel research, creation of foundations for technical innovation, creation of human research network by industry-academic collaboration.
• Application process:Selected each year based on proposals, public invitation; in principle, period of activity is 3 years.
• Features:Establishes “Research Group I,” which treats “seed”-led basic/advanced themes from universities and other research institutions, and “Research Group II,” which treats “need”-led applied/industrial themes from iron and steel companies. Participation of industry and academia.
• Number of projects:19 (number in progress at end of December, 2021).
ISIJ Research Projects• Purpose:Solution of technical problems of iron and steel industry, research on areas which are both important and basic, development to National Projects, etc.
• Application process:Selected by public invitation; in principle, period of activity is 3 years.
• Features:Research and development projects of key technologies contribute to industrial applications based on needs of steel industries. Participation of industry and academia.
• Number of projects:4 (number in progress as of end of December, 2021)

In FY 2021, 19 Research Groups were active, including 5 which completed their activities during the year. The activity periods of 12 Research Groups which were not able to conduct activities as scheduled due to the coronavirus pandemics were extended by 1 year. Among Research Groups that began new activities during FY 2021, 4 projects involved Research Group I (“Seeds type”) activities. The Research Groups that will begin work from FY 2022 include five groups in Research Group I and two groups in Research Group II (“Needs” type).

In ISIJ Research Projects, two new activities began from FY 2021, and no new projects were selected to begin from FY 2022.

References
 
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