Steel Glossary K - O
 Everything You Always Wanted to Know About Steel…But
Were Afraid to Ask - December 2004
Michelle Applebaum Research provides this collection
of terms and concepts used in our research, company and industry
reports, and other steel publications as an invaluable tool for those in
the steel industry.
Reproduction of all or part of this glossary is
specifically prohibited without the written consent of the author.
L
Ladle 4
A “bucket” lined with refractory (heat
resistant) bricks, used to transport molten steel from process to
process in a steel plant.
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Ladle Metallurgy Furnace (LMF)
An intermediate steel processing unit that further
refines the chemistry and temperature of molten steel while it is still
in the ladle. The ladle metallurgy step comes after the steel is
melted and refined in the electric arc or basic oxygen furnace, but
before the steel is sent to the continuous caster.
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Lance 4
A long metallic tube through which oxygen is blown into
the BOS vessel under high pressure.
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Lead-Time 1
Delivery time for an item of inventory to be moved from
a source location to a destination via a specific route. Detail is
specific to the level of the location. Also the time to produce a
customer’s order from order placement to shipment.
****
Legacy Costs
Any costs that are associated with prior
operations. Employee liabilities (pensions and health care
benefits) and environmental cleanup costs usually are included under
this moniker.
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Leveling 1
The process by which a leveling machine flattens metal
strip, coil, or sheets by bending it up and down over the interrupting
arcs of upper and lower sets of long, slender work rolls. Machines
generally employ 17, 19, or 21 relatively small diameter rolls whose
deflection under load is controlled by additional back-up rollers and a
rigid frame.
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Life Cycle Costing
An accounting method of costing where expenses are
allocated over the life of the product. Life cycle costs are often
lower for stainless steel than for alternatives despite a higher initial
outlay, because stainless products generally last longer and require
little maintenance.
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Light-Gauge Steel
Very thin steel sheet that has been temper-rolled or
passed through a cold-reduction mill. Light gauge steel normally
is plated with tin or chrome for use in food containers.
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Line Pipe
Pipe used in the surface transmission of oil, natural
gas and other fluids.
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London Metal Exchange (LME) [i]
A metals trading center for the Western World. The
LME also determines the metal price for aluminum trading for current and
future delivery.
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Long Products
Classification of steel products that includes bar, rod
and structural products, that are “long,” rather than
“flat.”
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Low-Carbon Steel
Steel with less than 0.005% carbon is more ductile
(malleable): It is capable of being drawn out or rolled thin for
use in automotive body applications. Carbon is removed from the
steel bath through vacuum degassing.
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M
M sections (Bantam Beams™, Junior
Beams™)
Light footweight beams primarily used in the
construction of pre-engineered housing. These beams are produced
in lighter footweights, usually six to ten pounds per foot, than
traditional structural products.
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Machining 3
Refers to performing multiple processes to a piece of
metal to produce a customer specified component part.
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Magnesium 6
A light, silvery, moderately hard metallic element used
in processing metals and chemicals, and in alloying aluminum to give it
desired metallurgical properties.
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Man-Hours per Ton (M-H/T)
This is a measure of labor efficiency — the ratio
of total hours worked by steel employees to the tons shipped for a given
period of time. Changes in the inventory level and work that is
contracted out will affect the reported measurement.
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Martensitic
Small category of stainless steel characterized by the
use of heat treatment for hardening and strengthening. Martensitic
stainless steels are plain chromium steels with no significant nickel
content. They are utilized in equipment for the chemical and oil
industries and in surgical instruments. The most popular
martensitic stainless steel is type 410 (a grade appropriate for
non-severe corrosion environments requiring high strength).
****
Matte Finish 1
A dull or grit surface appearance achieved by rolling on
rolls which have been roughened by mechanical, chemical, or electrical
means to various degrees of surface texture.
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Mechanical Properties 1
Those properties of a material that reveal the elastic
and inelastic reaction when force is applied, or that involve the
relationship between stress and strain; for example, the modulus of
elasticity, tensile strength, and fatigue limit. These properties
have often been designated as “physical properties,” but the
term “mechanical properties” is much to be preferred.
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Merchant Bar
A group of commodity steel shapes that consist of
rounds, squares, flats, strips, angles, and channels, which fabricators,
steel service centers, and manufacturers cut, bend, and shape into
products. Merchant products require more specialized processing
than reinforcing bar.
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Metric Ton (mt)
A unit of mass and weight equal to 1,000 kilograms, or
2,204.6 pounds.
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Mini-Mills
Normally defined as steel mills that melt scrap metal to
produce commodity products. Although the mini-mills are subject to
the same steel processing requirements after the caster as the
integrated steel companies, they differ greatly in regard to their
minimum efficient size, labor relations, product markets, and management
style.
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Molybdenum (Mo)
An alloying element used as a raw material for some
classes of stainless steel. Molybdenum in the presence of chromium
enhances the corrosion resistance of stainless steel.
****
Months of Inventory
Ratio of the end-of-period inventory to average monthly
level of sales for the period.
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N
Net Operating Loss (NOLs)
An income-averaging provision that allows companies with
losses to either carry forward the loss up to 15 years to offset
otherwise taxable future income, or carry back the NOLs up to three
years to receive a refund for taxes previously paid (see FAS
109).
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Nickel (Ni)
An alloying element used as a raw material for certain
classes of stainless steel. Nickel provides high degrees of
ductility (ability to change shape without fracture) as well as
resistance to corrosion. Approximately 65% of all nickel is used
in the making of stainless steel.
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Nickel-Based Superalloys 5
Nickel-based alloys developed for very high temperature
service where relatively high stresses are encountered and where high
surface stability is frequently required. Typical applications are
aircraft turbine and land-based turbine components.
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Niobium 5
An exotic alloy valued for its strength at extremely
high temperatures and its ability to superconduct, or pass electricity
with minimal resistance, at very low temperatures. It is used in
aerospace applications, in superconducting magnets in MRI (magnetic
resonance imaging) equipment, when alloyed with titanium, and in
particle accelerators.
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No. 1 Heavy Melt
Obsolete steel scrap grade, at least one-quarter inch in
thickness and in sections no larger than five feet by two feet.
Much of the metal comes from demolished buildings, truck frames and
heavy duty springs. Mini-mills are primary consumers of No. 1
heavy scrap.
****
O
Oil Country Tubular Goods (OCTG)
Label applied to the pipe products used by petroleum
exploration customers. OCTG includes casing, drill pipe, and oil
well tubing, which, depending on their use, may be formed through welded
or seamless processes.
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OPEB Expense
Other Postretirement Employment Benefits: Usually
refers to health care obligations to a mill’s retired workers,
although its meaning also can include layoff benefits (see FAS
106).
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Open Hearth Furnace
A broad, shallow hearth to refine pig iron and scrap
into steel. Heat is supplied from a large, luminous flame over the
surface, and the refining takes seven to nine hours. Open Hearths,
at one time the most abundant steelmaking furnaces among integrated
companies, have been replaced by the basic oxygen furnace.
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Operating Rates
The ratio of raw steel production to the mill’s
stated capacity. Each December, steel companies report to the AISI
their estimated capacity (if they could sell all steel they produced)
for the following year, adjusted for any facility downtime.
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Order Rate
The ratio of new orders recorded to the mill’s
capacity to produce the steel to fill the orders. Many analysts
view trends in the order rate as harbingers of future production
levels.
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Oscillating
A method of winding narrow strip steel over a much wider
roll. Customers want to have as much steel on a coil as will fit
in their machines, so they can spend less time moving the material and
more time using it. By coiling the strip like fishing line (or
thread) over a spool, a much longer strip can fit onto a coil of proper
diameter. Oscillate-wound coils allow the customer to enjoy longer
processing runs.
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Reproduction of all or part of this glossary
is specifically prohibited without the written consent of the
author
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