Alloy
Metallic material containing at least two elements.
One of these elements must be a metal.
Alloying addition
Chemical element added to steel to influence its
properties in a certain way. In the main: nitrogen,
silicon, manganese, phosphorous, sulphur, chrome,
nickel, molybdenum, copper, vanadium, tungsten,
cobalt, lead, aluminium, titanium, tantalum, niobium,
boron.
Backwardation
In future contracts for storable goods, e.g. Nickel,
the difference between the future price e.g. 3
months, and the cash price is usually positive (see
contango). A constellation is however feasible where
this difference can be negative, i.e. the cash price for
the product, such as Nickel, is higher than the
futures price. This can happen especially when it is
advantageous to hold a certain product in stock. If
for example there was a large sudden demand for a
product, then the cost of storage and insurance
would be outweighed by the value of this sought
after product. This is a backwardation.
Call Option
A Call option signifies the right to buy an item or
value (e.g. a stock) at a predetermined fixed price,
“strike price”, either during its validity period
(American option) or at maturity (European option);
there is however no obligation to buy.
Carbide
Carbide is the reaction of carbon with a more
electropositive element (anion with cation). In the
structure of steel, a one such carbide is Fe3C, also
know as Cementite. Together with Ferrite it forms
the structure Pearlite. The resistance of steel in a
nealed condition is determined by the ferrous
carbide content, since carbide has a high toughness
level. High-speed steel und hard metal alloys owe
their cutting edge to carbides of hard materials
tungsten, titanium, tantalum, niobium etc. Carbide is
used in the wear protection of surfaces (e.g.
tungsten carbide).
Carbon
Chemical element: C. Naturally found in different
variations, crystalline in the form of diamonds,
graphite or as amorphous carbon. In iron production
it is used as a reducing and carburisation agent. In
steel production carbon is the alloy which transforms
iron into steel.
Charge
Another name for infeed when placing in a
metallurgic container. Charge is the introduction of
the material, charge time the period of treatment.
Austenite
Face centred cubic lattice (fcc) mixed crystal
structure formed from deposits above the G-S-E line
in an iron carbon diagram, also called Gamma mixed
crystal compound (pearlite or martensite). Austenite
is normally only resistant above 911°C; by adding
alloy additives (Ni, Mn) and hyper quenching,
Austenite also becomes resistant at room
temperature. Austenite’s structure is non-magnetic,
tough and has a strength attained through strain
hardening (manganese steel, nickel steel, chrome-
nickel steel). It is characterised by its high
temperature strength and good anti-corrosive and
anti-inflammatory properties.
 
Cobalt
Chemical element Co. density 8.9 g/cm³. A light grey
ferro-magnetic slightly ductile metal with a good
chemical stability. Co belongs to the Austenite
family. With Cr or W it forms a wear and heat
resistant hard alloy. Used as an alloy in extremely
tough construction steel, high-speed steel,
permanent magnetic materials and high temperature
alloys. Co is also used as a bonding agent in
sintered hard (metal) alloys.
Contango
Contango is the difference between the cash and the
future price. It can be explained thus: if an object is
bought today, yet ownership is deferred for 3
months, the capital is still committed. In addition to
this the object may have to be stored, causing
storage and insurance costs. The ensuing interest
and costs are reflected in the contango. The
contango is usually favourable, but under certain
circumstances can become negative in which case it
is called a backwardation.
Copper
Chemical element Cu, density 8.93 g/cm³ . Amongst
all the technical non ferrous metals copper is the
best electricity conductor, has a high corrosion
resistance and is extremely flexible. It is used either
in pure form or with a little alloy additive for parts
which are heated (furnace nozzles, casting moulds,
electrodes for resistors), in heat conducting
apparatus (heating cooling elements), as a coating
metal used in plating, as an alloy in bearings and

Chromium
Chemical element: Cr. density 6.92 g/cm³ (heavy
metal). Cr belongs to the ferric family; it is one of the
most important alloy metals. Either on its own or with
other alloys it gives steel a good hardness (heat-
treated steel). It is a strong carbide former and
increases the firmness, hardness and yield strength
of steel (tool steel). Steels containing more than 12%
(10.5%) Cr are corrosion resistant (non-rust). Cr
improves the magnetic property (constant magnetic
materials contain up to 9% Cr). Cr decreases heat
conductivity, making high chromium steels difficult to
forge. Chromium coatings protect metal surfaces
against corrosion and abrasion. Steel can be
chromed by diffusion.
Ferrite
Metallographical description of the solid solution
(iron-carbon diagram) where carbon is dissolved
interstitial in its lattice. Its maximum carbon
absorption is only 0.02%. Ferrite is only in low
eutectoid steels, can be combined to form an alloy
(alloyed steel) and has a high magnetic permeability
up to 769°C. Pure ferrite materials possess less
firmness, but high ductility. By forming alloys with Si
or Cr it gains a special property (electrical sheets).
Next to massive and grain boundary ferrite, with
carbon contents of between 0.2 and 0.4% as a result
of quick cooling from high temperatures, it can form
square loop ferrite (Widmannstätten’scher Ferrite).
This brittle structure appears mainly in cast materials
and after welding.
Ferrite Steels
Steels which on solidification contain a ferrite
structure which heat cannot change. This property
depends upon ferrite formations. These steels are
heat resistant, possess especially strong magnetic
fields, do not allow quenching and tend to be coarse.
Hard (metal) alloys
are composed mainly of (up to 95%) highly
enamelled, very hard carbides, either of one carbide
type or of a carbide of varying types (W, Ti, Ta, Nb).
Furthermore chrome or boron carbide as well as
compounds of hard materials with nitrogen may be
present. The remainder is binder phase, Fe, Co or
Ni. Co is the most used. Whereas carbide increases
the abrasion resistance and cutting property, the
binder phase creates a certain toughness and
bending strength. These alloys are produced through
pulverisation. Binding phase and hard materials are
mixed to a powder. The powder is then pressed and
sintered at temperatures higher than the melting
point of the binding phase. The structure then has
the appearance of rolled balls of carbide, with a
binding phase filling.
Hedging
Hedging is to reduce the risk involved with
hard soldering. Electric arc furnaces have electrodes
of conductive copper. Cu is alloyed to steel in
volumes of between 0.2 and 0.5%. It increases its
tensile strength, yield point and hardness. Copper
content of over 0.2%, in combination with
phosphorous and other alloys, improves the
weathering resistance. A precipitation hardening is
possible with a copper content of 1.3%, since the
solubility of copper in iron reduces with falling
temperatures. A damaging brittleness is caused with
upwards of around 0.5% copper in steel.
Ferro-Alloys
Intermediate products produced in coke furnaces,
electric arc furnaces or low furnaces, used as
additives in iron and steel productions, and contain
one or more of the following alloy elements: more
than 8% Si = Ferro silicon metal), more than 30%
Mn (= Ferro manganese), more than 20 % Cr (=
Ferro chrome), more than 40% W (=Ferro tungsten),
more than a total of 10% of other alloys e.g. Cu, Al,
Ti, V, Mo, Nb, F, are standardised according to
European standards and DIN 17560-17599, SEW
1740.
High temperature Steel
Is a austenite steel with very low C-content, at least
13% Cr, high Ni content easily more than 10% even
up to 34%. These steels have good strength
durability at temperatures between 550°C and
600°C, even under long-term mechanical stress.
Two types of alloys >20% Chrome and >30% Nickel
have this property even at temperatures of 900° to
1000°C. DIN 17459 pertains to circular tubes, DIN
17460 to sheets, coils, rods and forgings. Used
mainly in building power stations where normal
temperature steel (DIN 17175 and 17177) is not
enough. Normal temperature and high temperature
steel are standardised in DIN 17240 for screws and
nuts.
High Speed Steel
An alloyed high grade steel, part of the tool steel
group, belonging to the steel group 32 (with Co) and
33 (without Co) (DIN EN 10 027-2). Characterised
by the alloys Cr, W, Mo and V, and, if applicable,
interest rates and price fluctuations. Losses on
the cash market should be compensated by
profits on the futures market. A future
contract is a binding agreement between two
parties to buy or sell, and therefore receive or
deliver
a definite amount and
a certain type of product at
a fixed contract date at
a fixed price
Co. High Speed Steel is extremely hard and tough,
highly corrosion resistant and has a keen cutting
ability, therefore suitable for tool making, also being
able to adjust to temperature changes. The chemical
property and heat control of this steel gives it its
consistency and ability to take temperatures of
600°C. Because of their toughness, only carbides
and oxide ceramics have better cutting abilities than
high speed steel. They are used for metal cutting
tools. DIN 17 350, EN 10020.

A ‘long’ position obliges the buyer to pay the agreed

price at maturity of the contract and to accept
delivery. The corresponding ‘short’ position obliges
the seller to delivery at maturity of the futures
contract and to accept the agreed payment of the
goods.

Iron  
Chemical element Fe, density 7.85 g/cm3 (heavy
metal). As a metal, softer and more pliable than
steel. It conducts electricity and heat better and is
more corrosion resistant. Chemically pure Fe is only
found naturally as meteor iron, otherwise only in
connection with other elements, mainly as an oxide
or carbonate. Technically pure Fe is only used for
special tasks. According to European standards pig
and cast iron are iron alloys with a C content of more
than 2 %.

ISO
Short for the International Organisation for
Standardisation, an institute which coordinates all
standards. The aim of ISO is to promote
standardisation worldwide, to aid the exchange of
goods and services, and to develop the mutual
cooperation of the various technical sectors. ISO
works on ISO-Standards, which should not be
modified in any way by its member states. In
Germany these are called DIN ISO-Standards.

LME (London Metal Exchange) LME Official Price

The LME is one of the leading international future
and option markets for raw materials. Contracts for
the NE-Metals, copper, aluminium, lead, zinc, nickel,
tin and most recently the precious metal silver are
traded. The origins of the LME go back to 1571 and
Queen Elizabeth I. Metal and raw material dealers
used to meet on a regular basis. Finally in 1877 the
London Metal Exchange Company was founded. For
in-depth information a visit to the LME website
(www.lme.co.uk) is recommended.
LME trading day
The LME is a 24 hour market. Certain members (see
LME membership) are authorized to complete
Based on the LME settlement price the various
prices for the different future contracts. The standard
contract with the highest market liquidity runs for 3
months. The longest contract is for 27 months. The
official Future Price is based on the settlement price
with the addition or subtraction of the Contango or
Backwardation.
LME Settlement Price
The last price, not covered by a bid on the offer in
the cash market (for immediate delivery), at the end
of the second ring in the morning session, i.e. the
price of the seller at the close. This price, which is
officially announced on the LME floor is valid for 24
contracts with customers day and night and are not hours and is the accepted reference price for the
restricted to floor trading. Floor trading begins at prompt delivery of the metals.
11.40 and each metal is traded for five minutes. At
12.20, when all metals have been traded once, there
is a 10 minute break, until 12.30 when all metals are
traded once more for five minutes. This second
phase is considered the more important since then
the Settlement and the Official Prices are
determined. After announcement of the Official
Prices the kerb trading begins. During the kerb all
eight contract metals are traded simultaneously. At
15.10 the afternoon session begins, identical to the
morning session with the exception of the Official
Prices.

LME Membership
Over time a multilevel structure of membership has
formed on the LME, accommodating the various
needs of metal and financial traders.
Category 1 - Ring dealing members: the highest
level, they may deal during the ring in the ring and
also outside the ring 24 hours in the open
marketplace. At the moment there are 15 companies
in this category, most of which have strong ties to
the raw material sector.
Category 2 - Associate Broker Clearing members:
These have all the privileges of Ring Dealing
members except they are not allowed to deal in the
ring.
Category 3 - Associate Trade Clearing Members:
These are not allowed to conclude contracts with
customers, nor deal in the Ring, but they may clear
their own exchange business.
Categories 4 – 7: these have no major influence on
the trading activities of the LME.

Martensite
Needle-shaped, very hard brittle substance, formed
by a rapid cooling of austenite during quenching, so
that carbon has no time to diffuse. When heated
(tempered) at high temperatures (up to 720°C and
for as long as 10 hours), martensite forms ferrite with
spheroid cementite.
Martensitic steels
Because of its martensitic alloy content, this is hard
steel formed already by air cooling, such as high
speed steel, steels with 3-6% Mn and >=0.5% C,
steels with 5-8% Ni and more than 5% C, and such
with at least 5% Cr and more than 0.5% C. The
martensitic Cr and high speed steels are easily
hardened and used as tool steel.
Melting Loss
Carbon oxidisation is a characteristic dimension in
steel refining. By blowing oxygen the smelting is
decarbonised. The melting loss (in %) shows how
much carbon was removed from the smelting.
Reactor points for carbon melting loss are to be
found directly under the oxygen stream, on the fire
resistant lining of the converter, on the interface
metal/CO-bubbles and in the metal-emulsion slag.
Melting loss curves indicate the time needed for
decarbonisation in every refining job.
Metal
Chemical elements which are distinguished by their
strong reflective powers and are good heat and
electricity conductors. Metals have a crystalline
structure with a lattice of metallic attachments, have
good durable properties and are readily pliable. They
are distinguished according to density as heavy and
light metals (bordering 4.5 g/cm³), chemically as
precious and non precious metals. Similar properties
are classified in the periodical table for the groups
alkaline, earth alkaline and rare earth metals.
Further distinctions are ferrous and non-ferrous
metals.
Molybdenum
Chemical element: Mo, density 10.2 g/cm³ (heavy
metal). White greyish metal used as an alloy in steel.
It increases toughness and high temperature
strength, hinders the brittleness of chrome and
manganese heat treatable steel. Forming carbide it
increases the corrosion resistance in low alloyed
heat resistant steel. In high speed steel and higher
alloyed steel Mo can be a replacement for tungsten
to a certain extent. Mo has an edge layer
carburisation effect in case-hardened steel. In
austenite steel it increases the hot temperature
strength and corrosive resistance.
MT
 metrische Tonne

Nickel Nickel Options (LME)

Chemical element Ni. Density 8.9% g/cm³ (heavy
metal). Nickel belongs to the austenite family. Steel
is made corrosion resistant by adding at least 8%
nickel. Nickel improves the durability and coating
and increases the toughness, especially at low
temperatures. Nickel is close-grained, lowers the
overheating sensitivity and increases the electrical
resistance.
Nickel-base alloy
This is a collective name for alloys of Nickel and
other metals, Cu, Cr, Fe, Mo, with a good heat and
corrosion resistance. They are referred to by many
trade names. W. Nr. 2.4360 is NiCu 30 Fe, an alloy
with approx. two thirds nickel and one third copper. It
is both extremely tough and corrosion resistant
(sulphuric acid, hydrochloric acid, hydrofluoric acid,
saline solutions) and is therefore used in pickling
plants, chemical apparatus and sea water
equipment. There are also cast iron alloys containing
nickel of more than 50%, with about 20% Cr and a
significant amount of Co with additives of Mo, Ti, Al
and Fe. They are used for high technical and
temperature demands. Sheets for various usage can
be plated with a nickel-base alloy (explosive plated,
roll plated). A range of nickel-base alloys can be
found in the steel-iron list. Their product number
begins with 2.
On the underlying nickel future contacts, nickel
options (calls/puts) have maturities of up to 27
months; declaration date (the last day on which the
option can be exercised) is the first Wednesday of
the month in which the option matures, delivery date
is the third Wednesday in the month of maturity.
Non-alloyed stainless steel
This term has been newly defined with the
introduction of DIN EN 10020. Previously it was
used for all stainless steels where, apart from
carbon, no other alloy was added. Now the term
non-alloyed stainless is used for steels which have a
higher purity than quality steels, especially with
regard to non metallic inclusions. This steel is used
mainly for quenching and tempering or surface
hardening. There are many regulations in place to
control harden-ability, firmness and toughness, so
that the highest standards are maintained.
Non ferrous metals
This is the collective term for all metals except iron.
They are distinguished according to density (above
or below 4.5 g/cm³) as heavy or light metals, as low
or high smelting, as precious and non-precious non-
ferrous metals.

Nickel Future contract (LME)

Contract size: 6 mt, currency: US-dollar, minimum
price change: 1 US-dollar per mt, delivery date for
physical nickel: daily for the 3 month future contract,
every Wednesday for the following 3 months and
every third Wednesday for the next 15 months
(totally 27 months). Quality: primary nickel with 99.8
% nickel content with a chemical analysis according
to the ASTM Specifications. Form: cathodes, pellets
or briquettes.

Phosphorous Put option

Chemical element, P, density 1.8 g/cm³ (non metal). A put option is the right to sell a certain item or value
Embrittles steel material and is therefore combined (e.g. a stock) at a predetermined fixed price, “strike
with a limy slag when refining raw iron containing price”, during (American Option) or at the end of
phosphorous. Machining steel contains a certain (European Option) the contract period.
amount of P. In low alloyed steel P affects
atmospheric corrosion. Phosphorous enhancement
on grain boundaries is the reason for temper
embrittlement. Phosphor alloyed high strength deep
drawn steel is a modern lightweight solution in the
car industry.

Rust Free Stainless Steel

In 1958 the Informationsstelle Edelstahl Rostfrei (ISER) – the Stainless Steel Information Office - was founded as
a joint organisation by stainless steel producers, processors, traders, refiners, alloy manufacturers and other
interested parties. The aim was to provide company neutral information about this complex material and its varied
usages. From the beginning it soon became clear that there was a need to have one single concise collective
name from amongst the various terms, norms and marketing names of producers; this became ‘Stainless Rust
Free’ shortened to ‘Rust Free’, which then became a registered trade mark used by many stainless steel
processors as part of their advertising strategy. The term is however erroneously sometimes used for non rust
steels (DIN EN 10088).

Stainless Steel Spectral analysis

Is a collective term for those steels which have been The process of qualifying chemical elements in
smelted in a special procedure (secondary steels (qualitative spectral analysis) and of
metallurgy), have a high purity and react consistently determining their quantity (quantitive spectral
to heat treatment. There are two types according to analysis). In an active state, each element sends out
their chemical properties (DIN EN 10 020); non- a collection of rays according to its components.
alloyed (steel group 10-18) and alloyed (steel group Using a prism the frequency of the various rays can
20-89). It is differentiated according to its use, as be separated and projected next to one another on a
structural, engineering, container, tool, high-speed screen, where they can be determined according to
or ball-bearing steel. Steel is also characterised by position (deflection) and intensity. The position
its properties: chemically resistant, non corrosive, characterises the element, the intensity its mass
heat resistant, high temperature alloy, suitable for weight. With a spectroscope the evaluation is
welding purposes, and with special physical or determined by the viewer, with a spectrometer by
magnetic properties or yield levels. photocells and electronic evaluation. The process
releases a discharge.
Scrap
Material with a high metal content, which is used not
only as a cooling agent, but also as a secondary raw
material in steel production. Scrap can also be
alloyed or non-alloyed. Scrap is accrued in a steel
works and outside scrap is bought in. There are ten
different types of scrap: old scrap, new scrap, heavy
old scrap, shredder scrap, waste combustion scrap,
waste scrap, steel turnings, bales made of new light
sheet scrap and new scrap. The scrap list is neither
internationally recognised nor standardised.

Tantalum Tool steel

Chemical element, Ta, density 16.6 g/cm³, melting
point: 2,995 +/- 25°C. Greyish white, ductile metal
with a high chemical stability at room temperature. Is
used in its pure form, or as an alloyed additive, for
heavy duty parts. Used with Niobium (Nb) as a
stabiliser in chemically resistant steels and as
tantalum carbide for use in carbides.
Titanium
Chemical element, Ti, density 4.5 g/cm³ (light metal).
Ti, with its alloys, is to be found in apparatus and
aeroplane assembly thanks to its firmness, low
density and high corrosion resistance. Ti is a much
used alloy (stabilises steel and stainless
construction steel). In austenitic non rust steel it
binds the carbon so preventing its separation.
Titanium carbides are found in hard wearing stellite
types. Titanium oxide (rutile) is used as a welding
additive.
Stainless steel of high durability, high corrosion
resistance and high toughness suitable for tool
making. It must also be able to adjust to wide ranges
of temperature change. Tool steel is characterised
as cold forming steel (i.e. non-alloyed or low alloyed
for surface work at temperatures of less than
200°C), hot-work steel and high speed steel. DIN
17350.
Tungsten
Chemical element W, density 19.3 g/cm. Grey,
robust metal, resistant to chemical attacks at room
temperature. W is extremely hard with high
temperature strength. It is a valuable alloy for steel
as it increases corrosion resistance. With cementite
it forms carbide, type M3C and M6C. W is especially
good for tool steel, providing a good cutting edge,
and for permanent magnets. Because of its
hardness it is fated to be a hard metal alloy.

Tungsten carbide
Is one of the most important components of hard
metal alloys.

VANADIUM
Chemical element V, density: 6.07 g/cm³. Ductile silvery white metal. In steel V. has the following impact:
increases tensile strength, yield and high temperature strength, decreases brittleness. V. produces fine grain
material and makes steel impervious to overheating.

Yield
Ratio (in %) of utilisable material to deployed material, e.g. the yield of a smelting oven in total or of an added
alloyed element or a rolling mill (of applied weight).