Proprietary & Confidential

Carbon & Low Alloy Steel

Market Description & Sales Opportunities for Handheld XRF



March 10, 2011





White Paper

Proprietary & Confidential 2



Table of Contents




Market Overview . 3

Competing/Incumbent Technology 3

Application of Handheld XRF in LAS. 5

Surface Condition Challenges 6

Surface Preparation ... 6

Instrument Filter Settings .... 8

Conclusion .. 9

Appendix 1 Low All oy Steel Market Segments & Sub-Segments .

Appendix 2 Thermo Scientific Niton Handheld XRF LODs .

Appendix 3 Low All oy Steels in Thermo Scientific New Alloy Library..

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13

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Market Overview
Carbon and Low Alloy Steel (LAS) is a classification of ferrous metal that typically contains less
than five percent nickel (Ni) or chromium (Cr). Other major elements in this classification are
carbon (C) and molybdenum (Mo) with low levels of additional elements added to make minor
modifications to the physical properties of the metal. Carbon content is very important but
requires more complex instruments, sample preparation, and testing time. Therefore, most
companies limit themselves to testing for variations in manganese (Mn), nickel, chromium, and
molybdenum. Unlike stainless steel, which has higher levels of chromium and/or nickel, these
alloys are prone to oxidation (rust) so in many situations preparing the surface is required to
improve the accuracy of the test.
A variety of carbon and low alloy steel market areas are well-suited for handheld XRF (HHXRF)
(see Appendix 1). Within these market segments, two product groups have been selected that
provide the most relevant, immediate application of HHXRF:
Bar and rod products (SBQ Special Bar Quality)
Oil country tubular goods (OCTG) and refinery applications
With only a few exceptions, steel grades are well defined, with several of the most popular
already introduced into the Thermo Scientific Niton standard library. Approximately 20
additional grades have been verified and are being incorporated into the library of both the
Thermo Scientific Niton XL2 GOLDD and the Niton XL3t GOLDD+ instruments (see Appendix 3).
A variety of segments exist within these market areas, including primary producers, processors,
distributors, service centers, and end users. While all of these sub-segments may have a use for
HHXRF, it is believed that distributors and service centers pose the greatest short-term
opportunity due to their sheer number, the variety of materials they handle (including stainless,
LAS, etc.), and the ROI potential due to missed/mixed shipments and liability. One example is
Ryerson in Edmonton, Alberta Canada where many of their customers require material
certification from a Thermo Scientific Niton analyzer prior to shipment. Please, however, do not
ignore possibilities with primary producers since we have already sold systems into many of
these types of customers.
Competing/Incumbent Technology
Optical emission spectroscopy (OES) instruments have been the overwhelming choice for
carbon and low alloy steel testing for over 25 years. There are two main modes for OES testing:
Arc mode, which is a quick test
Spark mode, which is longer yet more accurate
In the arc mode the test is fast (3-5 seconds), is more resistant to adverse surface conditions,
and does not require a skilled operator. Early mobile instruments were very large and heavy,
but today there are a few smaller handheld OES instruments. The majority of these
instruments, however, are still relatively large in comparison to HHXRF. With the introduction
of the argon shielded spark test, analysis of C, phosphorus (P), and sulfur (S) are possible and

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the accuracy has improved; however careful surface preparation and a skilled operator are
needed to achieve good results. To date, no one has successfully introduced a spark-capable
system in a handheld package.
Numerous customers have chosen OES instruments over the years, so many companies may
have from 5 to 20 instruments that are well over 10 years old at one location. These
instruments are difficult to move within the plant because of their size, and they are becoming
very unreliable. Further, the original manufacturers often can no longer supply replacement
parts and their service technicians are not trained to service the instruments. Customers will
be looking for replacement equipment that is more dependable, easier to use, and is more cost
effective (less expensive).
Tables summarizing the advantages and disadvantages of OES technology are below.

Arc Test (Quick)
Advantages Disadvantages
Rapid testing (<5 sec) Cannot detect C, P, S, boron (B)
Little or no surface prep Accuracy +/- 20%
Work on a variety of sample shapes Must clean electrode often
Does not require argon gas Clean pistol head daily
Need temperature adjustments
Burns the sample surface
1


Spark Test (Accurate)
Advantages Disadvantages
Can detect all elements including C Must carefully grind every sample
High accuracy (+/- 5%) Need flat surface or gas seal head
adapter
Bulky & heavy systems (no HH)

1
Burns from Arc/Quick tests create surface blemishes in the range of a few millimeters and can have
considerable depth (approximately 1mm) which may create a potential failure point.

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Requires large argon tanks
Need temperature control
Longer test time (~15 s)
High maintenance (brush electrode, daily
head disassembly, and optics cleaning)
Burns the sample surface
2
Application of Handheld XRF in LAS

Historically, we have not specifically targeted these markets with our HHXRF offerings due to
the high sensitivity required for accurate testing of chromium, nickel, and molybdenum at
concentrations levels below 0.10%. Now, with the enhanced Niton XL3t GOLDD+ analyzer and
the new Niton XL2 GOLDD analyzer, we can achieve limits of detection well below the 0.10%
level. Some potential customers may have already been exposed to our instruments for
applications in stainless steel or other alloys, but other customers will be new to us.
HHXRF analysis has steadily improved its performance over the years, so today we have
detection limits that rival OES for most elements except carbon, silicon, aluminum, and
magnesium. Yet, a clear advantage of HHXRF over Arc testing is its ability to detect P and S in 5
seconds or less with geometrically optimized large area drift detector (GOLDD) technology, not
to mention its comparative maintenance-free usage. OES would require the spark mode,
which is bulky equipment requiring approximately 15 seconds of test time.

Handheld XRF
Advantages Disadvantages
Rapid testing (<10 sec) Some surface prep may be needed
Easy, quick startup Helium purge for lowest Si analysis
Simple, effective software High detection limit for aluminum
Automatic data storage High detection limit for magnesium
Simple, specialized data downloads

2
Burns from Spark tests can create significant surface blemishes exceeding 10 mm in diameter, but are not as
deep (~0.1 mm).

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Easily test small diameters & turnings
P and S detection with GOLDD
Surface Condition Challenges
Since carbon and low alloy steel develop heavy oxide/rust surfaces over time and often have a
protective coating of oil to prevent oxidation, sample preparation may be required in some
situations. There are three general classifications of surface conditions than must be
addressed.
Oxidation
Surface oxidation/rust is the most common problem associated with
this class of steel. Rust occurs very rapidly on the surface of carbon
and low alloy steel, which we can easily recognize by its reddish-brown
color. The elemental results using HHXRF can be lower than
anticipated if you try to perform a test without first removing the
oxidation layers. In some cases, one or more elements may even be
much higher than expected.
Scale
Scale is a heavy coating found on the surface of most large
unfinished ingots in steel mills and forges. During the rolling or
forming process, scale develops due to the high surface
temperatures and exposure to oxygen in the air. This layer is very
difficult to remove once the material has returned to ambient
temperature.
Oil
A protective coating of oil is common on the surface of finished
bars or rods that are being warehoused before final fabrication.
This oil is normally used to prevent rust/oxidation of finished bar or
rod products. Since oil can contain several of the elements that we
are trying to analyze in the steel product (e.g., silicon (Si), S, Mo),
we must remove them prior to testing. These coatings need to be
removed prior to testing using HHXRF.
Surface Preparation
Correct analytical results are only possible if the rust or oil is removed before testing the metal.
Remember, anything on the surface becomes part of the final chemistry. A general rule of
thumb is that you want the surface of the material to be shiny and free of any oils. A dull, gray
finish might also indicate surface conditions that might compromise the analysis.


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Removing Scale
To remove scale, you will need a high-powered (18-volt Li-ion) cordless right-angle grinder with
a course (24-grit) grinding stone to remove the contaminated surface. As with rust layers,
always grind through the scale until a shiny metal surface appears before attempting an
analysis. The images below show a typical angle grinder, grinding wheel, and sanding disc
appropriate for sample preparation.



Removing Rust
The recommended method for removing rust is to grind the surface using a cordless right angle
grinder (see operation manual for further details). If the rust coating is light you can use a
sanding disc, but a course grinding wheel might be needed if the surface is coated with a heavy
layer of rust. Before attempting an analysis, always sand or grind through the rust layers until a
shiny metal surface appears.


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Removing Oil
The simplest method for removing oily preservatives is wiping the surface clean with a
disposable alcohol impregnated cloth. You can purchase a container of these cloths
inexpensively in local stores. It is prudent to use one or more cloths per sample and then
dispose of them to prevent oils from being wiped back onto the surface.
If the surface is free of oil, but one or more elements are still higher than normal, a light grind
may be needed. This type of grinding is best done using the same right angle grinder. Since
only a small amount of surface material needs to be removed, remove the grinding wheel and
install the rubber back plate and a 50 grit disc. As the disc becomes contaminated, it will be
necessary to remove the oily disc and install a fresh disc.
Please be aware during demonstrations that some companies may not want the surfaces of rod
and bar stock to be damaged. In this case, it may be best to do analysis on the end of pieces
where grinding will not impact the outside dimensions of the materials.
Instrument Filter Settings
Filter time settings can be changed based on the sensitivity of the elements needed to identify
an alloy. Elements such as Mn, Ni, and Cr are added in carbon and low alloy steel at levels well
above their limits of detection. When these are the only elements necessary to identify the
alloy, the main filter time can be rather short. Some alloys, requiring the analysis of light
elements (P, Si, and S) for positive identification, have levels much closer to their detection
limit; therefore they require longer test times to derive a good reading.
The Niton XL2 GOLDD instruments will need a minimum main filter time of 5 to 10 seconds to
provide accurate analysis of elements such as manganese, nickel, chromium, and molybdenum.
The alloys that contain only variations of those elements will show the grade identification very
quickly. The light filter testing for P, s, and Si should be approximately 10 seconds or more of
additional time.
Shiny areas, good
for analysis
Heavy scale removed,
but still dull. More
grinding required
Heavy scale/rust

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The Niton XL3t GOLDD+ will produce excellent elemental analysis for the main filter elements,
using times as short as 3 to 5 seconds. The majority of the low alloy steel alloys have low P and
S specifications, but they are identified by other elements like Mn, Ni, Cr, and Mo. In addition
to the main filter, adding 10 seconds or more will be needed for light element (P, Si, and S)
analysis.
The grade library has been designed to control the use of additional filters beyond the main
filter. Within the filter selection of the software (Element Range) there is a check box
"Autoswitch on Time Only." To verify this setting, return to the main menu and select
advanced. Next select element ranges and the software screen displayed below will appear.
The "Autoswitch on Time Only" box should remain unchecked to allow the grade library to
control the use of additional filters.

Conclusion
Thermo Scientific Niton handheld XRF analyzers provide the customer with a wide selection of
instruments that can address many segments of the Low Alloy Steel markets that have been
historically served by OES instruments. New technologies and advancements in HHXRF present
customer with a new alternative to meet their needs while providing greater value in many
applications.
The following Appendixes provide more detail on the C and LAS products and market segments
as well as LODs and Thermo Scientific Niton Alloy Library entries for LAS. Some classifications of
products, such as flat rolled coils will generate few sales since they generally do not have high-
liability issues when product mixes occur. In contrast, bar and rod products may have a much
higher cost or liability associated with shipment of mixed or incorrect alloys. Steel wire has a
high price for mixed or incorrect alloy shipments, but there are technical challenges associated
with surface coatings and limits of detection for some elements.

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Appendix 1: Low Alloy Steel Market Segments and Sub-Segments

1. Prime Carbon & Low Alloy Steel Markets
a. Bar & Rod Products or Special Bar Quality (SBQ )
i. Definition:
Rod is approximately to (6-13 mm) in
diameter and 10 to 20 feet (3-6m) Long. Bars
are from up to over 6 (13-150 mm) in
diameter and 10 to 20 feet (3-6 m) in length.
Bars can be in the form of round, square,
hexagon and numerous other shapes
ii. End Use: Gears, Steering Knuckles, Brake Cams
iii. Elements: C, Mn, P, S, Ni, Cr, Mo, Pb, vanadium (V)
iv. Customers:
1. Service Centers AM Castle, Ryerson
2. Mini Mills Nucor, Cascade, MacSteel
3. Large Mills ArcelorMittal, US Steel, Republic
4. Processing Mills Bar Processing Corp, Steel Dynamics
v. Need for elemental analysis: High
b. Oil Country Tubular Goods (OCTG) & Refinery Pipe
i. Definition:
Large diameter tubing that is intended for
use in oil field drilling operations or for
transportation of oil or gas products. Smaller
diameter pipe used within a refinery has
different physical and chemical properties
then oil country pipe.
ii. End Use: Oil or gas drilling companies, suppliers
iii. Elements: Mn, Si, Ni, Cr, Mo, V, tungsten (W)
iv. Customers:
1. Refineries Shell, Exxon Mobile, Conoco Phillips, BP
2. Inspection Companies MISRAS/Conam, GCT, Inspection
Specialists
3. Pipe Suppliers US Steel, Rocky Mountain Steel, Wheatland Tube
v. Need for elemental analysis: High

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2. Secondary Carbon & Low Alloy Steel Markets
a. Forging
i. Definition:
Forging uses high pressure or heavy impact
hammers to form a billet into its final shape.
This process modifies the grain structure to
improve product performance in certain high
stress applications.
ii. End Use: Drive shafts, combustion crank shafts.
iii. Elements: C, Mn, Ni, Cr, Mo, V
iv. Customers: Jorgenson Forge, Meadville Forge, Scot Forge, Dayton Forge,
Ellwood City Forge
v. Need for elemental analysis: Medium to High
b. Scrap
i. Definition:
Metal components that are defective or have
come to the end of their useful life. They are
reclaimed, processed and remelting into new
metal.
ii. End Use: Remelted into new steel products
iii. Elements: Mn, Ni, Cr, tin (Sn), lead (Pb)
iv. Customers:
1. Large Steel Mills Outside contractors such as Tube City and
Multi-Serve
2. Mini Mills Nucor, Cascade
3. Scrap Yards Miller Compressing, OmniSource, ELG
v. Need for elemental analysis: Medium
3. Other Carbon & Low Alloy Steel Markets
a. Wire
i. Definition:
Steel wire is a coil which is hundreds of feet
in length and from 1/8 up to over 1 inch in
diameter.
ii. End Use: Pins, bolts and other fasteners.
iii. Elements: C, Mn, Ni, Cr, Mo, niobium (Nb),

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titanium (Ti), boron (B)
iv. Customers
a. Electric furnace mills
b. Processing mills
c. Fastener manufacturers
v. Need for elemental analysis: High but surface conditions and LOD
requirements may make HHXRF unreliable.
b. Plate and Sheet
i. Definition:
Sheet steel is approximately 1/8 to (3-
6mm) in thickness, and several feet or meters
in length and width. Steel plate is usually
up to several inches (6mm to several cm) in
thickness.
ii. End Use: Heavy equipment and structural components.
iii. Elements: C, Mn, Si, aluminum (Al), Nb, Ti, B
iv. Customers
1. Integrated Steel Mills-ArcelorMittal, US Steel
2. Electric Furnace Mills - Nucor,
3. Service Centers
4. Processing Mills
v. Need for elemental analysis: Low to medium
c. Flat Rolled Coil
i. Definition:
Thin gauge rolls which are 1-3m wide and can
be over 100 meters in length. Often these
coils are galvanized (zinc (Zn), Zn/Al Coating)
to prevent oxidation or rust.
ii. End Use:
1. Automobile Body Parts
2. Appliance Exteriors
iii. Elements: C, Mn, Si, Al, Nb, Ti
iv. Customers:
1. Integrated Steel Mills ArcelorMittal, US Steel
2. Electric Furnace Mills Nucor, etc.
3. Service Centers
4. Processing Mills

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v. Need for elemental analysis: Low to medium

Appendix 2: Thermo Scientific Niton Handheld XRF Limits of Detection


XL2 GOLDD
C N/A
Mn 0.022
Ni 0.022
Cr 0.011
Mo 0.025
Cu 0.011
Nb 0.024
Ti 0.025
V 0.015
Sn 0.009
Pb 0.008
Al 0.300 0.220 0.065 *
Si 0.043 0.035 0.018 *
P 0.020 0.011 0.007 *
S 0.010 0.009 0.006 *
* with He purge
0.003
0.010
0.004
0.005
0.003
0.003
XL3t GOLDD+
0.018
N/A
0.002
0.007
0.002

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Appendix 3: Low Alloy Steels in New Thermo Scientific Niton Alloy Library
Alloy
Mn P S Si Ni Cr Mo Other
Low High Low High Low High Low High Low High Low High Low High El Low High
LA-C Steel 1.10 0.04 0.05 1.00 0.25 0.20 0.06 Pb 0.05
LA-1117 1.10 1.30 0.04 0.08 0.50 1.00 0.25 0.20 0.06 Pb 0.05
LA-11L17 1.10 1.30 0.04 0.08 0.50 1.00 0.25 0.20 0.06 Pb 0.10 0.50
LA-1141/44 1.35 1.65 0.04 0.08 0.50 1.00 0.25 0.20 0.06 Pb 0.05
LA-12L14 0.85 1.15 0.04 0.09 0.26 0.50 1.00 0.25 0.20 0.06 Pb 0.10 0.50
LA-1215 0.75 1.05 0.04 0.09 0.10 0.50 1.00 0.25 0.20 0.06 Pb 0.05
LA-1522 1.10 1.40 0.04 0.05 1.00 0.25 0.20 0.06 Pb 0.05
LA-300M 0.60 0.90 1.45 1.80 1.65 2.00 0.70 0.95 0.30 0.65 V 0.05
LA-1330/40/45 1.60 1.90 0.04 0.04 1.00 0.25 0.20 0.06
LA-3115 0.40 0.60 0.03 1.00 1.10 1.40 0.55 0.75
LA-3310 0.30 0.60 0.03 1.00 3.25 3.75 1.40 1.75
LA-4130 0.40 0.60 0.10 1.00 0.25 0.80 1.10 0.15 0.35
LA-4140 0.75 1.10 0.10 1.00 0.25 0.80 1.10 0.15 0.25 Pb 0.05
LA-4330V 0.60 1.10 1.00 1.65 2.00 0.75 1.00 0.35 0.50 V 0.05 0.10
LA-4340 0.60 0.80 1.00 1.65 2.00 0.70 0.90 0.20 0.30
LA-4615/20 0.45 0.65 0.04 1.00 1.65 2.00 0.20 0.30
LA-4820 0.50 0.70 1.00 3.25 3.75 0.20 0.30
LA-6150 0.70 0.90 0.04 1.00 0.80 1.10 V 0.15 0.50
LA-6418 1.20 1.50 1.30 1.70 1.65 2.00 0.20 0.40 0.35 0.45
LA-8620 0.60 0.95 1.00 0.35 0.75 0.35 0.65 0.15 0.25 Pb 0.05
LA-8822 0.75 1.00 0.04 1.00 0.40 0.70 0.40 0.60 0.30 0.40
LA-9310 0.40 0.70 1.00 2.95 3.55 1.00 1.45 0.08 0.15
LA-52100 0.25 0.45 0.03 1.00 0.30 1.30 1.60 0.10
LA-A193 0.45 0.70 0.04 1.00 0.80 1.15 0.50 0.65 V 0.25 0.35
LA-A485-1 0.95 1.25 0.03 0.45 0.75 0.25 0.90 1.20 0.10
LA-A710 0.40 0.70 0.03 1.00 0.70 1.00 0.60 0.90 0.15 0.25 Cu 1.00 1.30
LA-HY 80 0.10 0.40 0.03 1.00 2.00 3.25 1.00 1.80 0.20 0.60
LA-HY 140 0.60 0.90 0.03 1.00 5.00 6.00 0.40 0.60 0.20 0.60
LA-LF-3 0.90 0.04 1.00 3.25 3.75 0.10
LA-Nit 135 0.50 0.80 0.03 1.00 0.25 1.40 1.80 0.30 0.40 Al 0.95 1.30
Pyro 53 0.25 0.50 1.60 2.40 0.75 1.25 3.00 3.50 Cu 1.80 2.30
1.25Cr(P11) 0.65 0.50 1.00 0.90 1.50 0.42 0.65 V 0.10

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