{"id":10282,"date":"2017-12-20T05:52:39","date_gmt":"2017-12-20T04:52:39","guid":{"rendered":"http:\/\/www.steelavailable.com\/?p=10282"},"modified":"2020-07-19T16:18:25","modified_gmt":"2020-07-19T14:18:25","slug":"counterfeit-steel-big-worry-industry","status":"publish","type":"post","link":"https:\/\/www.steelavailable.com\/ko\/counterfeit-steel-big-worry-industry\/","title":{"rendered":"Counterfeit Steel is a Big Worry in the Industry"},"content":{"rendered":"<p class=\"qtranxs-available-languages-message qtranxs-available-languages-message-ko\">\uc8c4\uc1a1\ud569\ub2c8\ub2e4, \uc774 \uae00\uc740 <a href=\"https:\/\/www.steelavailable.com\/en\/wp-json\/wp\/v2\/posts\/10282\" class=\"qtranxs-available-language-link qtranxs-available-language-link-en\" title=\"English\">English<\/a> \ub85c\ub9cc \uc9c0\uc6d0\ud569\ub2c8\ub2e4.<\/p><p><b><i>Counterfeit alert! Counterfeit products are fakes or unauthorized replicas of the real product. They are often produced with the intent to take advantage of the superior value of the imitated product.<\/i><\/b><\/p>\n<p><span style=\"font-weight: 400;\">According to the Steel Alliance Against Counterfeiting (<\/span><a href=\"https:\/\/fight-fake.org\/\"><span style=\"font-weight: 400;\">SAAC<\/span><\/a><span style=\"font-weight: 400;\">), more than 53% of the steel industry has personally come across fake products during their day-to-day operations. (<\/span><a href=\"http:\/\/www.tradearabia.com\/news\/IND_325162.html\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">There are mainly two illicit practices, namely: (<\/span><a href=\"https:\/\/fight-fake.org\/news\/12\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A fraudulent branding of non-certified steel products using the brand of well-known, certified suppliers often sold together with falsified certificates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The refurbishment of used steel products to appear and be sold as new<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10817 img-fluid aligncenter\" src=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Risks-1024x538-1.jpg\" alt=\"\" width=\"638\" height=\"335\" srcset=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Risks-1024x538-1.jpg 1024w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Risks-1024x538-1-600x315.jpg 600w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Risks-1024x538-1-768x404.jpg 768w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Risks-1024x538-1-100x53.jpg 100w\" sizes=\"auto, (max-width: 638px) 100vw, 638px\" \/><\/p>\n<p><b><i>84%<\/i><\/b><i><span style=\"font-weight: 400;\"> of counterfeit products affect construction industry<\/span><\/i><\/p>\n<p><b><i>98%<\/i><\/b><i><span style=\"font-weight: 400;\"> of fake steel products pose a risk to the industry<\/span><\/i><\/p>\n<p><b><i>53%<\/i><\/b><i><span style=\"font-weight: 400;\"> of suppliers faced with counterfeit steel products<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.ernefittings.com\/documents\/20147\/589876\/Report_Counterfeit+steel+products+in+the+GCC.PDF\/dede1730-1868-00f6-931d-5cad5aeb649e\"><i><span style=\"font-weight: 400;\">Source<\/span><\/i><\/a><\/p>\n<h3><b>The Impact Of The Scandal At Kobe Steel Ltd.<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Although the problem of counterfeit concerning companies using substandard materials usually involves SMEs, the most recent scandal regarding counterfeiting material involves a large corporation like <\/span><b>Kobelco (Kobe Steel)<\/b><span style=\"font-weight: 400;\"> based in Japan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees at Kobe Steel had falsified Material Test Certificates (MTC\u2019s) to make the materials meet the customer specifications when in fact they did not. The fraud lasted over a decade and had cost the company millions. Two days after the announcement, Kobe Steel shares price lots value for over 133 million USD. (<\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-12-18\/five-things-you-need-to-know-to-start-your-day-jbcp1nnc\"><span style=\"font-weight: 400;\">More Numbers<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.bloomberg.com\/api\/embed\/iframe?id=7873af8c-9440-472a-a3fe-f27c848f151c\" width=\"600\" height=\"340\" frameborder=\"0\"><\/iframe><\/p>\n<p><i><span style=\"font-weight: 400;\">Kobe Steel Says &#8216;May Find More Fake Data&#8217;<\/span><\/i><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-10-17\/kobe-steel-is-said-to-have-likely-faked-data-for-over-a-decade\"><i><span style=\"font-weight: 400;\">Video by Bloomberg<\/span><\/i><\/a><\/p>\n<h3><b>Creusot Nuclear Forge In France<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A few years ago a major scandal involved a <\/span><b>leading French <\/b><span style=\"font-weight: 400;\">forgemaster. The French Authority for the Nuclear Safety, Autorit\u00e9 de S\u00fbret\u00e9 Nucl\u00e9aire (ASN), announced in April 2015 the discovery of an anomaly in the composition of the steel in certain zones of the vessel closure head and the vessel bottom head of the Flamanville EPR reactor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In May 2016, the regulator said an ongoing quality audit at Le Creusot forge, bought by Areva in 2006, had identified &#8220;irregularities&#8221; in paperwork on some 400 plant forged components produced there since 1965 and delivered to 18 French nuclear power reactors operated by EDF. The issues <\/span><i><span style=\"font-weight: 400;\">&#8220;comprise inconsistencies, modifications or omissions in the production files, concerning manufacturing parameters and test results&#8221;<\/span><\/i><span style=\"font-weight: 400;\">, it said. (<\/span><a href=\"http:\/\/www.world-nuclear-news.org\/RS-EDF-ordered-to-check-component-records-1708174.html\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On August 2017, France&#8217;s nuclear safety regulator has opened a public consultation on a draft decision governing the review of manufacturing files at Areva NP&#8217;s Le Creusot forge. This draft decision requires EDF to examine the manufacturing records of all components produced by the facility that are in use at its operating nuclear power plants. (<\/span><a href=\"https:\/\/www.theguardian.com\/environment\/2017\/mar\/24\/areva-creusot-nuclear-forge-france-hinkley-point\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<h3><b>Counterfeit Parts In The Aerospace Supply Chain<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Even the <\/span><b>Aerospace industry<\/b><span style=\"font-weight: 400;\"> have experienced counterfeit issues in the past. More than in other industries, counterfeiting in the aerospace industry may have life or death consequences.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cThough we know counterfeit parts enter the aerospace supply chain, the time and place of their entry <\/span><\/i><span style=\"font-weight: 400;\">is<\/span><i><span style=\"font-weight: 400;\"> unpredictable\u201d<\/span><\/i><span style=\"font-weight: 400;\">, has written Marion C. Blakey, President and Chief Executive Officer of the Aerospace Industries Association (<\/span><a href=\"http:\/\/www.aia-aerospace.org\/wp-content\/uploads\/2016\/05\/counterfeit-web11.pdf\" class=\"mtli_attachment mtli_pdf\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aerospace and defense products throughout their lifecycle sometimes requires the use of parts that may no longer be available from the Original Equipment Manufacturer (OEM), authorized aftermarket manufacturer or through franchised or authorized distributors or resellers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When parts and materials, such as microcircuits, are acquired through distribution channels other than those franchised or authorized by the original manufacturer, there is higher risk to receive parts that do not meet the original specifications.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10818 img-fluid\" src=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Top-Ten-List-1024x651-1.jpg\" alt=\"\" width=\"643\" height=\"409\" srcset=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Top-Ten-List-1024x651-1.jpg 1024w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Top-Ten-List-1024x651-1-600x381.jpg 600w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Top-Ten-List-1024x651-1-768x488.jpg 768w, https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Top-Ten-List-1024x651-1-100x64.jpg 100w\" sizes=\"auto, (max-width: 643px) 100vw, 643px\" \/><a href=\"http:\/\/cdn2.hubspot.net\/hub\/271833\/file-376066134-pdf\/docs\/cost-of-counterfeit-metal-construction-materials.pdf\" class=\"mtli_attachment mtli_pdf\"><i><span style=\"font-weight: 400;\">Data Source<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Top Ten List Of Fake Steel Products<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Construction Industry Institute (<\/span><a href=\"https:\/\/www.construction-institute.org\/\"><span style=\"font-weight: 400;\">CII<\/span><\/a><span style=\"font-weight: 400;\">) study had found that raw, substandard steel was the most counterfeited commodity among the materials (within the construction industry). Here is the rest of its Top Ten list: (<\/span><a href=\"http:\/\/cdn2.hubspot.net\/hub\/271833\/file-376066134-pdf\/docs\/cost-of-counterfeit-metal-construction-materials.pdf\" class=\"mtli_attachment mtli_pdf\"><span style=\"font-weight: 400;\">Source<\/span><\/a><span style=\"font-weight: 400;\">)<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Steel<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Fasteners<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Valves<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pipe<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Circuit breakers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Rotating equipment parts<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Electric equipment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pipe fittings<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pressure vessels<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Cement<\/span><\/li>\n<\/ol>\n<h3><b>Material Test Certificates (MTC)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The steel industry understands the due diligence needed when requesting Material Test Certificates (MTCs) from suppliers and the ability to meet the required standards. In many cases, steel products are sold with an MTC as a proof of legitimacy.<\/span><\/p>\n<h3><b>When is a MTC fake?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are a number of ways that the industry uses to detect if an MTC is replicated \/ fake. A few key information to look out for on an MTC are the following:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Requested specification will always be specified on the MTC.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Chemical analysis should match the specification requested.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Size requested by the customer.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mechanical properties should match the specification requested.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mill lot and heat numbers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The type of test certificate.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The buyers (stockholder) logo will never be on the mill cert.<\/span><\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10286 aligncenter\" src=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2017\/12\/Quote-1024x378.jpg\" alt=\"\u201cYou get what you inspect, not what you expect\u201d\" width=\"640\" height=\"236\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Performing a PMI<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Anyway, as Louis V. Gerstner Jr, IBM\u2019s chairman from 1993 to 2002 once said <\/span><i><span style=\"font-weight: 400;\">\u201cYou get what you inspect, not what you expect\u201d<\/span><\/i><span style=\"font-weight: 400;\">, therefore the best option, especially when buying critical materials, would be to perform a Positive Material Identification (PMI) on the material.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Positive Material Identification (PMI) is the identification and chemical analysis of various metal alloys through nondestructive methods, like X-ray fluorescence (XRF) and optical emission spectrometry (OES).<\/span><\/p>\n<h3><b>Will be blockchain a game changer?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">More in general, organisations and buyers that purchase products from suppliers are fully aware of counterfeit and fraudulent materials, or should be. They stress that all suppliers must use their approved suppliers lists alongside a counterfeit and fraudulent policy, in order to have full trackability of their products. In most industries the supplier supplying the material must have an international standard in place in order be approved by the organisation or buyers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the long term, some companies are already considering blockchain as a means to counterfeit mitigation, providing the ability to track and trace a design through the full product lifecycle. Blockchain could basically create an environment of trust within the supply chain.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want to have more information about the article or you want to share your opinion with us, contact us at info@steelavailable.com.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Please notice that you might be interested in the other articles we&#8217;ve published:<\/span><\/p>\n<ul>\n<li><b> <\/b><a href=\"https:\/\/www.steelavailable.com\/en\/what-is-a-steel-flange\/\"><span style=\"font-weight: 400;\">What is a Steel Flange?<\/span><\/a><\/li>\n<li><b><\/b><a href=\"https:\/\/www.steelavailable.com\/en\/what-is-steel-forging\/\"> <span style=\"font-weight: 400;\">What is Steel Forging?<\/span><\/a><\/li>\n<li><b><\/b><a href=\"https:\/\/www.steelavailable.com\/en\/open-die-forging-closed-die-forging-whats-difference\/\"> <span style=\"font-weight: 400;\">Open Die Forging and Closed Die Forging &#8211; What&#8217;s the difference?<\/span><\/a><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At<\/span><a href=\"https:\/\/www.steelavailable.com\/en\/\"> <span style=\"font-weight: 400;\">Steel Available<\/span><\/a><span style=\"font-weight: 400;\"> we have implemented a counterfeit and fraudulent policy and we are continuously improving our procedures to prevent counterfeit and fraudulent materials getting through to our customers. At the same time we are developing our Steel Available approved suppliers list.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For any case in which a third party inspection is required, we have partnered with<\/span><a href=\"http:\/\/www.sgsgroup.com.hk\/\"> <span style=\"font-weight: 400;\">SGS<\/span><\/a><span style=\"font-weight: 400;\">, who are world leading company in inspection, verification, training, testing and certification.<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>\uc8c4\uc1a1\ud569\ub2c8\ub2e4, \uc774 \uae00\uc740 English \ub85c\ub9cc \uc9c0\uc6d0\ud569\ub2c8\ub2e4.Counterfeit alert! Counterfeit products are fakes or unauthorized replicas of the real product. They are [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":10283,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":"","_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"categories":[404,395],"tags":[621,612,639,618,633,630,604,605,335,307,611,628,613,464,499,606,608,609,498,614,615,617,619,620,616,627,634,636,622,638,252,637,456,540,631,610,233,623,137,181,626,607,625,624,629,632,306,635],"class_list":["post-10282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expertise","category-industry-news","tag-aerospace","tag-affect","tag-blockchain","tag-bloomberg","tag-cement","tag-circuit-breakers","tag-counterfeit","tag-counterfeit-steel-is-a-big-worry-in-the-industry","tag-electric","tag-explanation","tag-fake","tag-fasteners","tag-fight-fake-products","tag-fittings","tag-france","tag-how","tag-how-to","tag-how-to-identify-counterfeit-steel","tag-japan","tag-kobe","tag-kobe-steel","tag-kobe-steel-ltd","tag-kobe-steel-video","tag-kobe-video","tag-kobelco","tag-list","tag-mtc","tag-not-what-you-expect","tag-nuclear","tag-performing","tag-pipes","tag-pmi","tag-products","tag-risk","tag-rotating-equipment","tag-saac","tag-sgs","tag-spply-chain","tag-steel","tag-supplier","tag-ten","tag-to","tag-top","tag-top-ten-list","tag-valves","tag-vessels","tag-video","tag-you-get-what-you-inspect"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/posts\/10282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/comments?post=10282"}],"version-history":[{"count":27,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/posts\/10282\/revisions"}],"predecessor-version":[{"id":11211,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/posts\/10282\/revisions\/11211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/media\/10283"}],"wp:attachment":[{"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/media?parent=10282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/categories?post=10282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.steelavailable.com\/ko\/wp-json\/wp\/v2\/tags?post=10282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}