F

Fabricator
A producer of intermediate products that does not also produce primary metal. For example, a rebar (see Reinforcing Bar) fabricator purchases rebar and processes the material to the specifications of a particular construction project.

FAS 106
An accounting rule established in 1990 that requires companies to change their accounting for the cost of their retirees' future nonpension benefits (life insurance and health services). What were once "pay as you go" or "cash basis" expense items were changed to an accrual basis. Such costs are now recognized during the employees' working years.

When the steel companies shifted to the new accounting rule, most companies charged the "catch-up" to equity in large one-time write-downs as they established the new liabilities on their balance sheets.

FAS 109
An accounting rule for deferred taxes that requires companies to explain within their financial statements the difference between the tax expense found on the income statement and the check actually sent to the Internal Revenue Service (IRS). (This rule superseded FAS 96 and APB 11.)

Some steel companies carry net operating losses (NOLs) on their balance sheets as assets that can be used to offset future taxes. Under the rules of FAS 109, however, a valuation allowance may be recorded to reduce these NOLs unless there is a high probability that they will be used.

Fastmet
A process to directly reduce iron ore to metallic iron pellets that can be fed into an electric arc furnace with an equal amount of scrap. This process is designed to bypass the coke oven-blast furnace route to produce hot metal from iron ore. It is also one of several methods that mini-mills might use to reduce their dependence on high-quality scrap inputs (see Direct Reduced Iron and Hot Briquetted Iron).

Feedstock
Any raw material.

Ferritic
The second-largest class of stainless steel, constituting approximately 25% of stainless production.

Ferritic stainless steels are plain chromium steels with no significant nickel content; the lack of nickel results in lower corrosion resistance than the austenitics (chromium-nickel stainless steels). Ferritics are best suited for general and high-temperature corrosion applications rather than services requiring high strength. They are used in automotive trim and exhaust systems, interior architectural trim, and hot water tanks. Two of the most common grades are type 430 (general-purpose grade for many applications, including decorative ones) and type 409 (low-cost grade well suited to withstanding high temperatures).

Ferroalloy
A metal product commonly used as a raw material feed in steelmaking, usually containing iron and other metals, to aid various stages of the steelmaking process such as deoxidation, desulfurization, and adding strength. Examples: ferrochrome, ferromanganese, and ferrosilicon.

Ferrochrome
An alloy of iron and chromium with up to 72% chromium. Ferrochrome is commonly used as a raw material in the making of stainless steel.

Ferrous
Metals that consist primarily of iron.

Ferrous Alloy
(See Alloy Steel )

Finmet
The process reduces iron ore fines with gas in a descending series of fluidized bed reactors. The reduced iron is hot briquetted.

Finish
The surface appearance of steel after final treatment.

Finishing Facilities
The portion of the steelmaking complex that processes semi-finished steel (slabs or billets) into forms that can be used by others. Finishing operations can include rolling mills, pickle lines, tandem mills, annealing facilities, and temper mills.

Flat-Rolled Steel
Category of steel that includes Sheet, Strip, and Tin Plate, among others.

Flux
An iron cleaning agent. Limestone and lime react with impurities within the metallic pool to form a slag that floats to the top of the relatively heavier (and now more pure) liquid iron.

FOB Pricing
FREIGHT ON BOARD PRICING. Phrase that explains whether the transportation costs of the steel are included. "FOB Mill" is the price of steel at the mill, not including shipping.

FREIGHT EQUALIZATION. A common industry practice when a mill sells steel outside its geographic area; it will assume any extra shipping costs (relative to the competition) to quote the customer an equivalent price to get the business.