Zinc & Lead. Industry. Correlation of Zinc and Steel Consumption in the global market: 0.96!!!

Transcription

1 inum Banking Cement Commercial Vehicle Cotton & Cotton Ya omponent Business Process Management (BPM) Construction Educat arel Chlor-Alkali CRAMS Crude Oil Gems & J oal Natural Gas Pesticides Power Generation Steel Pa anganese Ore Pharmaceutical Refining & Marketing eight Transport Chlor-Alkali Shipping Wheeler Tyre ewable Energy Sources n Made Fibre Banking Housing Finance Passenger Vehicl Hospital Roads & Highways L Shipbuilding Aluminum nking Express Service Steel Two Zinc Wheeler Gems & Jewellery Express & Service Cr Passenger Vehicle CRAMS otel ads Freight Transport ed September 2013 Sugar Tractor Telecom-Wireless Reta Telecom Tower Two Wheeler Gems & Seed Cotton & Cotton Yarn Tracto Pesticide Natural Gas

2 Zinc is predominantly used by the global steel industry for the purpose galvanizing and hence the demand outlook for the metal is highly co-related to the global steel industry outlook. recovery in the Chinese economy in the latter half CY13 along with the rise in demand from the Euro zone region, which is showing encouraging signals, forms the underlying for the expected growth in zinc demand going ahead. macroeconomic indicators for USA are also showing signs slow but sustainable growth. improvement in USA will further aid the demand for the galvanizing sector globally and in turn will support the global zinc industry. Correlation Zinc and Steel Consumption in the global market: 0.96!!! : Automotive demand will continue to 'lead', while industrial battery segment to add impetus CARE Research believes the automotive battery demand will continue to remain a major demand driver for the global lead industry, with the replacement demand from the industrial battery segment to add further support to the global lead demand. Slowdown in OEM's demand from the emerging economies is more than compensated by the recovery in the global automotive industry especially the United States and the United Kingdom. prices in the near term are likely to trade around its cost curve on the backdrop relatively weak demand environment. strengthening dollar is also likely to keep the prices subdued. However as some mines across the globe is nearing a possible closure, the same is likely to put constraints on the availability ore which then will eventually support the global prices. Cost curve in the short-run; ore availability constraints in the long run to support global prices Galvanizing & die-casting alloy sector to drive the domestic demand for zinc CARE Research expects the demand from the galvanizing as well as the die-casting alloy sector will increase at a modest pace between FY13 and FY18. In comparison to the demand arising from the galvanizing sector, demand from the other end-user segments such as zinc oxides/chemicals, brass and the dry cell industry is expected to increase at a marginally slower pace. As the domestic automobile industry continues to inch ahead on a slippery road, demand from OEM's is likely to remain relatively bleak in the short run. CARE Research expects replacement demand from the automobile industry will continue to drive the domestic lead demand. Domestic Demand from OEM's to be on a back foot; however replacement demand will continue to shine

3 Table Global Outlook Zinc: Demand-Supply : Demand-Supply : Prices Section- I CARE Research's Outlook Domestic Outlook Zinc: Demand-Supply : Demand-Supply State the -Zinc Global Demand-Supply Domestic Demand-Supply Introduction Zinc Processing Domestic Structure Global Structure Regulatory Scenario State the - Section- II Section Zinc SECTION- III Section Consumption on basis Vehicles: FY13 Growth Rate Vehicle by Types Production Cables/wires: FY08-FY13 Primary & Estimated Secondary Production Metal: FY04-FY13 Resources Introduction Zinc Processing Domestic Structure Global Structure Cost & Financial Analysis Global Outlook SECTION- IV Cost and Financial Analysis List Tables SECTION- I CARE Research's Outlook - Price Trends (US $/tonne): CY08 - CY14F Domestic Outlook Steel requirement in various sectors (per km)

4 State -Zinc Table SECTION- II Section Zinc GP/GC Steel Sheets Demand-Supply Scenario: FY08-FY13 Dry cells in India: FY08-FY13 Resources as on Zinc Properties Zinc Mineral Properties State-wise Resources & Zinc Ores in India State wise capacities Zinc Waste Re-processing Units Registered with CPCB & MOEF Major Company-wise Sales Zinc Products: FY08-FY12 Hindustan Zinc Ltd: Smelting Capacities Hindustan Zinc Ltd Mines-Operational Details : FY13 Global Top Zinc Mining Companies Global Top Ten Zinc Mines Global Large Mines Closure: CY12-CY14 Global additions to zinc mine capacity: CY11-CY12 Global Mine Changes State -lead Growth Rate Vehicle by Types Production Cables/wires: FY08-FY13 SECTION- III Section Primary & Estimated Secondary Production Metal: FY04-FY13 Resources Properties Mineral Properties State wise capacities Waste Reprocessing Units Registered with CPCB & MOEF Hindustan Zinc Ltd: Capacity Utilization: Smelters Hindustan Zinc Ltd Mine-wise Resources: FY13 Global Top Mining Companies Global Top Ten Mines Import Policy for, with Duty Structure Cost Analysis HZL Power Plants Capacity: FY13 Global Outlook Zinc: Global Demand Supply Scenario SECTION- IV Cost & Financial Analysis List Graphs SECTION- I CARE Research's Outlook Correlation zinc and steel consumption in the global markets Global zinc consumption: CY07

5 Table Global zinc consumption: CY15E Zinc: Mined & Refined Production:CY08-CY12 Zinc: Refined Production CY12-CY15E : Global Demand-Supply Scenario : Global end use consumption pattern Global lead consumption: CY07 Global lead consumption: CY15E : Mined & Refined Production:CY08-CY12 : Refined Production CY12-CY15E Dollar Index V/s Prices: CY08-CY12 Domestic Outlook Zinc Usage in the domestic market Expected growth in domestic steel demand Zinc Smelting Capacity: FY08-FY18F Zinc- Demand-Supply: FY13-FY18F Zinc- Production-Capacity: FY13-FY18F Sector-wise infrastructure investment in the Tenth & Eleventh Five Year Plan Steel requirement in various sectors (per km) Projected infrastructure investment in the Twelfth Year Plan (FY12-FY17) Usage in the domestic market Expected growth in the automobile industry - Production-Capacity: FY13-FY18F SECTION- II Section Zinc State -Zinc Global Zinc Demand-Supply Scenario: CY03-CY12 Global First Uses Zinc Global End Uses Zinc Zinc Metal Usage/Consumption: CY03-CY12 Country-wise Zinc Metal Consumption: CY08-CY12 Global Zinc Reserves - CY12 Global Zinc Mine & Metal Production: CY03-CY12 Country-wise Zinc Mine Production: CY12 Country-wise Zinc Metal Production: CY08-CY12 Country-wise Zinc Mine Production: CY08-CY12 Zinc Surplus/Deficit & Average Prices: CY03-CY12 Zinc LME Inventory & Prices: CY08-CY12 Annual Average, Highest & Lowest Zinc Prices (LME): CY91-CY12 World Unwrought Zinc Exports: CY06-CY11 Major Unwrought Zinc Exporting Nations: CY08-CY11 World Unwrought Zinc Imports: CY06-CY11 Major Unwrought Zinc Importing Nations: CY08-CY11 China's share in global zinc consumption: CY80-CY12 China's share zinc mine & refined production, consumption: CY00 & CY12 China zinc end-use consumption:cy00 & CY10

6 Table China Zinc Concentrate Import Sources: CY10 Domestic Zinc Demand-Supply Scenario: FY99-FY13 Domestic End-uses Zinc Domestic Consumption: FY99-FY13 Zinc Usage in Galvanizing General Galvanizing Zinc Usage Production- & Zinc Ore: FY01-FY12 Production-Zinc Concentrates:FY01-FY12 Primary Production Zinc Metal: FY99-FY13 Primary & Secondary Production:FY99-FY13 Primary Production-HZL & BZL: FY07-FY13 Exports Zinc: FY99-FY13 Imports Zinc: FY99-FY13 Zinc Average Annual Prices: FY03-FY13 Zinc Average Annual Prices: FY99-FY13 Zinc Smelting Process Zinc Smelting Capacity in India: As on March 31,2013 HZL Reserves & Resources: FY04-FY13 HZL Mined Metal Production: FY02-FY13 Global Company-wise Integrated Zinc production: Fy10 Global Mine-wise Zinc production: Fy10 Company-wise Share in Global Refined Zinc Metal Production: CY09 SECTION- III Section State -lead Global Demand-Supply Scenario: CY03-CY12 Global Reserves: CY12 (in '000 tonnes) Country-wise Mine Production: CY03 & CY12 Country-wise Mine Production: CY12 Metal Production: CY03-CY12 Country-wise Production: CY08-CY12 Surplus/Deficit & Average LME Prices: CY03-CY12 Global End-use Metal Usage/Consumption: CY03-CY12 Country-wise Metal Consumption: CY08-CY12 Global Unwrought Exports: CY02-CY11 Country-wise Unwrought Exports: CY03 & CY11 Unwrought Imports: CY02-CY11 Country-wise Unwrought Imports: CY03 & CY11 Annual Average, Highest & Lowest Prices (LME): CY91-CY12 Average Annual LME Prices: CY91-CY12 China's share in global lead consumption: CY80-CY12 China's share in mined & refined lead production & consumption: CY00 & CY12 China's share in Global Vehicles Production: CY00

7 Table China's share in Global Vehicles Production: CY12 Domestic Metal Demand-Supply Scenario: FY04-FY13 Domestic End-uses Domestic Consumption: FY04-FY13 Industrial Batteries Estimated Market Size : Production Primary Metal: FY04-FY13 Production Concentrates: FY01-FY12 Production- & Zinc Ore: FY01-FY12 Export Refined : FY04-FY13 Import Refined : FY04-FY13 Average Monthly Prices: FY09-FY13 Deposits & mines in India Smelting Process Company-wise Share in Global Refined Metal Production: CY09 Cost Analysis HZL Expenses Structure: FY13 & Fy06 HZL Captive Power Generation: FY07-FY13 HZL Wind Power Capacity: FY07-FY13 SECTION- IV Cost & Financial Analysis

8 Credit Analysis & Research Ltd. (CARE), promoted in 1993 by some the leading Indian banks and financial institutions including Industrial Development Bank India (IDBI), Canara Bank and others is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE's rating methodologies are in line with the best international practices. CARE Research & Information Services (CARE Research)is an independent division CARE. CARE Research services a variety business research needs with credible, high-quality research and analysis on various facets the Indian Economy and Industries. Publications include Reports, Debt Market Review, Budget Analysis and other policy impact analysis and special commentaries on topical issues.care Research fers both subscription-based reports as also customized reports on request. reports by CARE Research provide insightful data and analysis on various industry sectors and CARE's outlook on the same. one-year subscription to the report on ' ' by CARE Research includes access to monthly updates from the date subscription. To view list industries under our coverage you can visit For any queries regarding the content & scope the report kindly reach us at careresearch@careratings.com To place an order, please contact: Manish Sukhija Business Development - CARE Research Credit Analysis & Research Ltd. 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Cell: , Tel.: (Direct), (Board) CORPORATE OFFICE MUMBAI Credit Analysis & Research Ltd. 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai Tel: , Fax: , care@careratings.com 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Tel.: REGIONAL OFFICES AHMEDABAD 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad Tel: Fax: BENGALURU Unit No , 11th Floor, Prestige Meridian II, No.30, M. G. Road, Bangalore Tel: , Telefax: CHANDIGARH 2nd Floor, S.C.O , Sector 34-A, Chandigarh CHENNAI Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai Tel : / Fax: HYDERABAD 401, Ashoka Scintilla, , Himayat Nagar, Hyderabad Tel: Fax: JAIPUR 304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road,Near Collectorate Circle, Bani Park, Jaipur Tel: / 14 KOLKATA 3rd Floor, Prasad Chambers, (Shagun Mall Building), 10A, Shakespeare Sarani, Kolkata Tel: / 02 Fax: NEW DELHI 3rd Floor, B-47, Inner Circle, Near Plaza Cinema, Connaught Place, New Delhi Tel: / / Fax: PUNE 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune Tel: MALDIVES 4th Floor, CHAMPA Center Point, Chandhanee Magu, Male' Republic Maldives. Tel: / Mobile: / Fax: