6 th Asian Stainless Steel Conference 7-9 June, 2011 Shanghai, China. India A Driver of Stainless Steel Growth

Transcription

1 6 th Asian Stainless Steel Conference 7-9 June, 2011 Shanghai, China India A Driver of Stainless Steel Growth Presented by N.C. Mathur Advisor JSL Stainless Ltd. President : ISSDA (Indian Stainless Steel Development Association)

2 Contents.. Evolution of Stainless Steel Global Stainless Steel Scenario Indian Stainless Steel Scenario JSL Profile Watch for 2 Summing up

3 Evolution of Stainless Steel Stainless Steel Chrome Moly. Ni.

4 Evolution of Stainless Steel Axel Fredrik Cronsted (Sweden) discovers Nickel Carl Wilhelm Scheele (Germany) discovers Molybdenum Nicolas-Louis Vauquelin (France) discovers Chromium Eduard Maurer (Germany) is granted a Patent on Austenitic Stainless Steel Henry Brearly (UK) produces Martensitic Stainless Steel Elwood Haynes (US) is granted a Patent on Ferritic Stainless Steel Duplex Stainless Steel are initially produced (Sweden) It took 161 years to produce Stainless Steel, even after the discovery of Nickel 4

5 Global Stainless Steel Scenario

6 Global SS Production 1,000 metric tons 35,000 30,000 25,000 20,000 15,000 10,000 19,167 20,663 22,861 24,583 24,320 28,400 27,836 25,913 24,579 30,687 5, Asia W. Europe/Africa Americas Central + Eastern Europe Source : ISSF 6

7 Global SS Production : Forecasts 45,000 40,000 35,000 ('000 Tons) 30,000 25,000 20,000 15,000 10,000 5, ,225 19,765 21,646 23,486 23,956 24,722 25,736 3,797 4,079 4,222 4,348 4,370 4,414 4,529 4, ,255 8,425 8,019 8,259 8,474 8,516 8,602 8, Total World Tons 31,950 32,918 34,477 36,704 37,415 38,284 39,521 41,388 % Change Y-o-Y 6.60% 3.00% 4.70% 6.50% 1.90% 2.30% 3.20% 4.70% Year 7 27,254 Asi a Americas Africa Europe Asia s Production Forecast is now something different, as China is comingup with Huge Capacities Source : Metal Bulletin Research

8 World Stainless Steel Production Share ( e) 40.00% 35.00% China: Leading the Battle 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Europe Japan China India Noth America Others % 13.50% 26.40% 6.20% 7.70% 17.30% % 13.40% 27.40% 6.10% 7.30% 16.00% % 10.20% 36.40% 6.60% 6.40% 16.60% % 10.90% 26.60% 5.90% 7.20% 25.20% 2011 (e) 23.50% 10.40% 37.70% 6.10% 7.10% 15.20% 8 Source : Tex Report

9 Stainless Steel : A Growing Material Over the last 30 years ( ) 9 Source : ISSF

10 Global Stainless Steel Demand 10 Source : Heinz H. Pariser

11 Global Stainless Steel Recovery In 2010, World Stainless Steel Industry recovers, but China accounts for all the Growth since Source : ISSF

12 Stainless Steel Production Growth ( ) Most of the Stainless Steel Production Growth during the last decade is attributable to S200 and S Source : ISSF

13 Stainless Steel Consumption by Region GDP and Stainless Steel Consumption per capita (2009) 13

14 Stainless Steel Consumption by Region Top 10 Stainless Steel Markets (93% of Total Market) 14 Source: Steel & Metals Market Research

15 China Stainless Steel Update 1. China could have 2.5 Million Ton of Stainless Steel surplus in Crude Stainless Steel output in China will rise 13% to 14 Million Ton in Consumption of Stainless Steel in China will increase to 11.5 Million Ton in Surplus of 2.5 Million Ton China s Crude Stainless Capacity has expanded rapidly, rising to some 19 Million Ton at the end of year China s Stainless Steel Capacity is predicted to reach 21 Million Ton by the end Source : Metal Bulletin

16 Indian Stainless Scenario

17 India : Stainless Steel Melting Production ( ) Austenitic (300 Series) Chrome Manganese (200) Series Ferritic (400 Series) (in '000 Tons) Austenitic (300 Series) Chrome Manganese (200) Series Ferritic (400 Series) Total Source : Heinz H. Pariser

18 India : Macro Economic Overview Projected GDP growth for next 5 8-9% Overall Steel Consumption to grow at 1.2 times GDP Planned Infrastructure Investment for 12 th Five Year Plan ( ) at USD 900 Billion. 18

19 India : SS Growth Drivers 19

20 SS in Railways Railways New Stainless Steel Wagons & Coaches Refurbishing Railway Stations with world class facilities Development of Metro Rail projects and street infrastructure Delhi Metro 20

21 SS in Railways Railways Railway Stations : Cladding, Roofing, Structures, Decoration, Selling Carts, Display Boards, Ticketing Area, Seating Space,Floor Tiles. 21

22 SS in ABC ABC Urban Renewal in the form of Street furniture e.g. Bus Shelters Shopping Malls, organized retail is growing at rapid pace. Modular kitchens Airports 22 Delhi Bus Shelter

23 SS in ABC New age applications in Household Kitchen Applications Bathroom Accessories White Goods Lifestyle Products Interior Decoration SS Modular Kitchen by J-ARC 23

24 SS in ABC Airports Wall Cladding, Roofing, Check in Area, Seating Spaces, Immigration Area, Railings, Display Boards, Lounge, Booths, Duty Free Area, Signage, Decorative, Elevators, Escalators, Travelators, Food Courts. 24

25 SS in Industrial Applications Industrial Applications Power Process Industry 25

26 SS in Auto & white Goods Automotive and White goods India a leading automobile hub in S.Asia, specially for two wheelers and small cars Increase usage of Stainless Steel in exhaust, wheel rims etc. Large middle class driving White Goods market 26

27 SS in Automobile Oil Level Gauge Gasket Wiper Air Bag Inflator Trim Seat Belt Retractor Antenna Exhaust Manifold Front Pipe Convertor Wheel Cap Flexible Pipe Center Pipe 27 Tail Pipe Muffler

28 Indian Automotive : Growth Prospects 35,000,000 30,000,000 Source : FICCI Nov mill 25,000,000 20,000,000 15,000, mill 9.7 mill 11.1 mill 10.8 mill 11.2 mill 10,000,000 5,000, Passenger Vehicle Commercial Vehicle Three Wheelers Two Wheelers India destined as a major Automotive hub in South Asia. A large manufacturing base for Two wheelers / Small cars / Steel and Stainless Steel components for automobiles. 28

29 What Next?

30 Applications - Arriving shortly ( India ) Bus Body LPG Cylinder Cycle Rim Plumbing Hospital Furniture Water Tanks Modular Toilet in Trains 30

31 Applications - Arriving shortly ( India ) Bicycle Rim & Gas Cylinder 31

32 Applications - Arriving shortly ( India ) Plumbing 32

33 Applications - Arriving shortly ( India ) Storage Water Tank 33

34 Applications - Arriving shortly ( India ) Hospital Furniture 34

35 Applications - Arriving shortly ( India ) Bus Body 35

36 Applications - Arriving shortly ( India ) Modular Toilet in Trains 36

37 But????

38 Challenges Ahead Inadequate Infrastructure Energy, logistics, ports etc. not conducive to growth of manufacturing sector Infrastructure projects subject to delays and financial constraints Budget constraints vs Life Cycle benefits of Stainless Steel Dependence on imports for certain raw material Nickel, SS Scrap, Moly 38

39 JSL : Indian face of Stainless

40 40

41 India s largest and fully integrated Stainless Steel manufacturer in Flat Products Leading global supplier of Precision strips, Razor blade steel and Coin blanks Substantial Market share for high end applications 41

42 Manufacturing Locations HISAR SS Melting / HR 720,000 tpa Cold Rolling 275,000 tpa Special Products and Coin Blank 35,000 ORISSA Ferro Alloys 250,000 tpa Thermal Power Plant 250 MW Coke Oven 430,000 tpa Integrated SS Phase I (by Mid 2011) Capacity 0.8 mtpa Integrated SS Phase II Total Capacity 1.6 mtpa Indonesia 42 VIZAG FeCr 40,000 tpa integrated with Chrome Ore Mines in Orissa INDONESIA Cold Rolling 150,000 tpa

43 Hisar Plant India s largest & fully Integrated SS Plant of 720,000 tpa capacity with Twin Stand Steckel Mill and Cold Rolling Complex. Special Products Complex with facilities for Precision Strips, Razor Blade and Coin Blanks. 43

44 Orissa Plant. 44

45 Orissa Plant 45

46 Orissa Plant Steel Melting Shop. 46

47 Orissa Plant Hot Strip Mill 47

48 Orissa Plant Hot Strip Mill 48

49 Orissa Plant Cold Rolling Division. 49

50 Orissa Plant Cold Rolling Division. 50

51 Watch For!!

52 Changes In the market place.. Railway Increasing ABC applications India as export hub for Metro in major cities Railway Wagons Coach Up-gradation SS usage in Platforms Selective Rebar's Door &Windows Cladding Signage's Street Furniture Fasteners Life Style products Auto Components Appliances Mill Products High Quality Value Added Engineering Products 52

53 Movements In environment RM Price Fluctuations ( Ni, Cr, Scrap ) Grade / Series Substitution in Industry Standardization ( e.g Ikea/ Whirlpool / Electrolux moving to 400 Series ) 53

54 Raw Material : Price Volatility Since 1990 Nickel (key Raw Material for Stainless Steel) trades over a wider Price Range than other base Metals. 54 Source : Metalytics

55 Stainless Steel Raw Material : Price Volatility ( ) Over the last 10 years, Raw Materials Prices and Volatility have increased tremendously. 55 Source : ISSF

56 Summing up

57 Summing Up Indian Stainless Steel Market SS Production will go up to 4 Million Tons by 2015 Overcapacity in the market.. export boost up Double digit growth in SS Consumption ( 10-12% ) ( Growth in SS Consumption is about 1.2 Times GDP ) New applications will emerge very fast Opportunities for business in downstream industries SS will change the face of India 57

58 Summing Up 58

59 Thanks. 59