The Big Picture Stainless Steel Applications What s hot and what s not?

Transcription

1 Markus Moll Managing Director, SMR GmbH The Big Picture Stainless Steel Applications What s hot and what s not?

2 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel - 1 -

3 Purchasing Manager Index Where do we stand in the business cycle? Index of 50 = Break Even Point EU USA China Germany * below 50 the industry contracts / above 50 it is expected to expand - 2 -

4 European Stainless Steel by End Use Segment Industrial & Heavy Industry 9% Others 2% ABC & Infrastructure 16% Market 2013: 5.6 mill. t Consumer Goods 41% Automotive & Heavy Transport 13% Chemical/Petroc hemical & Energy 19% - 3 -

5 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel - 4 -

6 Consumer Goods + Appliances + High Quality Cookware + Bakery Equipment Furnishing and Jewellery 1% Medical & Pharmaceutical 3% Other Consumer Goods & Medical 3% - Standard Pots & Pans - Kitchen surfaces - Sinks White Goods 18% Small Consumer Appliances 1% Food & Beverage Production 35% Market 2013: 2,280 kt Kitchenware 12% Commercial Applications & Catering 27% - 5 -

7 Consumer Durables Index bases, 2005 = 100% 170% 160% 150% Germany Turkey Europe 6,4 % 140% 130% 120% 1,5 % 110% 100% 90% 2,5 % 80% Source: Oxford Economics - 6 -

8 Catering Index bases, 2005 = 100% 150% 140% 130% 120% Germany Turkey Europe 1,9 % 1,3 % 110% 100% 1,5 % 90% 80% Source: Oxford Economics - 7 -

9 Food & Beverages Index bases, 2005 = 100% 220% 210% 200% 190% 180% Germany Turkey Europe 5,6 % 170% 160% 150% 140% 130% 2,0 % 120% 110% 100% 90% 0,6 % 80% Source: Oxford Economics - 8 -

10 Domestic Appliances Index bases, 2005 = 100% 220% 210% 200% 190% 180% Germany Turkey Europe 7,4 % 170% 160% 150% 140% 130% 120% 4,0 % 110% 100% 90% 80% 70% 1,7 % 60% Source: Oxford Economics - 9 -

11 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel

12 Chemical/Petrochemical & Energy Renewable Power Generation 2% Other Chemical, Petrochemical & Energy 8% + Seabed Factory Equipment (O&G) +/- Still stagnant CPI - Continuous weak Powergen Conventional Power Generation 11% Chemical Industry 52% Market 2013: 1,080 kt Oil & Gas 27%

13 Chemicals Index bases, 2005 = 100% 220% 210% 200% 190% 180% 170% 160% 150% 140% 130% 120% 110% 100% 90% 80% Germany Turkey Europe 5,0 % 2,4 % 1,1 % Source: Oxford Economics

14 Index [2000 = 100%] Baker Hughes Rig Count 200% 190% 180% 170% 160% Europe Total World CAGR ytd 4.5 % 150% 140% 130% 120% CAGR ytd 3.7 % 110% 100% 90% 80% *until July 2014 Source: Baker Hughes

15 Change of Energy Mix until 2022 Bad news Other Renawables 25.1% Other Renawables 26.1% Wind Power 5.2% Fossil Energy 61.8% Wind Power 10.9% Fossil Energy 54.7% Nuclear Energy 7.9% Nuclear Energy 8.4% *EIA Energy Outlook 2013 installed generating capacity Energy Mix* 2013 Energy Mix*

16 Boiler Tube Forecast Good news Advanced USC 0% Ultra Super critical = Special STS grades USC 33% USC 60% 2013: 70 kt 2018: 93 kt SC 67% Super critical = Standard STS grades SC 38% Advanced USC 2% Advanced Ultra Super critical = Nickel Alloys

17 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel

18 Automotive & Heavy Transport Light Transport 1% Other Automotive & Heavy Transport 5% + Truck exhaust systems + Passenger car exhaust Systems, but overstocked supply chain + Stainless Fuel Lines and Sensors + New (high grade) engine valve materials Heavy Transport 20% Market 2013: 710 kt Automotive 25% Exhaust Systems and Tubes (cars and trucks) 49%

19 Production of Cars Index bases, 2005 = 100% 190% 180% 170% 160% 150% Germany Turkey Europe 7,2 % 140% 130% 120% 1,1 % 110% 100% 90% 80% 2,9 % 70% Source: Oxford Economics, IHS

20 Production of Trucks Index bases, 2005 = 100% 140% 130% 120% 0,0 % 110% 100% 0,5 % 90% 80% 70% 60% 50% Germany Turkey Europe 8,3 % 40% Source: Oxford Economics, IHS

21 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel

22 ABC & Infrastructure Other ABC & Infrastructure 8% Elevators 5% Heating, Cooling, Ventilation, Hot Water Systems 8% Water Infrastructure 9% Market 2013: 870 kt + Water Infrastructure + Swimming Pools + Glass to Metal Systems + Thermal Insulation Windows - Public Construction Public Space Architecture 21% Roofing, Cladding & Structures 49%

23 Construction Index bases, 2005 = 100% 190% 180% 170% 160% Germany Turkey Europe 150% 140% 130% 120% 6,2 % 1,8 % 110% 100% 90% 80% 2,2 % 70% Source: Oxford Economics

24 Construction, Residential Building Index bases, 2005 = 100% 170% 160% Germany 6,6 % 150% Turkey 140% 130% 120% 110% 100% 1,5 % 90% 80% Source: Oxford Economics

25 Construction, Non residential Building Index bases, 2005 = 100% 140% 130% Germany Turkey 2,4 % 120% 110% 100% 1,8 % 90% 80% Source: Oxford Economics

26 European Growth Rates of all End Use Segments CAGR in [%] Heavy & Light Transport Appliances Oil & Gas Water Infrastructure Other Automotive Exhausts HVAC Consumer Durables Chemicals Food & Beverage Roofing, Cladding & Structures Catering Power Generation Others 5.0% 4.0% 3.0% Average Growth - All Segments 2.0% Elevators 1.0% 0.0% -1.0% -2.0% Public Space Architecture Refineries -3.0% -4.0% 0 STS Consumption in [mio. t]

27 Table of Contents 1. Stainless Steel End Use Segments Consumer Goods Chemical/Petrochemical & Energy Automotive & Heavy Transport ABC & Infrastructure 2. The Beauty of Stainless Steel

28 The Beauty of Stainless Courtesy of A. Zahner Company Private Residence, Connecticut Black mirror stainless steel, 304 alloy

29 The Beauty of Stainless Courtesy of A. Zahner Company Art Gallery of Alberta. Edmonton, Alberta. Angel hair stainless steel & shadow stainless steel, 316 alloy

30 The Beauty of Stainless Courtesy of A. Zahner Company Eli & Edith Broad Art Museum. Lansing, Michigan. Angel hair stainless steel, 316 alloy

31 The Beauty of Stainless Courtesy of A. Zahner Company Burberry, Chicago, Illinois Physical vapor deposition black mirror stainless steel, 304 alloy

32 The Beauty of Stainless Space Airport in Upham, New Mexico Grade: 304, m² Supplier: Inoxum

33 The Beauty of Stainless Solar Plant in Nevada, liquid salt tanks Grade: 347H, 650 tonnes Supplier: Outokumpu (Degerfors)

34 The Beauty of Stainless Designer Faucet Courtesy of Centro Inox Grade: 304 Supplier: Various

35 The Beauty of Stainless Washroom Courtesy of Centro Inox Grade: 304 Supplier: Various

36 The Beauty of Stainless Designer Kitchen Furniture Courtesy of Centro Inox Grade: 304L, 316 Supplier: Various

37 The Beauty of Stainless Street Funiture Courtesy of Centro Inox Grade: 304, 316 Supplier: Various

38 The Beauty of Stainless Grade: 430 Supplier: Various Recycling Trash Can Courtesy of Centro Inox

39 The Beauty of Stainless Slide Courtesy of Centro Inox Grade: 304 Supplier: Inoxum AST

40 The Beauty of Stainless Climbing Tower Courtesy of Centro Inox Grade: 304 Supplier: Various

41 The Beauty of Stainless Cloud Gate, Millenium Park, Chicago Grade: 316L Proposed cost 6 mill $ - final costs 23 mill $

42 The Beauty of Stainless Atomium, Brussels Grade: 316L Supplier: Aperam

43 The Beauty of Stainless Bilbao Bridge Grade: (Duplex 2205) Supplier: Outokumpu

44 The Beauty of Stainless Bodegas Portia (Winery) Grade: 304, 316 Supplier: Acerinox

45 The Beauty of Stainless Seaside Homes in the Bahamas Grade: 304, 201 Supplier: Millenium Tiles, Chicago

46 The Beauty of Stainless Stainless Steel Wallet Grade: 304, Mesh Supplier: Various

47 The Beauty of Stainless Stainless Steel Swimming Pools Grade: 316, Duplex 2205, 254SMO Supplier: Various

48 The Beauty of Stainless Volant Ski (founded in Colorado, now Atomic - Austria) Grade: MO (420Mo) Supplier: Zapp

49 Any Questions