Jindal Shadeed Iron & Steel Supplying Raw Materials for Tube & Pipe mills in the MENA Region : Trends and Opportunities. 8 th SEP 2014 Abu Dhabi

Transcription

1 Jindal Shadeed Iron & Steel Supplying Raw Materials for Tube & Pipe mills in the MENA Region : Trends and Opportunities 8 th SEP 2014 Abu Dhabi 1

2 Outline of Seamless Pipes Market Jindal Shadeed Iron & Steel Introduction 2

3 GCC : Oil & Gas Based Economy (GCC- Gulf Cooperation Council) MENA Region to % real GDP growth in 2014 (up from 2.7 % in 2013) GCC remains to be Oil & Gas based economy supported by Construction and Infrastructure Growth with a GDP Growth rate of 4.7% in 2014 MENA GDP Growth to continue at a moderate rate of 4-5% average over next 5-7 years as per IMF estimates GCC : Strategic importance due to ~50% of the world s oil reserves. Currently pumping about 15% of world s crude supply. Economy function of Oil / Gas prices Oil Price >70$/Barrel will bring large budget surpluses

4 MENA Oil & Gas Strategic Importance MENA Oil & Gas Proven Reserves : Oil - 56% of World Total reserves 45% of World Oil Exports Gas - 44% of World gas reserves, 20% of World Gas Exports Saudi Arabia : 1 st in Oil Reserves and 2 nd largest Oil Producer, 4 th Largest Gas Reserves Qatar : 3 rd Largest Gas Reserves and Leading gas producer Iraq : 4 th Largest Oil reserves with strong upside potential WEF estimate MENA expected to provide upto 80% in World s growth in energy demand by 2030 Saudi Arabia and Iraq to play a major role. Sources: BP Energy Outlook 2030, OPEC, WEF

5 World Pipe & Tube Market in Million Tons China has driven world capacity growth in last 5 years. World capacity expected to grow at similar rates driven by higher demand for oil & gas exploration. China is producing 50% of world pipe & tube production. Seamless Production in China is more than 60% of world Seamless production Welded Seamless

6 Middle East Region OCTG makes major share of (about 65%) of Seamless pipes applications. MENA remains to be 2 nd largest OCTG importer and Major Line Pipe importer. Seamless Tubular consumption estimated at 2.0 Million ( Mil. Tons of OCTG Mil tons of LP) Expected to reach 2.8 Mil tons by 2020 (1.8-OCTG / 1.0 LP)

7 ME OCTG Controlling Factors Maturing OPEN market with an increased local production. Shortening supply chain with increased local presence. Demand driven by high-end applications and improved service levels. Increased needs for premium connections and Sour grades Stronger ties with National O & G companies with an increased support for Local mills for local content benefits. Increasingly Difficult vendor approvals with NOC/EPCs for new entrants Increased presence of Quality imports from Cheaper origins Competitive pricing from Cheaper imports Quick availability of high-quality raw materials for local manufacturers Logistics capabilities

8 GCC Seamless Mills Seamless Rated Capacities in GCC (~1 Million MT): JESCO Saudi Arabia : ~400,000 MTPA ArcelorMittal Saudi Arabia :~ 600,000 MTPA Current Imports of Rounds (Raw Material) : 100% Longer Lead times and Longer Project Turn-Around times High working capital/inventory requirements due to very specific grades and sizes Raw material accounts for about 75% of the total costs

9 Our Role as Raw Material Supplier Local GCC Mill - Local Content Benefits Shorter lead times with JIT deliveries Past supply-history with the leading international Seamless manufacturers Ability to provide technical support for new grade developments with a support from Parent plant in India.

10 Jindal Shadeed Iron & Steel LLC, 2 MTPA Capacity Sohar Industrial Area, OMAN. 10

11 Jindal Shadeed is part of Jindal Steel & Power Limited (JSPL), India Part of US$ 18 billion diversified O. P Jindal Group with annual turnover of US$ 3.6 billion. HBI plant and Steel Making at Sohar, Sultanate of Oman Largest Steel plant in Oman : 2.0 MTPA (EAF LRF Vacuum Degassing 8 Strand Combi-Caster) EAF : Biggest EAF in GCC region (200 MT) with direct hot charging of HDRI to the furnace at C Plant Supplier : Danielli Italy Own Jetty at Sohar Port with 18 meter draft 11

12 COMBI CASTER : Products One of the World s Largest 8-strand Combi-Caster with 12m radius Rounds Ø 200 mm Ø 220 mm Ø 280 mm Ø 350 mm Ø 406 mm Billets (Square) 130 X 130 mm 150 X 150 mm 160 X 160mm Length : 7 14 M 12-Sep-14 12

13 12-Sep-14 Billet / Round : Grade & Applications Grades/Specifications: API 5L Class A, B, C X42-X80 API 5CT ASTM A 53, ASTM-A-106 EN 10210, EN10216, EN10208, EN10297 Applications : Seamless Pipe / Tubes Flanges / Forgings Rail Wheel Stocks High Carbon, Spring Steels, High-Mn Steels, Free Cutting Steels 13

14 Jindal Steel & Power (JSPL) India Plates for LSAW pipes 14

15 Plate Mill- Angul, India Capacity 1.2 Mil. Ton PA Width 1500 mm 5000 mm Thickness 5 mm 150 mm Key Features of Plate Mill Walking Beam Furnace High-Pressure Descaler MULPIC Plate Cooling Hot Leveller Online Marking Machine Online Ultrasonic Testing Double Side Trim Shear Divide Shear Cold Leveller Online Surface Inspection Heat Treatment Capabilities Normalizing Quenching Tempering Plate Grades : Upto X70 Non-Sour / Sour Services X80 Under Trials 15

16 16

17 12-Sep-14 17