Steel_Industry_Report_Vipul_IMTG.docx

8/15/2019 Steel_Industry_Report_Vipul_IMTG.docx

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IMT Ghaziabad

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Steel Industry (ssignm)nt

Tabl) f Cnt)ntsSteel Industry........................................................................................................ 3

Introduction........................................................................................................... 3

An Overview.......................................................................................................... 3

Apparent steel use..............................................................................................4

Apparent per capita use.....................................................................................5

CHINA.................................................................................................................... 7

Exports I!ports "y C#ina.................................................................................$

%&A'I(................................................................................................................. )*

Exports and i!ports "y %ra+il...........................................................................))

IN,IA....................................................................................................................)-

Exports and i!ports "y India............................................................................)4

&eerences...........................................................................................................)5

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*t))l Industr+

Intrductin 0#e Steel Industry is a ey driver o t#e world6s econo!y. 0#e industry

directly e!ploys over two !illion peoples worldwide alon wit# two !illion

contractors and a"out our !illion people in t#e supportin industries.

Considerin t#e act t#at steel is a ey product supply to industries suc# as

auto!otive construction transport power and !ac#ine oods. 0#us steel

industry is a source o e!ploy!ent or !any peoples. /oreover steel is t#e

!ain !aterial used in deliverin renewa"le enery8 solar tidal and wind.

(n ,v)rvi)- 0#e 9orld Crude Steel production #as increased ro! 77* !illion tonnes in

)$$* to )44: !illion tonne till Nove!"er -*)3 i.e. in two decades t#e production

#as al!ost dou"led. 0#e 5 year CA1& or steel production #as re!ained around

3 to 7 ; w#ic# #as "een a very ood sin. 0#e ollowin rap# s#ows t#e 9orld

Crude Steel production.

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4**

)*) !illion 0onne? t#e SA >7$ !illion tonne?

and t#e India >7- !illion tonne?. C#ina #as increased its s#are in total world

production ro! )5; in -*** to 4$; in -*)3. 0#e reion wise s#are is

represented in ollowin c#arts. 9it# t#e increase in steel production "y C#ina

t#e ot#er countries percentae in world steel production #as allen reatly or

exa!ple @apan percentae #as decreased ro! )-.5-; in -*** to


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C#ina 4$;

@apan 7;

Ot#er Asia ));

Ot#ers till Nov? rld Ttal2 $7) !illion

tonnes

0#ere are various !easures o !easurin steel de!and. One o t#e !ost

oten used !easures is appar)nt st))l us) (*45 w#ic# is expressed in

volu!e ter!s as deliveries !inus net exports o steel industry oods. Anot#er

!et#od ollows AS calculations "ut taes into account c#anes in stoc levels

and !easures r)al st))l us) /*45 deDned as AS !inus net accu!ulation o

stocs. Anot#er !easure used is ttal st))l us) T*456 0S is o"tained "y

deductin net indirect exports o steel ro! AS.

(ppar)nt st))l us)Apparent steel use is t#e use o Dnis#ed steel product. 0#e world6s total

apparent use o steel is rowin at a CA1& o 3.7; since -**


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(ppar)nt *t))l 4s)

,eveloped Econo!ies ,evelopin4

Econo!ies excludin4

C#ina

C#ina ;1rowt#3,evelopedecono!ies

;1rowt#3C#ina

In Millin Tnn)s

Source8 9SA

Asia6s apparent steel usae in t#e year -*)- stood at around


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t#e CIS countries t#e averae was -):.4 up ro! -)).4 in -*)). 2er capita

steel consu!ption in -*)- was -:).) in t#e NA=0A reion up ro! -43.7 in

t#e previous year w#ile it was --$.$ in t#e /iddle East up ro! --).$ in

-*)).

0op )* countries wit# t#e #i#est apparent steel use per capita in -*)- are8

(ppar)nt st))l us) p)r capita In 7g5

Cuntri)s '&1' '&11

Fatar )-75.5 $**.4South Korea ))5$.- )-)3.$

United Arab Emirates )*:$.4 $54.3

0aiwan $-3.7 $33.5

Sinapore $*3.7 $44.5

Lebanon 7)3.7


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C8I!(Accordin to 2eter /arey G0#e larest and !ost inuential !aret in t#e

steel sector is C#ina it is t#e !aret t#at !oves "ot# lo"al steel de!and andsupply.J %ut 0#e C#inese steel sector aced stron c#allenes in -*)- as itrappled wit# lower steel ,e!and overcapacity a ra!ented industry andwea proDt.

0#e C#inese overn!ent ai!s to address t#ese issues and ot#ers suc# asincreased enery cuts increased la"our costs to sti!ulate do!estic productionand decreased raw !aterial availa"ility t#rou# its )-t# =ive Bear 2lan. C#inaannounced a taret plan o 7; 1,2 rowt# durin t#e )-t# =ive Bear 2lan periodand is ai!in to develop sta"le econo!ic rowt# alonside a structural c#anein t#e econo!y. In ter!s o steel t#e plan ocuses on pro!otin t#e use o !odern tec#noloy enery eKciency and i!prove!ent in product Luality.

0#e steel production "y C#ina #as rown at a CA1& o )3.$) ; w#ic# is arreater t#an t#e worlds steel production CA1& o 5.-$;. In t#e year -**3 C#inaproduced --.$*; o t#e total world steel production w#ile in t#e year -*)3 itproduced around 4$.4*; o t#e total world steel production. 0#e ollowin rap#s#ows t#e !ont#ly production "y C#ina in t#e year -*)3.

) - 3 4 5 < 7 : $ )* ))5$


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China d)mand"suppl+ balanc)

In Millin Tnn)5 '&&3

'&&%

'&&:

'&&;

'&&#

'&&$

'&&<

'&1&

'&11

'&1'

2roduction --- -73 35< 4-) 4$* 5)- 577


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NipponSteel

@apan %aosteel 1alvani+ed steel

N

%eaertSA

%eliu! inyu Iron

and steel

5*; stae advanced

coatin

2recisionCastparts

S Ban+#ouC#endeSteel 0u"e

4$; stae laredia!eterinterconnect pipe or coalDred power plants

Arcelor/ittal

(uxe!"our

Hunan alinIron and Steel1roup

):.$$; stae steeltec#noloy procure!entand !aretin

Source8 !erer !aret %aosteel co!pany we"site

,urin t#e ))t# =ive Bear 2lan C#ina did not !ae siniDcant proress inreducin t#e use o o"solete tec#noloy #owever t#e country6s steel sector #as

increased its adoption o new tec#noloies to i!prove t#e eKciency o its newplants. (are C#inese players suc# as %aosteel and ot#ers #ave entered incolla"oration wit# lo"al steel!aers suc# as Arcelor/ittal and Nippon Steela!on ot#ers to adopt t#e latest tec#noloies and ain current tec#nical now#ow. =or exa!ple C#inese steel!aers are looin to adopt new tec#noloiessuc# as Corex =inex and I0!3 to reduce t#e dependency on !etallurical coalor uture proects.In addition a nu!"er o C#inese steel!aers now #ave t#e tec#noloy toco!pete wit# @apanese !anuacturers in relation to t#e production o #i#Luality steel products.

E>prts and Imprts b+ ChinaExports ro! C#ina will continue to #ave an i!pact on lo"al producers.

Alt#ou# C#ina is t#e world6s larest exporter o steel its indirect steel exportsaccounted or only )*.); o t#e country6s total annual steel production in-*)).Exports o steel ro! C#ina to ot#er steelproducin countries suc# as%ra+il and t#e S i!pose a ceilin on do!estic prices. 0#e ePect on do!esticprices in ot#er steelproducin countries will depend #owever on t#e types o steel "ein exported ro! C#ina.

C#ina #as "een exportin steel to al!ost every reion in t#e lo"e AsiaArica A!ericas Europe and /iddle East. 0#e country6s rowt# !odel #as "eento invest in inrastructure to create de!and and o"s. 9#en C#inese do!esticde!and is low do!estic steel !ills exports to ot#er !arets. Steel!aers in t#e

i!portin reions #ave "een at t#e receivin end o t#is trend as t#ey are otenuna"le to co!pete wit# overn!entsu"sidi+ed c#eap C#inese steel.

Increased exports ro! C#inese co!panies will increase co!petition orlo"al steel!aers or export !arets. Europe and t#e /iddle East are ani!portant steel export !aret or steel!aers ro! t#e Co!!onwealt# o Independent States >CIS? as well as C#ina. Asian countries ot#er t#an C#inaaccount or al!ost twot#irds o all @apanese steel exports. 0#is reion is also t#elarest C#inese export !aret. Steel!aers ro! t#ese reions would ace !uc#co!petition ro! C#inese steel!aers as t#e latter Dnd do!estic de!andstanatin and loo or export !arets.A urt#er decline in C#ina6s do!estic steel de!and will !ae t#e export trade!ore pronounced.

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-**- -**3 -**4 -**5 -**< -**7 -**: -**$ -*)* -*))

*

)*

-*

3*

4*

5*


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@an =e" /ar Apr /ay @un @ul Au Sep Oct Nov

-.3

-.4

-.5

-.<

-.7

-.:

-.$

3

3.)

)-3

)-<

)-$

)3-

)35

)3:

?razil9s *t))l 0rductin in '&13

%ra+ilMs 2roduction 9orldMs production

Source8 9SA

%ra+ilian crude steel production in Drst )) !ont#s o current year

a!ounted to 3).5- !illion tons. %ra+ilian steel !aer produced -.7) !illion ton

o crude steel in t#e !ont# o Nove!"er -*)3. =ollowin ta"le ives t#e de!and

supply "alance o steel in %ra+il.

?razil d)mand " suppl+ balanc)

In Millin Tnn)5 '&

&3

'&

&%

'&

&:

'&

&;

'&

'&

&$

'&

&<

'&

1&

'&

11

'&

1'2roduction 3) 33 3- 3) 34 34 -7 33 35 35

Consu!ption ): -* )$ -) -5 -7 -) -$ -: -:

Oversupply )3 )3 )3 )* $ 7 < 4 7 7

0#e de!and o steel is not increasin proportionately in %ra+il despite ot#e act t#at overn!ent announced incentive o raisin t#e i!port tariP in-*)-. However t#e !easures suc# as a drop in electricity prices t#einrastructuralQloistics pacae announced "y t#e overn!ent and events suc#as t#e 9orld Cup and t#e -*)< Oly!pics 1a!es will support t#e recovery osteel de!and in %ra+il. 0#us t#e pro"le! o oversupply can reduce in uture.

I/0 1#a+ia"ad 21,/ -*)3)5 2ae )-


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)*)-

)4)<

):-*---4-<

-:3*

4*.*

prts " Imprts b+ ?razil 3 In millin Tnn)5

Indirect I!ports o. Steel

Indirect Exports o. Steel

Indirect Net Exports o. Steel

Source8 9SA

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I!BI(India6s steel industry #as rown a"out )*; per year ro! -7 !illion

tonnes in -**) to 7- !illion tonnes in -*)3 >till Nove!"er?. Accordin to t#e

2lannin Co!!ission o India t#e country6s steel production is expected to row"y around -*)))- to -*)


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overn!ent #as launc#ed !any road invest!ent prora!s na!ely t#e NationalHi#ways ,evelop!ent 2roect >NH,2? and 2rad#an /antri 1ra! Sada Boana>2/1SB? to increase t#e connectivity o roads to ports and plant sites.

Indian &ailways #as an a!"itious invest!ent plan to invest SR3-:"t#rou# -*-* under its ision -*-*6 prora!. ision -*-* plans !assivecapacity au!entation to !eet traKc de!and and i!prove saety andoperational eKciency. 0#e orani+ation6s plan is to invest around SR4-.


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India d)mand " suppl+ balanc)

In Millin Tnn)5 '&&3

'&&%

'&&:

'&&;

'&

'&&$

'&&<

'&1&

'&11

'&1'

2roduction 3- 33 4< 4$ 53 5:


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-**- -**3 -**4 -**5 -**< -**7 -**: -**$ -*)* -*))

*.***

).***

-.***

3.***

4.***

5.***

).**

*.5*

*.**

*.5*

).**

).5*

Indir)ct E>prts " Imprts b+ India In millin Tnn)5

Indirect I!ports o Steel

Indirect Exports o Steel

Indirect Net Exports o Steel

Source8 9SA

/)f)r)nc)sCrisil Research. >n.d.?. &etrieved @an )* -*)4 ro!

#ttps8QQwww.crisilresearc#.co!Q

9ordsteel. >-*)3?. Steel Statistical Yearbook. %russels8 9orldsteel Association.

9orldsteel. >-*)3?. Brazilian indirect trade in steel in 1970-2011. %russels8 9orld

steel association.

Boun E. T. >-*)3?. Global Steel 2013. Ernst T youn.

I/0 1#a+ia"ad 21,/ -*)3)5 2ae )7

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