galvanized steel sheet in an automotive sector as a...

Galvanized steel sheet in an automotive sector as a barometer of Zinc market growthLisbon, October 23, 2014Nicolas RouetAutomotive Marketing, ArcelorMittal Europe – Flat Products

Key contents

ArcelorMittal, a global steel leader

Steel remains material of choice for Automotive industry

And zinc coated material the material of choice

Our Answer to Future Automotive Constraints


Steel remains material of choice forautomotive industry



Our steel – the fabric of life

4

Our strengths

• Proximity to every customer in Europe with an efficient and optimized supply chain network

• Dedicated flexible customer teams focused to manage all the aspects of your business with us (commercial, supply chain, quality, innovation)

• High focus on technical support at all stages of the product life from design, engineering, industrialization to an exemplary after sales service

• Backed by a world-class R&D team offering the largest range of products, steel solutions and simulations

• Efficient, proven steel solutions thanks to our strong partnerships with customers, helping you to address crucial challenges concerning environmental impact, product performance and manufacturing costs

• Our “power of imagination” concept in business development to boost business in good old Europe.

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• We offer all around the world the most advanced steels with: – Consistent mechanical properties resulting from many parameters defined all

along the production process– Different coatings and surface treatments– Systematic comparison of in-use properties of similar products (equivalency

program)

Hot Stamping, AHSS, Deep Drawing steels, Electrical steels and much more…

A worldwide automotive offer

514/05/2014 Metal Bulletin - 18th Zinc & its Markets Seminar

• China, from 1 million in 2000 to 30 millions in 2020 to represent 1/3 Global automotive production• Market recovery expected in Europe, and go back in 2018/2020 to pre-crisis (2007) level• New emerging markets: Middle East – North Africa, ASEAN, Andes• Global platform development

Automotive production continues to grow to reach 100 millions in 2018 with 30% vehicles produced in China


Market recovery in Europe, contrasted evolution. Growth in Spain and Eastern countries. Germany keeps the lead

14/05/2014 8Metal Bulletin - 18th Zinc & its Markets Seminar

In Steel equivalent

Area Trends for material mix in automotive application - BIW

EuropeModerate growth for aluminum for premium vehicles (Audi, Jaguar, BMW) and aluminum already present

Nafta Growth for aluminum pushed by Ford F-150+1,2 Mt capacity till 2020.

Mercosur Steel remains the only material

China Very low growth, steel remains the material of choice

India Steel remains the only material

Russia Steel remains the only material

Japan Steel remains the main choice

9Metal Bulletin - 18th Zinc & its Markets Seminar

Steel remains the materials of choice, despite a growth of Aluminium in Nafta, global growth in automotive production will be in emerging countries in which steel is predominant

Source: Ducker Worldwide, Aluminum and Magnesium Industry analysis - 08-31-2010 & Light Vehicle Metals Market Analysis and Forecast - 06-12-2012

2012 8,3%

2015 10,7%

2020 16,1%

2012 5,1%

2015 5,3%

2020 4,7%

2012 54.6%

2015 49.3%

2020 42.2%

Source: Novelis presentation to 3rd annual aluminum outlook conference, Chicago, June 2010Bumper beams FY12: 2,6%

Chassis, Suspensions & Steering FY12: 12,1%

Closures FY12: 3.2%

Heat exchangersFY12: 9.2%

Wheels FY12: 19.8%

Brakes FY12: 2.5%Engines FY12: 54.6% Transmission & Driveline FY12: 12.8%

BIW structure FY12: 2.5%

Heat shields FY12: 2.4%Others FY12: 2.4%

2012 31,9%

2015 34,7%

2020 36,9%


Aluminum in automotive

Weight of new Peugeot 308 BIW is decreasing by 70 kg: 20 kg linked to AHSS; 5 kg linked to alternative materials but 45 kg linked to optimized design, resizing of the car and advanced assembly process

Optimized design and improved assembly process will also lead to steel intensity reduction

-33 Kilos/veh


Reduction in steel intensity due to lightweight steel solutions, alternative materials and design improvement

ArcelorMittal continues to respond to demanding regulations offering affordable and safe lightweight solutions

ArcelorMittal continues to respond to demanding regulations offering affordable and safe lightweight solutions

Powertrain efficiencyand weight reduction,2 main driversto reach C02 target

Europe already at 127 g CO2/km in 2013 and 15% vehicles registered in 2013 below 100 g CO2/km


Global regulation as main driver on weight reduction target Ambitious target for the next 5 to 10 years

Weight reduction in kg (Veh segment B)

Usibor®

1500 (included in wet zones)

0

10

20

30

40

60

70

80

90

Usibor® 2000, Low density Duplex,

FeTiB2

2015 2020

2015 20202013

MS1500TRIPDUAL Usibor® 2000

T5.0

FeTiB23rd generation AHSS (Fortiform®)

Upgrade with AHSS (TRIP800,

DP1180…)

• Integration of functions

• More ambitious 3rd generation AHSS (forfiform ®)

Target 2020 -100kg

Target 2015 -50kg

Requires new solutions

Reachable with existing steel solutions (in particular massive use of hot stamping

Product development portfolio

MS1500, Usibor®

1500, Ductibor®

500, door-ring,

openings frame

Typical alignment of ArcelorMittal’s product development with OEM weight saving objectives

31% BIW + Closures

weight decrease

in this extreme

case!


Continuous innovation in steel grades allows continuous weight reduction opportunities for OEMs

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quotes from Volkswagen and Volvo

“Volkswagen is using high strength steels in increasing amounts. It is a very cost effective way of reducing weight. Using new innovations in steel engineering… it is possible to reduce weight without the use for more costly materials such as aluminium and carbon fibre.”

Armin Plath, VW’s Head of Materials Research and Manufacturing

“Volvo prefers boron steel to aluminum because of the strength properties and the added safety in a crash”

Peter Mertens, senior vice president of research and development for Volvo.

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Source: Article “Volkswagen Replaces Aluminium With Steel To Save Weight And Money” , written by Bertel Schmitt on January 24, 2013 for the Truth About Cars website.


Pure zinc

Pure aluminium

100

55

5 GALFAN

ALUZINC®

ALUPUR®

HDG – EXTRAGAL®EG

wt% Al

wt% Mg

wt% Fe

10 GALVANNEALED

wt% Si10ALUSI®

Al > 50%

Zn > 50% ZAGNELIS®

MAGNELIS® 3.7

3


95% auto

coating

Coating : for automotive applications 95% volumes are pure zinc

% of coated materials in Body in White

• In Europe, ratio at high level and remains at this level

• In emerging countries, coated materials is increasing pushed by global platform programmes, limited in India due to cost pressure

• In China, the ratio is constrainted by capacity and by JapaneseOEMs’ policy to avoid using coated materials for some exposed parts

Source: ArcelorMittal Europe, Automotive marketing


Automotive coated materials are increasing in all emerging countries

CW (g/m²) %Zn coating Current Trend

Steels for Cold Formed Parts

100, 140 100% GIAlmost all market of

coated steel for Auto BiW

Surface improvements for compliance to new painting systems and improvement of

manufacturing conditionsZn Coating weight reduction is marginal

90 10% GA

70, 90, 120 93,3% ZnMgAl Starting Development for optimizing functional cost. 2 kilos zinc saved on one vehicle.

120 0 AlSi Specific (Exhaust, engine area)

AlSi remains on specific applicationsNo trend in market for a new 0 zinc coating

Steels for Hot Stamping

140 to 180 100% GI Marginal AlSi will remain main coatingLimited growth of GI or potential evolutions

towards new coatings which composition may contain Zn

80, 150 0 AlSi Almost all market

Coating Code

Market Trend

CoatingShift

Impact on Zn Content

Electro-Galvanized ZE Z none

Hot Dip Galvanized Z ZM Mainly 100 g/m2, remaining carmakers to switchfrom 140 g to 100 g

Hot Dip Galvannealed ZF none

Zagnelis® ZM Reduction of Zn by 20% to 40% on GI displaced

to ZM

Alusi® AS Displacement of Zn coated Cold formed parts to

No Zn Hot formed parts


Coatings trends in automotive market:Alsi and ZnMgAl to growth

BodyShop

Paint Shop Vehicle lifePressShop

Improvement need in Stamping ability & adhesive bonding

Evolutions in painting processes• Substitution of phosphatation• Compact paint Systems

Ready: Ultragal®Under study: Improved EG surface

Corrosion Protection

Ready ZnMgAl unexposed on normal gaugeAlmost ready ZnMgAl on heavy gauge (non AHSS)Industrial trials: ZnMgAl exposed

Reduce friction issuesReduce zinc abrasion/galling

Paint aspect for exposed pannels

Improved corrosion behaviour in critical zones

Ready: NIT on GI and EGPositive impact ZnMgAl


The challenges for coatings in automotive industry


Metallic coatings for industry marketOverview

Surfaceprotection

Edge andscratch

protection

Outdoorexposure

performances

Aspectdurability

Bendingand

profiling

Temperatureresistance

Solar heatreflectivity

Hot DipGalvanised + ++ + ++ ++ + +

Galfan ++ +++ ++ + +++ + +

Aluzinc® +++ + +++ +++ ++ ++ +++

Alupur® ++++ (flat)+ (deformed)

+ ++ ++++ (flat)+ (deformed)

+ +++ +++

Magnelis® ++++ ++++ ++++ + ++ + +

Performance rating from low (+) to very high (++++)Performance rating from


Metallic coating range for industryKey properties for outdoor usage

SurfaceProtection(unpainted)

Protection (painted)

AspectDurability

(unpainted)

Aspect(post-

painted)

Coatingformability

ElectricalResistance

welding

Temperatureresistance

Electrogalvanised + +++ ++ +++ ++ +++ +

Hot DipGalvanised + +++ ++ +++ ++ ++ +

Galfan ++ +++ + +++ +++ + +

Aluzinc® +++ +++ +++ +++ ++ + ++

Alusi® +++ +++ ++ + + + +++

Alupur® - - - - - - ++

Performance rating from low (+) to very high (++++)


Metallic coating range for IndustryKey properties for indoor usage

Coating Code

Market Trend

CoatingShift

Impact on Zn Content

Electro-Galvanized ZE Z More Zn/m² (x3)

Hot Dip Galvanized Z ZM Less Zn/m² (÷2)

Galfan ZA / ZM Less Zn/m² (÷2)

Aluzinc® AZ / ZM More Zn/m² (x2)

Magnelis® ZM Batch Less Zn/m² (÷3)

Alusi® AS No Zn

Alupur® AL No Zn


Metallic coating range for IndustryMarket Trend (EU scope)

galvanized steel sheet in an automotive sector as a...

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