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Commodities ManagementCommodities Management

:Submitted By:Submitted ByAnkitha SingviAnkitha SingviArvind BaggaArvind BaggaGaurav LakhvaniGaurav LakhvaniNamishaNamishaChaudhryChaudhrySakshiSakshi ChopraChopraShraddha RanaShraddha Rana

Topic ofTopic of:Presentation :Presentation

SteelSteel

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AgendaAgenda

.1.1 Extraction of Iron and SteelExtraction of Iron and Steel

.2.2 &Different Forms of Iron Steel&Different Forms of Iron Steel

.3.3 Top 10 Steel producing countriesTop 10 Steel producing countries

.4.4 World Steel production scenarioWorld Steel production scenario

.5.5 World Trade of SteelWorld Trade of Steel

.6.6 Global Steel demand and supplyGlobal Steel demand and supply

.7.7 India s Position in world trade of Iron and SteelIndia s Position in world trade of Iron and Steel Growth

Pattern.8.8 ( )Major Players in the Industry PSU and Non PSUs \( )Major Players in the Industry PSU and Non PSUs \.9.9 Consumption PatternConsumption Pattern.10.10 Steel Demand DriversSteel Demand Drivers.11.11 Government PoliciesGovernment Policies.12.12 Price Trends and Influencing FactorsPrice Trends and Influencing Factors

.13.

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Competition from Substitutes

Competition from Substitutes

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Extraction of Iron and SteelExtraction of Iron and SteelTwo Most Common Forms ofTwo Most Common Forms of

Iron OresIron Ores( )Haematite Fe2o3( )Haematite Fe2o3( )Magnetite Fe3o4( )Magnetite Fe3o4

:Process of Blast Furnace:Process of Blast Furnace

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Cast IronCast IronDuctiDuctileleIronIron

PuddlePuddleIronIron Low Carbon SteelLow Carbon SteelMild SteelMild Steel

&ifferent Forms of Iron Stee&fferent Forms of Iron Stee

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HotHot RolledRolledColdColdRolledRolledBilletBilletss &Bars &BarsRodsRodsStructurStructuree Rails andRails andWiresWires

ToolToolSteelSteelHeatHeatResistResistantantSteelSteel

CorrosioCorrosionnResistanResistant Steelt Steel

ocessed Form Product Segmentocessed Form Product Segment

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10 Steel Producing Countries10 Steel Producing Countries

Rank Country 2009 2008 %Change(2009/2008)1 China 567.8 500.3 13.5

2 Japan 87.5 118.7 -26.3

3

Russia 59.9 68.5 -12.5

4 US 58.1 91.4 -36.4

5 India 56.6 55.1 2.7

6 South Korea 48.6 53.6 -9.4

7 Germany 32.7 45.8 -28.7

8 Ukraine 29.8 37.3 -20.2

9 Brazil 26.5 33.7 -21.4

10 Turkey 25.3 26.8 -5.6

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Crude Steel ProductionCrude Steel ProductionWorldwideWorldwide

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Steel Mill ProductsSteel Mill ProductsExportersExporters

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Major SteelMajor SteelImportersImporters

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Iron Ore TradeIron Ore Trade

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Trade of Scrap

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Steel Supply and Demand

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Major Steel Producing CompaniesMajor Steel Producing Companies

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Trading Centers for SteelTrading Centers for Steel

London Metal ExchangeLondon Metal Exchange

The LME provide a single reference price forThe LME provide a single reference price for

steel billet, enabling improved risksteel billet, enabling improved riskmanagement for the global steel industry.management for the global steel industry.

10 million tonnes of steel have been traded at10 million tonnes of steel have been traded at

the London Metal Exchange (LME) year-to-the London Metal Exchange (LME) year-to-date in 2010 (equivalent to 153,977 lots),date in 2010 (equivalent to 153,977 lots),the first time this milestone has beenthe first time this milestone has been

reached in a single calendar year.reached in a single calendar year.

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s Position in world trade of Iron and Ss Position in world trade of Iron and S

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222 MoUs have been signed by222 MoUs have been signed by.various States with capacity 275 5.various States with capacity 275 5.Mn tonnes and Inv of US $ 229.Mn tonnes and Inv of US $ 229BillionBillion

India fifth LargestIndia fifth Largestproducer of crudeproducer of crude( )steel 2008 with( )steel 2008 with.capacity of 54 5.capacity of 54 5billionbillion

India emerged asIndia emerged asnet Importer ofnet Importer of- ,Steel in 2008 09- ,Steel in 2008 09Net consumptionNet consumption- . ( .40 997 Mn Inc of- . ( .40 997 Mn Inc of. %)7 8. %)7 8

Country s Steel ScenarioCountry s Steel Scenario

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Indian Steel in Global ContextIndian Steel in Global Context

Production has been Sustained despite Global Economic MeltdownProduction has been Sustained despite Global Economic Meltdown

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Growth Pattern

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Steel Demand in IndiaSteel Demand in India

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( )Major players PSU( )Major players PSU

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( )Major Players Private Sector( )Major Players Private Sector

C ti P tt f St lC ti P tt f St l

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Consumption Pattern of SteelConsumption Pattern of Steel/C o n su m p tio n p a tte rn o f lo n g fla t p ro d u cts a n d p e r/C o n su m p tio n p a tte rn o f lo n g fla t p ro d u cts a n d p e r

ca p ita ste e lco n su m p tio n a re g o o d in d ica to rs o f aca p ita ste e lco n su m p tio n a re g o o d in d ica to rs o f a

.n a tio n s d e ve lo p m e n t

.n a tio n s d e ve lo p m e n t

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Steel Demand DriversSteel Demand Drivers

:Strong Economic Growth:Strong Economic Growth

: ,Urbanization Housing urban: ,Urbanization Housing urban-infrastructure such as over-infrastructure such as over

, .bridges mass transport systems, .bridges mass transport systems

Massive government efforts toMassive government efforts to

create transport and industrialcreate transport and industrial:infrastructure the Government:infrastructure the Governmentis expected to invest $514is expected to invest $514

billion on infrastructure bybillion on infrastructure by.2012.2012

Private Sector Investment isPrivate Sector Investment is% .growing at above 15 annually% .growing at above 15 annually

Foreign Investment of nearly 40Foreign Investment of nearly 40billion dollar committed inbillion dollar committed in

.steel sector.steel sector

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N a tio n a l S te e l Po licy 2 0 0 5N a tio n a l S te e l Po licy 2 0 0 5

T h e 2 0 0 5 N a tio n a l S te e l Po licyT h e 2 0 0 5 N a tio n a l S te e l Po licy( )Government of India 2005 sets out( )Government of India 2005 sets outth e In d ia n G o ve rn m e n t s v isio n fo rth e In d ia n G o v e rn m e n t s v isio n fo r

.th e fu tu re o f th e ste e l in d u stry.th e fu tu re o f th e ste e l in d u stry

Th e cen tral g oa l of crea tion isTh e cen tra l g oa l of crea tion is A nAni n d u s t r y w i t h 1 1 0 m i l l io n t o n n e si nd u s t r y w i t h 1 1 0 m il l i o n t on n e so f ca p a c i t y a n d 1 0 0 m i l l i o no f c a p a c i t y a n d 1 0 0 mi ll i o n

-t o n n e s o f p ro d u c t i o n b y 2 0 1 9 2 0-t on n e s o f p r o d u c t i o n b y 2 0 19 2 0 i mp l yi n g an a ve r ag e g ro w t h i n i m p ly i n g a n a v e ra g e gr o w th i n

p r o d u c t i o n of n e a r l y 7 p e r c e n tp ro d u c t i on o f n e ar ly 7 p e r c e n t. a y e a r . a y e a r

The Indian Ministry of Steel estimatesThe Indian Ministry of Steel estimatesthat achieving this goal will requirethat achieving this goal will require

an extra US$65 billion in capitalan extra US$65 billion in capitalexpenditure in addition to funds forexpenditure in addition to funds for

technology upgrades at existingtechnology upgrades at existing.facilities.facilities

Government PoliciesGovernment Policies

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National Policy Facilitates toNational Policy Facilitates toT h e p o licy fo cu se s o n th eT h e p o licy fo cu se s o n th e

d o m e stic se cto r b u t a lsod o m e stic se cto r b u t a lsoe n v isa g e s a ste e l in d u s trye n v isa g e s a ste e l in d u s try

g ro w in g fa ste r th a n d o m e sticg ro w in g fa ste r th a n d o m e stic,co n su m p tio n w hich w ill e n a b le,co n su m p tio n w h ich w ill e n a b le

e x p o rt o p p o rtu n itie s to b ee x p o rt o p p o rtu n itie s to b ere a lise dre a lise d Institutional and Policy SettingsInstitutional and Policy Settings

.I.I A llo w in g Priv a te O w n e rsh ipA llo w in g Priva te O w n e rsh ip

a n d Fore ig n In ve stm e n ta n d Fo re ig n In ve stm e n tII..III.III Im p ro v in g In te lle ctu a lIm p ro v in g In te lle ctu a l

Property Law sProperty Law sIV.

.V.V D e re g u la tio n o f Pricin g a n dD e re g u la tio n o f Pricin g a n d

D istrib u tio n o f Iro n a n dD istrib u tio n o f Iro n a n dSteelSteel

VI.

.V II.V II C u sto m s Po licyC u sto m s Po licyVIII.

.IX.IX S p ecial E con om ic Z on esS p ecial E con om ic Z on esX.

.X I.XI S p e cia lIn ve stm e n tS p e cia l In ve stm e n t

&Price Trends Influencing Factors&Price Trends Influencing Factors

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&Price Trends Influencing Factors&Price Trends Influencing Factors

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Competition From SubstitutesCompetition From Substitutes

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