indian stainless steel market 30th september 2013 · • escalators, elevators • claddings •...

Annual Forward looking SessionIndian Stainless Steel Market

30th September 2013

Presented by :N.C. Mathur

President : Indian Stainless Steel Development Association (ISSDA)

Contents…..

Global Stainless Steel Scenario

Indian Stainless Steel Scenario

Stainless Steel Show Case : Delhi Metro

Stainless Steel Growth Drivers in India

Watch For…

Summing Up++

2

Global Stainless Steel Scenario

3

19,187 20,690

22,84024,570 24,546

+7.6% -0.1%+10.4%+7.8%-1.0%

28,706

+16.9

28,146

-2.0%

26,218

-6.8% -5.0%

24,904

+24.9

31,094

33,621

+5.2

35,363

n/a

* Major correction of Chinese figure for 2011, therefore not comparable with previous years

Stainless Steel Crude Production

4

Stainless Crude Steel Production(By Categories)

Source: ISSFNote: Due to major corrections of Chinese figures since 2011 not fully comparable with 2010, for CrMn steels in particular

(%)

5

Regional Share of Stainless Steel Production

Source: ISSF 6

Year 2005 Year 2012

Stainless Steel …. a Growth Material

Source: ISSF

Compound Annual Growth Rate of major metals (%/year): 1980 ‐ 2012

7

Indian Stainless Steel Scenario

8

Crude Stainless Steel ProductionWorld Vs. Share of India

(Million Tons)

(Period)

9

Stainless Steel Melt Production : India

421 463 509 560727 790 775 862

1396 1458 1524 14501688 1750

18952088

18171921

2033 2010

24152540

2670

2950

0

500

1000

1500

2000

2500

3000

3500

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010 2011 2012

('000

tons)

('000

tons)

Long Products Flat Products Total

10

Stainless Steel Mill ProductsProduction Trends : India

(‘000

tons

)

11

Stainless Steel Consumption by End UseIndia

Flat Products : Year 2012

Long Products : Year 2012

12

Projected Apparent Consumption of Stainless Steel in India

413 455 504 558 617 683 756 838 928 1028 1138

2006 2160 2334 2527 27372967

32173491

37944122

448024192615

28383085

33543650

3973

4329

4722

5150

5618

0

1000

2000

3000

4000

5000

6000

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

('000

tons)

('000

tons)

Long Products Flat Products Total

13

Market ShareFlats : 80%Longs : 20%

Projected Regional Stainless Steel Consumption in India

14

Opportunities in Indian Infrastructure Structure

India plans to spend US$1 Trillion on infrastructure in next five years.

Indian airports require investments worth US$13 billion in next fiveyears; private sector to contribute US$10 billion.

Highways sector will attract investments worth US$123 billion in next5 years.

US$300 billion planned to be spent on upgrading rail infrastructure(including new rail lines, double/multiple lines, high‐speed rail) by2020.

Around $55 billion worth investments planned in major and non‐major ports by 2020.

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16


17


18


19


20


21


22

SS Growth Drivers in India

23

ABC• SS roofing sheets• Decorative and color

coated SS• Street furniture • Escalators, elevators• Claddings• Railings• Airports• Railway station up

gradation

ART•Luxury Bus bodies

•Auto chassis, trims, suspension parts, fuel tanks, catalytic convertors

•Railway wagons and coaches•Metro coaches

Process & Engineering• Nuclear grade SS for

fuel containment and waste handling

• Super critical boilers in power plants

• Water treatment and drinking water supply

• Desalination applications

Consumer Durables• India as hub for white

goods manufacturing

• SS used as components

SS Growth Drivers in India

24

Railways• New Stainless Steel

Wagons & Coaches

• RefurbishingRailway Stationswith world classfacilities

• Development ofMetro Rail projectsand streetinfrastructure

Delhi Metro

25

Stainless Steel in Railways

RailwaysRailway Stations : Cladding , Roofing , Structures , Decoration , Selling Carts , Display Boards , Ticketing

Area , Seating Space ,Floor Tiles ….

Railway Stations : Cladding , Roofing , Structures , Decoration , Selling Carts , Display Boards , Ticketing

Area , Seating Space ,Floor Tiles ….

Stainless Steel in Railways

26

ABC• Urban Renewal in

the form of Streetfurniture e.g. BusShelters

• Shopping Malls,organized retail isgrowing at rapidpace.

• Modular kitchens

• AirportsDelhi Bus Shelter

27

Stainless Steel in Architecture, Building & Construction (ABC)

SS Modular Kitchen

New age applications in Household

• Kitchen Applications

• Bathroom Accessories

• White Goods

• Lifestyle Products

• Interior Decoration

28


AirportsWall Cladding, Roofing, Check in Area, Seating Spaces,

Immigration Area, Railings, Display Boards, Lounge, Booths, Duty Free Area, Signage, Decorative, Elevators , Escalators ,

Travelators, Food Courts….

Wall Cladding, Roofing, Check in Area, Seating Spaces, Immigration Area, Railings, Display Boards, Lounge, Booths, Duty

Free Area, Signage, Decorative, Elevators , Escalators , Travelators, Food Courts….


29

Industrial Applications

• Power

• Process Industry

Stainless Steel in Industrial Applications

30

Automotive and

White goods• India a leading automobile

hub in S.Asia, specially for two wheelers and small cars

• Increase usage of Stainless Steel in exhaust, wheel rims etc.

• Large middle class driving White Goods market

Stainless Steel in Auto and White Goods

31

Source : FICCI Nov 2009

• India destined as a major Automotive hub in South Asia.• A large manufacturing base for Two wheelers / Small cars / Steel and Stainless Steel

components for automobiles.

11.2 mill

32.3 mill

10.8 mill11.1 mill

9.7 mill8.5 mill

Indian Automotive : Growth Prospects

32

What Next???

33

Bus Body LPG Cylinder

Cycle Rim Plumbing

Hospital Furniture Water Tanks

Railway Passenger Coaches

34

Applications ‐ Arriving shortly… ( India )

Bicycle Rim & Gas Cylinder 35


Plumbing

36


Water Storage Tank

37


Hospital Accessories

38


Bus Body

3939


Bus Body

4040


Railway Passenger Coaches


41

But???

42

Inadequate Infrastructure – Energy, logistics, portsetc. not conducive to growth of manufacturing sector

Infrastructure projects subject to delays and financialconstraints

Budget constraints Vs. Life Cycle benefits ofStainless Steel

Dependence on imports for certain raw material –Nickel, SS Scrap , Moly.

Challenges Ahead

43

Watch For….

44

Railway

• Metro in major cities

• Railway Wagons

• Coach Up-gradation

• SS usage in

Platforms

Increasing ABC applications

• Selective Rebar's

• Door &Windows

• Cladding

• Signage's

• Street Furniture

• Fasteners

• Life Style products

India as export hub for

• Auto Components

• Appliances

• Mill Products

• High Quality Value

Added Engineering

Products

Changes in the Market Place…

45

Movements in environment………

RM Price Fluctuations ( Ni, Cr, Scrap )

Grade / Series Substitution in Industry

Standardization (IKEA/ Whirlpool / Electrolux moving

to 400 Series)

46

Raw Material : Price VolatilitySince 1990

Source : Metalytics

Nickel (key Raw Material for Stainless Steel) trades over a wider Price Range than other base Metals.

47

• High growth economy• Increasing SS consumptionProspects

• ABC (Architecture, Building & Construction)• Automobile • Railways

Growth Area

• Indian Infrastructure • China Capacities• RM Volatility

Challenges

Indian Stainless Steel Industry Outlook

48

Summing up ++

49

Summing Up++

SS Production will go up to 4 Million Tons by 2015

Overcapacity in the market .. export boost up

Scope for double digit growth in SS Consumption

(Growth in SS Consumption is about 1.2 Times GDP )

New applications will emerge very fast

Opportunities for business in downstream industries

SS will change the face of India

Indian Stainless Steel Market

50

Contact at : [email protected]

indian stainless steel market 30th september 2013 · • escalators, elevators • claddings •...

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