outlook for nickelalloys - :: international nickel study ... · 1 962 1964 66 1968 1970 197 2 197 4...
TRANSCRIPT
presented byMarkus A. Moll
Senior Market AnalystSteel & Metals Market Research
International Nickel Study GroupLisbon 22nd April 2008
Lisbon, Portugal
Only the SkyOnly the Sky …… is the Limit`is the Limit`
Outlook for NickelalloysOutlook for Nickelalloys
- 2 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Enduse FocusedEnduse FocusedSingleSingle--Client ResearchClient Research
Executive SearchExecutive SearchKnow How Know How –– Know WhoKnow Who Shanghai Shanghai -- JuneJune ´́0808
Marbella Marbella -- Nov. Nov. ´́0808
MultiMulti--Client Projects & Client Projects & Stainless Steel SeminarsStainless Steel Seminars
Conferences in cooperation with
Type of ResearchType of Research ProductsProducts Steel GradesSteel Grades
Single Client90 %
MultiClient10 %
Long Products
50 %
FlatProducts
50 %
StainlessSteel70 %
Tool Steels,Eng. Steels,
Nickelalloys & Carbon Steels
30 %
MA
RK
ET R
ESEA
RC
HM
AR
KET
RES
EAR
CH
LOC
ATI
ON
LOC
ATI
ON
PRO
DU
CTS
PRO
DU
CTS
TEA
MTE
AM
Market Intelligence Market Intelligence for the for the
Specialty Steel IndustrySpecialty Steel Industrysince 1994since 1994
www.smr.atwww.smr.at
www.steelwww.steel--intelligence.comintelligence.com
www.steelwww.steel--executive.comexecutive.com1950
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e
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5.000
10.000
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25.000
30.000
'000
met
ric to
nnes
M.A. Moll P.A. Moll W.D. Bentley W. Lipp O. Spaltmann E. PfeiferR-P. HammerleT. Feichtner J. NormandeauB. BlitzBarry HunterAssoc. Scrap Cons.
- 3 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
AGENDA
1. Definitions, Basics & Market Structures
2. Producers
3. Focus on Aerospace
4. Future Trends
- 4 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
ALLOY TYPE MAIN ALLOYS MAIN APPLICATIONS
Electronic Alloys: Ni 205 NiFe 36NiFe 42NiCr 80-20
spark plugs, welding wireshadow masks, glass sealslead framesheating elements
Heat Resistant:330*600, 601800, 800H, 800HT, 825Calrod*
various furnace componentswelding wire, heat shieldsoil & gas industrytubular heating elements
HPA: A286*Inconel 718Nimonic 80AInconel 725Hastelloy X
manifold studsjet engines, gas turbines, oil & gasdiesel engine valvesoil & gasjet engines, structural components
Corrosion Res.: Alloy 200Monel 400: K500Incoloy 925Alloy 28*L 605*
battery casingsshafts pins, structural partsoil & gas industryOCTGSurgical Implants
Definition: > 30 % Nickel with some exceptions*
* < 30% Ni or Co-based
- 5 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Global Production Volume 1989 – 2007e
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25
50
75
100
125
150
175
200
225
250
275
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
e
in ´0
00 to
nnes
Global Production Volume 1989 – 2007e (finished products)Long Term Growth is Limited
G.R.: 2,8 % p.a.
- 6 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Production by Product Form 2006 & split into 4 Alloy Groupsall in ‘000 tonnes (metric)
Total World: 272,9Europe: 84,4America: 90,9Asia: 67,5Others: 30,0
World 164,7 World 108,2
Total 52,6 Total 43,3 Total 36,7 Total 32,0 Total 60,4 Total 47,7Seamless Tube
All Products
Flat Products
Sheet / Plate Strip
Long Products
Semis WireBars
Corrosion Resistant Alloys
35%
High Performance Alloys33%
Heat Resistant Alloys10%
Electronic Alloy26%
- 7 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Market Volumes 2006 Net Importers & Net Exporters of Nickel Alloy Products
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20.000
40.000
60.000
80.000
100.000
120.000
met
ric to
nnes
Net ExportsDemandNet ImportsProduction
America
Europe
China
Other Asia
Other World
- 8 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
AGENDA
1. Definitions, Basics & Market Structures
2. Producers
3. Focus on Aerospace
4. Future Trends
- 9 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
SMC is again the No.1 Producer Worldwide Top-10 Producers control 75% of the Market
Top Producers of Nickel Alloy Flat & Long Products** (2007 estimated)
* incl. Industeel ** Final shipments (plate, sheet, strip, bar, wire, seamless tube), excluding castings
-
5
10
15
20
25
30
35
40
45
SMCVDM
Imphy
Allo
ys * ATI
Carpen
terSumito
mo
Nippon Y
akin
Hitach
iHay
nes
Daido
Sandv
ikFor
oni DN
Valbru
naElec
trosta
lMits
ubishi
Aubert
& Duva
lBUAG
Firth R
ixon
Electra
lloy
Flat Long
- 10 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
1. Definitions, Basics & Market Structures
2. Producers
3. Focus on Aerospace
4. Future Trends
Aerospace
Focus on …
- 12 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Rotating Parts ‘Premium Segment‘ Alloys are double Vacuum (VIM / VAR) melted or even Triplex (VIM / VAR / ESR) melted
Discs ‘Christmas Trees’ Blades
- 13 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Non Rotating Parts Duplex Melting and sometimes even Air Melting is sufficient
Engine Mount
Rings Bolts &
Fasteners
- 14 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Inconel 71878%
Others*7%
Waspaloy15%
*incl. CO based, Fe based & PM
Pratt & Whitney
Grades used by main Engine Producers
Waspaloy15%Others*
20%
Inconel 71865%
*incl. CO based, Fe based & PM
General Electrics Rolls Royce
Waspaloy11%
Inconel 72011%Others*
28%
Inconel 71850%
*incl. IN 901, RR 1000, C263, Others
- 15 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Buy to Fly The alloy producer has to melt up to 10 times the component weight
Source: Rolls-Royce
- 16 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Accident Rates: Only 2 % of all fatal accidents are due to Engine failures
- 17 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Boeing* & Airbus Deliveries
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100
200
300
400
500
600
700
800
900
1.000
1970
1971
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2008
e
Num
ber o
f Airc
raft
Del
iver
ies
Boeing Airbus
* & other U.S. producers
The Aerospace ‘Roller Coaster‘ Airbus beat Boeing 453 to 441. Total in 2007 => +7% vs. 2006
Order Backlog: 7.000 planesAnnual Roll-Out: max. 1.200 units
=> Industry is busy for 6 Years but ….… Problem: There is no Cancellation Fee!
- 18 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
AGENDA
1. Definitions, Basics & Market Structures
2. Producers
3. Focus on Aerospace
4. Future Trends
- 19 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Trends
Few New Grades: Alloy 718+ (Teledyne Allvac)
Is Nickel Substitution an Issue?
o Carpenter 30% Ni grade vs Nimonic 80A for Valves
o Clad Plate (var. Producers) & ‘Bubi Pipe’ (Butting) are booming
o Ti has re-gained applications (heat exchangers, sea-water
desalination)
Market transfer to China: Supply follows Demand
Industry Consolidation is Overdue
- 20 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Electronics / Electric Appliances
20%
Oil & Gas15%
Chemical / Process Industry
15%
Aerospace21%Others**
7%Industrial Machinery
7%
Other Energy*7%
Nuclear1%
Automotive7%
Market Structure 2007 and Outlook Growth Trends to 2012 for Ni used in Nickelalloys
* LGBGT, FGB
** Marine, Thermal Process, etc.
12% of Prime Ni 3%
2%
2%
1%
1%
1%
1%
> 6%
> 3%
< 3%
CAGR
- 21 -INSG – Nickelalloys ‘08© Copyright SMI GmbH 2008
Nickel Demand in Nickelalloys … … will continue to grow substantially until 2010 – thereafter a phase of stagnation can be expected
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30
60
90
120
150
180
210
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
in `0
00 to
nnes
Ni Use In Nickelalloys
CAGR + 5% + 40,000 t or
+ 25% by 2012