Steel potential in MENA regionPresentation Transcript
EXPORT POTENTIAL OF STEELBILLETS AND REBARS IN MENA REGION PRESENTED BY- SOOBIAN AHMED 10-MIB-40
COMPANY PROFILEo Hindustan Steel Private Limited was set up on January 19, 1954. Steel Authority of India Limited - A Maharatna Ranked 21st largest Steel Producer with 13.8 MTPA 85.82% of Equity is owned by Government of India. NET SALES 2008-09 : Rs 43,204 2009-10 : Rs 40,551 2010-11 : Rs 42,719 EPS 2008-09 : Rs 14.94 2009-10 : Rs 16.35 2010-11 : Rs 11.87
MAIN ACTIVITIESItproduces both basic and special steels for domesticconstruction, engineering, power, railway, automotive and defenceindustry for sale in domestic and international markets. SAILproduces iron and steel at five integrated plants and three specialsteel plants.SAILs Consultancy Division (SAILCON) at New Delhi offersservices and consultancy to clients world-wide.SAIL has a well-equipped Research and Development Centrefor Iron and Steel (RDCIS) at Ranchi which helps to producequality steel and develop new technologies for the steel industry.SAIL-ITD is an ISO 9001:2000 accredited unit of SAIL engagedin export of Mild steel products and import of raw material.
TASK ASSINGNED To study Global Steel Scenario To study Steel Billet and Rebar Pricing pattern and Competitors. To study the major Exporters of Steel Billets and Rebar in MENA region. To study the MENA as a potential Market for Steel Billets and Rebars. METHODOLOGY Desk Research/Secondary Research
WORLD STEEL SCENARIOIN 2010 WORLD PRODUCED 1413.6 Million Tonne of steel out ofwhich 626.7 million Tonnes was produced by China followed byJapan ,US, Russia and India.
PRODUCT AND REGION
Steel Billet Production (‘000 MT)5000045000400003500030000 2006-0725000 2007-0820000 2008-0915000 2009-1010000 5000 0 EU C.I.S. North America South America Africa Asia Oceania STEEL BILLET PRODUCTION (‘000 MT) EXPORTS OF BILLETS AND SEMIS (000 MT)100000 70000 90000 60000 80000 50000 70000 40000 60000 30000 2006-07 C.I.S. 50000 2007-08 Asia 20000 40000 2008-09 World 10000 30000 2009-10 0 20000 10000 0 2006-07 2007-08 2008-09 2009-10
Major Billet Exporting Nations(000 MT)18000160001400012000 Turkey10000 Russia 8000 Ukraine 6000 India 4000 2000 0 2006-07 2007-08 2008-09 2009-10 Imports of Billets and Semis(000’ MT)300002500020000 2006-0715000 2007-08 2008-0910000 2009-10 5000 0 EU C.I.S. North America South America Africa Middle East Asia
ANALYSIS AND FINDINGS◦ Region wise Asia has overtaken CIS as the largest billet producer in 2010. But still CIS is the largest exporter of Billets.◦ Increase in the cost of manufacturing due to increased prices of coal and coking coke has resulted in fall in output of CIS Steel makers.◦ The demand has also fallen due to uprising in Middle East a major market for CIS producers.Low profit margin for manufacturers of CIS on Billets as compared to more profit margin on Flat steel product is also a reason for fall in billet production.◦ MENA region Uprising and Low construction has also affected the demand for billet.◦ Political unrest in Middle East and North Africa has compounded the problem as many of the captive export markets for Black Sea based and Turkish mills have suddenly vanished creating a vacuum, forcing them to find alternate destinations.
Production of Concrete Reinforcing Bars (000 MT)160000140000120000100000 2006-07 80000 2007-08 60000 2008-09 2009-10 40000 20000 0 EU North America South America Africa Middle East Asia World Average Rebar Price900800700600500400300200100 0
Production of Concrete Reinforcing Bars (000 MT) 2006-07 2007-08 2008-09 2009-10 Asia 108034 122490 115628 139038 World 147082 164884 158675 166761Asia share (in %) 73.45154 74.28859 72.87096 83.37561180000160000140000120000100000 Asia 80000 World 60000 40000 20000 0 2006-07 2007-08 2008-09 2009-10
ANALYSIS AND FINDINGS Asia is the Major producer of Rebar, producing 83 % of World production. China is producing more than 3/4th of Asia’s production. Rebar being a finished product, it’s demand depend on the rate of infrastructural development. Demand for rebar will be high in MENA region due to high construction rate.
MENA HAS HUGE POTENTIAL BCZ….. MENA region has the highest construction rate and the most promising region after BRIC. Low domestic production : HADID in Saudi Arabia, LISCO in Libya, QASCO in Qatar, EZZ Steel in Egypt, SONASID in Morocco, ESI in UAE , Arcelor Mittal in Algeria are Major steel producers. There is a Huge deficit in Domestic production and Domestic Demand.
MAJOR INFRASTRUCTURAL PROJECT IN MENA REGION FOOTBALL WORLDCUP 2022 :QATAR is looking to spend $70- billion on infrastructure to host the FIFA World Cup DUBAI IS BIDDING FOR 2024 OLYMPICS
$4.3trn to be spent on MENA construction sector to 2020 A report, sponsored by PricewaterhouseCoopers and carried out by Global Construction Perspectives and Oxford Economics, predicts a total of $4.3 trillion is forecast to be spent on construction in the Middle East and North Africa region over the next decade, representing growth of 80 percent.
Masdar City - Phase 1 – Abu Dhabi Budget: $1.6bn King Abdullah Economic City - Seaport Budget: $5bnKing Abdullah Financial Centre - 28 Buildings Princess Norah UniversityBudget: $2.91 billion Budget: $2.67 billion
Prince Talal Bin Waleed Of Saudi Arabia has recently announced construction of World Tallest Building in Jeddah Costing US $ 1.2 bn. Mena Holding Group, a Kuwait-based construction company, plans a $24.2 billion satellite city in Egypt.“The Ayaat City will be built on an area of 1.9 million sq m in 6 October City, about 38km southwest of Cairo, and will cost about 140 billion Egyptian pounds ($24.2 billion) over 20 years. In Qatar major infrastructure projects would include the $9 billion New Doha International Airport, the $7 billion New Doha Port project, the $13 billion Qatar-Bahrain Causeway, as well as a handful of power and water plants. The Government in Algeria recently approved a plan that will be implemented by 2014 for the construction of popular homes, schools, hospitals, roads and railways involving an investment of 286 US billion dollars.