Polish Electrical Steel Sector [Silicon Steels]

Polish Electrical Steel Sector [Silicon Steels] October 2004

POLISH ELECTRICAL STEEL SECTOR AGENDA
Definitions
Trade classification
Consumption
Trade perspectives
Routes to market
Demand side information
Opportunities …

DEFINITIONS
Oriented (transformer) steels, produced from low carbon steel of approx. 3% silicon content. These steels are principally used for the production of high power transformer cores or for distribution transformers
Non-oriented (dynamo) steels:
Either high alloy steels containing up to 3% Si and 1% Al, characterised by low transmission loss
Low alloy, lower Si/Al regular core loss steels
Both are the basic building blocks for magnetic circuits in rotating machinery and for small transformers (low power transformer cores)
Electrical steels consist of two main product groups which differ according to their metallic structure, magnetic properties and thus applications:

TRADE CLASSIFICATION *: Classification is the Polish ‘Kod Materialowo Handlowy’ 722611100 722611900 722619100 722619300 722619900
Width <600mm
Transformer steels (grain-oriented)
Width >500mm
Width <=500mm
Dynamo steels (non grain-oriented)
- Hot rolled
Cold rolled, width >500mm
Cold rolled, width <=500mm
722511000 722519100 722519900 Width >= 600mm Transformer steels (grain-oriented) Dynamo steels (non grain-oriented) - Hot rolled - Cold rolled Classification* Description

000’s tonnes* 2001 2002 2003 2004e
Production Transformer 27.6 26.2 24.5 26.0
Dynamo 34.5 32.1 31.4 30.6
Total 62.1 58.3 55.9 56.6
Export Transformer 20.8 17.5 14.5 3.4
Dynamo 14.3 9.4 4.5 4.4
Total 35.2 26.9 19.0 7.8
Import Transformer 5.6 4.0 5.0 4.2
Dynamo 13.0 19.3 6.4 15.4
Total 18.7 23.3 11.4 19.6
Consumption Transformer 12.4 12.7 15.0 26.9
Dynamo 33.2 42.0 33.3 41.6 Total 45.6 54.7 48.3 68.5
: Data is from GUS, for trade to 2003 from discussions with the Centrum Informatyki Handlu
Zagranicznego and for 2004 from the Ministry of Finance. Latter assessments may be subject to
change.
** : Significant hot rolled dynamo steel supply ~2001 thought to have been from Sendzimira prior to CC
installation.
CONSUMPTION - Cold Roll Electrical Steel HRC from Sendzimira HRC from imports** Prodn is by Stalprodukt alone

CONSUMPTION – Some characteristics † Note that electrical steel consumption for the production of transformers, dynamos etc is of cold rolled steel only. Consumption of hot rolled electrical steels is for the production of cold rolled electrical steel alone
Cold rolled electrical steel market ~55 kt/yr
2/3rds of demand is for dynamo steel, 1/3rd for transformer steels
Exports showing a strong declining trend
Demand supply is monopolised by Stalprodukt
Hot rolled sourcing:
- For transformer steels is from Sendzimira
- For dynamo steels is from imports (Slovakia)
† : Demand appraisals courtesy of http://www.steelonthenet.com consulting team

TRADE PERSPECTIVES - Exports 000’s tonnes 2001 2002 2003 2004e Hot rolled Transformer 0.0 6.0 6.0 0.0 Dynamo 0.1 0.0 0.0 0.1 Total 0.1 6.0 6.0 0.1 Cold rolled Transformer 20.8 17.5 14.5 3.4 Dynamo 14.3 9.4 4.5 4.4 Total 35.1 26.9 19.0 7.8 Total Transformer 20.8 23.5 20.5 3.4 Dynamo 14.4 9.4 4.5 4.6 Total 35.2 33.0 25.0 7.9 Polish Electrical Steel Exports, 2001-2004
Cold rolled steel dominate export volumes
Relatively low hot rolled exports evident in recent years
Both transformer and dynamo export volumes in decline

000’s tonnes 2001 2002 2003 2004e
Hot rolled Transformer 0.0 0.0 0.0 0.0
Dynamo 21.1 30.8 37.0 29.0
Total 21.1 30.8 37.0 29.0
Cold rolled Transformer 5.6 4.0 5.0 4.2
Dynamo 13.0 19.3 6.4 15.4
Total 18.7 23.3 11.4 19.6
Total Transformer 5.6 4.0 5.0 4.2
Dynamo 34.1 50.1 43.5 44.4
Total 39.8 54.1 48.5 48.6
TRADE PERSPECTIVES – Imports The dominant trade item Polish Electrical Steel Imports, 2001-2004
Import volumes constant at ~50 kt/yr since 2001
Dynamo steels dominate imports: mostly hot, some cold
Transformer steel import volumes negligible

ROUTES TO MARKET Polish electrical steel market Stalprodukt Imports Exports 38% 62% 0% 99% 1% *: Indirect refer to independent traders. Figures are based on 2001-2004 ‘typical year’flow As with alloy steels in general, specificity of composition, of heat treatment, of metallurgical properties and of size means that the product does not lend itself to bulk sales through intermediaries 66% of supply 34% of supply Direct Indirect Direct Indirect

DEMAND SIDE INFORMATION - Buyers
Customer Name & Address Approx annual purchase (tonnes)
------------------------------------------------------------------------------------------------------------------------------------
Zaklady Spretu Oswietleniowego ‘Elgo’, 09-500 Gostynin, Kutnowska 98 1100-1700
Spoldzielnia Inwalidow ‘Elektra’, Ul Marynarska 14, 02-674 Warszawa 635
‘ Alstom Power Generators’ Spolka z.o.o., 53-609 Wroclaw, Ul. Fabryczna 10 2250-2500
Zaklady Remontowe Energetyki Warszawa, 00-346 Warszawa, Ul. Elektryczna 2a 35-65
Zaklady Maszyn Elektrycznych ‘Wamel’, 02-255 Warszawa, Ul. Krakowiakow 12 15-20
EDA S.A. Poniatowa, 24-320 Poniatowa, Ul. Fabryczna 16 200
EV Zychlinskie Transformatory Sp z.o.o., 99-320 Zychlin, Ul. Narutowicza 72 155
Philips Lighting-Farel Mazury Spolka z.o.o., 11-400 Ketrzyn, Ul. B Chrobrego 8 2000-4600
Etc …
Etc ...
MCI can identify the main buyers / locations
We can help you shape your market entry strategy for any finished steel product

OPPORTUNITIES …
Can MCI help you develop your presence in the Polish silicon steel sector, or in other East European special steel markets?
Can we help you with a European market entry study?
If so please call us for a no obligation discussion …
Please contact: Andrzej Kotas, Managing Director, MCI Website: http:// www.steelonthenet.com Email: [email_address] Mobile: +44 (0) 775 149 0885

OPPORTUNITIES … For more steel information visit us: http:// www.steelonthenet.com

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Polish Electrical Steel Sector [Silicon Steels]

by Andrzej Kotas on Jun 04, 2009

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Polish Electrical Steel Sector [Silicon Steels] — Presentation Transcript