Outlook S ince the dawn of civilization, man has been makingIndian Steel continuous innovation in various spheres of science &Casting Industry technology. The foundry industry, by itself, is no exception to this. Metal casting products include- Arindam Kumar (DE), ferrous casting like grey iron. ductile Iron, malleable iron, steelV. K. Singh (DGM), casting and various non-ferrousDr. H. Singh (DGM) castings. Historically, Iron castingand A. P. Singh (Jt. GM), products enjoy a dominant statusMECON LTD in manufacturing sector over steel casting products. But in the recent past, the requirements of industry have changed with the development & advancement of new technology. Therefore, the industry needs products having improved metallurgical properties, uniform micro structure, higher hardness, lighter weight, dimensional consistency & closer tolerance. In this respect, steel casting products have an edge over iron casting products which provide greater freedom of design choices especially the complex shape and hollow section parts. The weight range of steel casting product is larger compared to Iron casting product. Casting weight ranges from only a few grams in case of molten mold precision castings to the weight of large steel castings of hundreds of tons. Steel casting also has greater strength to weight ratio compared to iron casting. Thus, steel casting plays a very important & specified role in machine manufacturing sector. Its use is increasing day by day with the growth of industries. Keeping in mind this backdrop, the present article deals with the analysis of market scenario of steel castings and its future prospects in view of widening industrial spectrum with particular reference to the × 20 Ø 2011 October machinery sector.
Outlook Steel casting can be broadly production was 5.22 million tons inclassified into following three major 2003 which grew to 10.54 Million tonscategories in 2008 . During 2008-09 , Economies l Steel Casting Carbon worldwide were struggling with lSteel Casting Alloy recession, and the global steel casting industry also felt the ripple l Stainless Steel Casting effects. The latest World Census of The end uses of those steel castings Casting Production conducted byare furnished in Table-1 MODERN CAST ING ,USA revealed Categories Uses CARBON STEEL CASTING Cold chisels, Pneumatic drill bits, Wrencher, Rock drill, Share High Carbon blades, Hack saws ,mandrel ,leaf spring Connecting rods, Gear shaft, Axels , Gear shaft, crank shaft, Axels, Medium Carbon Crank pins, Set screw Steel wire, sheets, rivets, screw, pipe, nail, chains, camshafts, Low Carbon sheets , welded tubing ALLOY STEEL CASTING Silicon-Manganese Steel Punches and chisels. Storage cylinders for liquefied gases, turbine blades, highly stress Nickel steel screw, bolts and nut. Axles, Crankshafts, connecting rod, Aircraft and heavy vehicle for 2009.This decline may be attributed Chrome Nickel components. to the global industrial recession. Aircraft landing gear, Coil and leaf springs, Fuselage, Pressure Fig-1 indicates that, China & India Molybdenum Steel vessels, Transmission gear witnessed substantial growth in Steel Manganese Steel Power shovel buckets , Grinding and crushing machinery, Railway casting production from 2003 onwards, tracks etc. due to their high rate growth in STAINLESS STEEL CASTING manufacturing sector. The situation is Aircraft industry (engine parts),Chemical processing (heat likely to improve in future years as Austenitic exchanger) Lining for petroleum industry (engine parts) demand from the Automotive & Auto Component sectors which are the Heating elements for furnace, Interior decorative work, Screws & Ferritic fittings, Oil burner parts etc. major consumer of casting product, is expected to increase significantly. Pumps & valve parts, Rules and tapes, Turbine buckets, Surgical Martensitic The changing pattern of various Instruments etc. metal castings in the world has beenMarket Analysis that global steel casting production indicated through Fig-2 and Fig-3 recorded decline from 10.55 million during the year 2003 and 2009 Steel castings Industry is tons during 2008 to 9.03 million tons respectively.considered to be the backbone ofengineering industry serving Fig. 1 : Countrywise Cast Steel ProductionAutomotive, Agricultural machinery,Mining & construction equipmentsindustry and almost all downstreamengineering industry. The demandscenario of steel castings is depictedinto the following paragraphs.Global Scenario A brief account of the global steelcastings production during 2000 to2009 production is furnished in Fig-1.Global steel castings productionwitnessed a significant growth duringthe period of 2003 to 2008. As per theWorld Census of Casting Productionconducted by MODERN CAST ING,USA revealed that global steel casting × 22 Ø 2011 October
Outlook Fig. 2 : Proportion of Various Metal Casting in 2003 Export The countries where India is exporting a substantial quantity of steel castings are Germany, Czech Republic, Finland, USA, UK,UAE ,Australia, Singapore etc. Exports of steel casting during the period 2003 to 2009 are furnished in Fig-6. Steel casting export grew steadily during the period of 2003 to 2007 .There has been a marginal drop during the year 2008 and 2009 due to worldwide economic and industrial recession. Foundry products have a vast Fig. 3 : Proportion of Various Metal Casting in 2009 potential for exports to developed countries especially to the USA, EU countries, Japan etc..In all those countries foundries are being progressively closed down due to their stringent environmental pollution norms .Now they are on look out to shift their manufacturing facilities else where in countries like India, or china. Under the circumstance, there is immense scope for these products to be exported from India. Indian foundry industries need to update their technologies in different From the above figures, it is phases of casting production to meetrevealed that the share of steel castingamong the total metal casting has Fig. 5 : Imports of Steel Castings in Indiaincreased substantially from 7% to 11%during 2003 to 2009 and whereas share 88 83 83 83of grey iron casting witnessed a drop to47 % in 2009 from 54% in 2003. Other 69castings saw a marginal increment.This is because of the specified &strategic application of steel castings 34 38which replaced the application of greyiron castings in various areas.Foreign Trade Foreign trade is an integral part ofan economy. The imports and exportsof a product depend upon many factorsincluding its indigenous availability andquality of the products. The steel Fig. 6 : Exports of Steel Castings from Indiacasting is no exception of these facts.Imports The imports of Steel casting duringthe period 2003 to 2009 are furnishedin Fig-5 . The lion share of import ofSteel castings belongs to Automobileand Mining & construction equipmentmanufacturing sectors. Countries fromwhere India is importing Steel castingare China, Korea, Japan, Germany,Italy, UK , Switzerland, etc. × 24 Ø 2011 October
Outlookthe requirement of quality machined Rail Road l (CAGR) of about 13%. Auto componentindustrial casting with dimensional l & compressor pumps manufacturers association of Indiaaccuracy and surface finish and also to l Market other (ACMA) in their EY Vision 2020 hasadd up capacities to cope up with projected the production of Literature surveys reveal that aboutincreased demand automobiles for the milestone years 33 % of total steel castings areDomestic Demand 2010,2015 and 2020 as furnished in consumed by automobile sector. The India is one among the fast growing Fig-7. second largest consumer is pipe fittingsdeveloping nations, the gross domestic & valves consuming around 20% ofproduct (GDP) has been rising at the total steel castings followed byrate of about 8% to 9% every year since agricultural machinery and2002. Manufacturing sector which is construction & mining sectoralso growing at the rate of about 8% to consuming about 9 % & 6 %10% from 2003 onwards plays a very respectively. The share of majorcrucial role to the growth of Indian consuming industry of steel casting iseconomy. With high and steady growth, furnished below through pie chart inIndia is becoming the dream destination Fig-4for investment to the various foreign Fig. 4 : Industry-wise Consumption ofcompanies. The Casting industry has Steel Castingemerged as one of the majorcontributor to the growth ofmanufacturing industry in India. Thesteel casting Industry of India which Pipe Fittings & Valvewas ranked 5 just a decade ago , has Pipe fittings include elbow, socket,now moved to Nos 2 in world ranking union; bend and various types ofjust behind the china. valves like ball valve, gate valve, The apparent consumption of steel butterfly valve, check valve, aircasting for the period of 2003 to 2009 is release valve, Sluice valve etc.furnished in Table-2. Industrial Pipe fittings & valves are Table-2 : Estimated Apparent Consumption of Steel Casting (In 000 tons) mostly made of iron casting but now a days application of steel casting in Year Production Import Export Apparent Consumption pipe fittings & valves are increasing. 2003 465 34 140 359 The end-using industries of pipe 2004 581 38 129 490 fittings and valves viz process 2005 805 69 186 industries is expected to grow with 688 substantially higher growth rate. This 2006 914 83 192 805 may result into higher growth of pipe 2007 1000 88 205 883 fittings & valve in the future years 2008 910 83 137 856 than observed in the past. 2009 900 83 123 860 Agricultural Machinery Traditionally ploughs were only Table-2 reveals that consumption Looking into the share in demand known agricultural machinery in India.of steel casting has grown by about for steel casting by the various major Then after “Green Revolution”16% during 2003 to 2009. However, contributors like automobiles, pipe combined with industrial growth put aduring the short term (2005 to 2009) fittings & valves, agricultural thrust towards the development ofsteel castings consumption could not machinery and construction and mining Agricultural machinery sector in India.retain its past growth performance equipment sectors, it is thought prudent Indian agricultural machinery marketbecause of the wider base in to have an overview of these sectors as had a total revenue of $ 2.8 Billion inconsumption during 2005. deliberated below Automobile Sector. 2010, reporting a compound annual The domestic demand of steel Auto Industry in India consisting of growth rate (CAGR) of about 8.6% forcasting industry is driven by following commercial vehicles, passenger cars the period spanning 2006-2010.Theend-using sectors. and two / three wheelers plays a pivotal market forecast for the period of l Automobile role in harnessing countrys economy 2010-2015 is also predicted for very l Pipe Fittings & Valve etc. and providing means of transport to high growth rate of about 7%. With this million of people. This industry has high growth rate, market size for l Agricultural Machinery witnessed a steady growth for the agricultural machinery is expected to l Construction & Mining equipments period spanning 2004-2010, reporting reach to $ 4 Billions by the end of l I/c Engines a compounded annual growth rate 2015. × 26 Ø 2011 October
Outlook a p p a r e n t consumption of steel casting ranged between 14.4% to 38.8% during the period of 2003 to 2 0 0 9 . T h e Government of India is making possible efforts to boost the export. In view of this, a margin of exportConstruction & Mining provision is required to be added toEquipment arrive at aggregated demand. A share Construction & Mining equipment of about 15% of the domestic demand(MCE) cover a variety of machinery has been considered as exportsuch as hydraulic excavators ,wheel provision in demand and the resultantloaders, backhoe loaders, bull dozers, demand for the terminal year has beendumper, tippers, graders, breakers, worked out. The total demand (withvibratory compactors, rope shovel etc, exports) for steel casting works out towhere steel casting found its extensive be around 1.8 Million tons and 2.2application. This industry witnessed a Million tons for the milestone yearshigh growth (19%) in revenue during 2016-17 and 2019-20 respectively.the period 2005 to 2008 (Refer Fig-9). The projected Fig. 9 : Revenue Growth of MCE Companies demand is furnished graphically in Fig- 10 Fig. 10 : Projected Domestic Demand & Demand with Exports of Steel CastingDemand Estimation In view of the past growth inconsumption of steel castings (around Supply Scenario level of mechanization & very limited16% during 2003 to 2009) and future In order to analyze supply scenario in access to world class manufacturing /prospects of major consuming India, the steel casting producers design tools & technology. This resultindustries, the annual growth rate will were identified and their existing in average productivity in foundrybe about 10% up to the year 2012-13, capacity and past production were industry varies around 15-20 MT /8% up to the year of 2016-17 and 7% up also analyzed based on available man / year where as the worldto 2019-20 and which has been information. Presently in India, total benchmark productivity isconsidered to project a demand for 4600 nos. of foundries are operational. 100MT/man/year(in Germany). Thesteel casting in India. The projected Most them fall under small & medium new upcoming units have potential tosteel castings demand arrived at is sector with few thousand tons of match worlds best productivity. Manyfurnished in Fig-10. annual production capacity operating foreign investments are also coming to The exports as a percentage of with obsolete equipments, very low catch the lucrative Indian market .With × 28 Ø 2011 October
Outlookall these investments it is expected available at reasonable prices tothat domestic production will be able domestic industry. Statutoryto match future domestic demand of clearance procedures need to be makesteel castings in India and increase its more streamlined which will boostshare in the overseas market. fresh domestic investment as well asConclusion foreign investment and also bring new In view of rapid industrialization & technology with the investment. Thus,development of advance technology with the joint efforts from Govt as wellbased industry, the demand for steel as foundry -owner can push the Indiancasting is increasing day by day. With steel casting Industry to the newglobalization of economy, the Indian height from where it will contributefoundry industry is facing stiff significantly to GDP as well as createcompetition from their global counter enormous employment opportunities.parts. Under this circumstance, the References :indigenous manufacturer should make l Directorate General of Commercialconcerted effort on production of Intelligence and Statistics(DGCI&S),Govt ofvalue added components meeting the on new technology which will help not Indiaquality requirements of international only to improve productivity but also l Book of Material Science and A Textstandard at cheaper prices. This will achieve world class quality Metallurgy-O P Khanna.not only increase their share in the requirements. Role of the government l MODERN CAST ING Staff Report, USAinternational market, but also is also pivotal towards the growth of l component manufacturers Autominimize imports in the domestic steel casting industry .Government association of India EY Vision 2020 5. ICRAmarket. To meet the above objectives may streamline import duty Rating Servicesmanufacturer may restructure & structure& lower the import duties onrenovate their present production line raw materials such as pig iron & metal l The Institute of Indian Foundrymenand also fresh investment can be made scrap so that those key inputs will be SPECIAL OFFER Trendy Watch with each Subscription (Offer valid till 31st March 2012) × 30 Ø 2011 October