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Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
Challenges & future scenario of steel industry  1
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Challenges & future scenario of steel industry 1

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Power point copy of Presentation made by me on "Challenges & Future Scenario of Steel "Industry in Reliance General Insurance (RGICL's) National Conference on "Latest Trends & Practices in Steel …

Power point copy of Presentation made by me on "Challenges & Future Scenario of Steel "Industry in Reliance General Insurance (RGICL's) National Conference on "Latest Trends & Practices in Steel Sector" held at Mumbai on 17-18 Jan 2014

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  • 1. Challenges & Future Scenario of Steel Industry PRESENTED BY : GS DHIR
  • 2. Executive Summary  Globally, steel players have been operating in a challenging environment with rising input costs and persistent lower capacity utilization. This is driven by Low demand growth in developed markets, accompanied by a structural shift in the global steel industry to developing countries like China and India.  Over the last decade, Indian steel companies have consistently achieved higher earnings before interest depreciation taxes and amortization (EBIDTA) margins as compared to their global peers and have delivered steady growth despite external challenges.  Having established quality assets, Indian steel companies are now well poised to take advantage of expansion and growth opportunities in India. However, six long-term challenges are confronting the Indian steel industry’s growth aspirations 1/17/2014 11:29:07 AM Prepared by Gsdhir 2
  • 3. •Volatile domestic iron ore supply is forcing Indian steel companies to pay higher prices or import this key raw material thereby exposing them to global iron ore price volatility. •Flat products supply will exceed demand, leading to an overcapacity situation. This coupled with the muted demand growth will put significant pressure on margins. • Customers are maturing and increasingly demanding value-added products and services. •Existing supply chains are stretched in order to cope with the wide range of customers and product specifications— original equipment manufacturers (OEM) at one end, to the rural retail markets at the other—which impact service levels. •In the race to maintain market share, incumbents have taken on Greenfield and brownfield expansion plans at a pace and scale unprecedented in the Past. Skill gaps and other challenges have led to cost and time over-runs on these projects, putting further stress on the already stretched balance sheets. •Investments in management processes, systems and people capabilities have not kept pace with the investments in assets and the changing market place. This is increasingly becoming a bottleneck for growth.
  • 4. Key Capabilities to become game changers  Resource acquisition, development and operations The pursuit of raw material security has led Indian steel companies to seek mining leases and assets globally. The capability to acquire, develop and operate these assets has become a key strategic imperative. These assets provide a natural hedge at the raw material portfolio level, and are also important for overcoming the short-term domestic challenges.  Efficient capital project management TheIndian steel companies are increasingly undertaking larger, more complex and riskier projects to meet their capacity goals. Their ability to successfully execute these projects is hindered by regulatory challenges, limited talent pools, contractors and construction labour constraints, increasing infrastructure requirements, and expectations of compliance with superior safety and environmental norms. Capital investments have not been accompanied by a commensurate investment in enhancing capability to plan and execute these projects. 1/17/2014 11:29:08 AM Prepared by Gsdhir 4
  • 5.  Customer-Centric Sales and Marketing As Indian steel companies expand, they are increasingly facing an overlap in their market and product footprint. This coupled with a lower demand growth has led to increased price competition and pressure on margins. In this scenario, increased customer centricity will differentiate the high performers.  Differentiated Supply Chains Global trends are driving increased product and distribution complexity, as diverse and digitally-empowered customers demand ever-more tailored products and services. To remain competitive, companies across industries must embrace this growing complexity while maintaining the benefits of simple, streamlined supply chains to deliver their aspirations of growth, cost, working capital and sustainability.  Human capital management India steel companies’ ability to manage and leverage its human capital will become a key differentiator and will play a key role in enabling their growth aspirations. We believe Indian steel companies will need to address the 4 D’s of managing talent. Define Discover Develop Deploy 1/17/2014 11:29:08 AM Prepared by Gsdhir 5
  • 6. Current state of Indian Steel Industry  The Indian steel industry has entered into a new era of development since 2007-08, riding high on the resurgent economy and robust demand for steel. Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron in the world.  Domestic steel demand to remain muted during FY2012–17 on account of a weak macro economic environment The demand for longs is expected to increase by 19 million ton (MT) at a CAGR of 9 percent and for flats by 16 MT at a CAGR of 8 percent between FY2012 and FY2017 . This is due to relatively weaker growth prospects of flats end-user industries (such as automotive and consumer durables) than those for longs.  Increased domestic competition Incumbents and challengers have announced 71 million ton per annum (MTPA) of steel capacity addition between FY2012 and FY2017 through both brownfield and greenfield routes. However, there is considerable uncertainty on the actual capacity addition as many projects are yet to achieve financial closure due to delays or lack of regulatory clearances. 1/17/2014 11:29:08 AM Prepared by Gsdhir 6
  • 7. Based on our bottom-up assessment of the announced capacity additions, projects aggregating to 35 MTPA of crude steel capacity have already achieved financial closure. Hence, we expect a minimum aggregate capacity of 122 MTPA to be commissioned by FY2017. This capacity addition will lead to two structural changes. First, the concentration in the longs segment will increase by 5–7 percent in the medium term, deepening the sustainability challenge for secondary producers. Second, it will shift the current flatslongs capacity split of 50:50 to 60:40 by FY2017, if all the announced projects are commissioned. As a result, one can expect oversupply in flats and a capacity shortfall in longs.
  • 8. Major steel producing countries 2012: China (716.5mt) Japan (107.2mt) United States (88.7mt) India (77.6mt) Russia (70.4mt) Major Exporter of steel according to 2012: China (54.8mt) European Union (47.1mt) Japan (41.5mt) Russia (26.7mt) India 17th place (8.2mt)
  • 9. Major Importer of steel according to 2012: United States (31.5mt) European Union (29.5mt) Germany (22.9mt) South Korea (20.4mt) India 13th place (9.3mt) List of Top Steel Companies in India: TATA steel (20%) - Mumbai SAIL (10%)- New Delhi JSW steel (8%)- Mumbai Visa steel (5%)- Jaipur Bhushan steel (3%)- New Delhi
  • 10. Market share of steel by countries in 2012 50 45.5 45 40 35 30 23.6 25 20 15 10 7 5.6 5 4.7 4.5 4.5 2.3 2.3 Ukraine Brazil 0 China 1/17/2014 11:29:08 AM Japan US India Russia Prepared by Gsdhir South Korea ROW 10
  • 11. • Steel production in India has increased at a CAGR of 7.7 per cent over 2005–12. The country is slated to become the second-largest steel producer by 2015 as large public and private sector players strengthen steel production capacity in view of rising demand • Huge scope for growth is offered by India‟s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors Technological advancements • Increased government and corporate sector focus on using innovative production techniques for enhancing operational as well as financial performance is a positive Rising domestic and international investments • Domestic players‟ investments in expanding and upgrading manufacturing facilities are expected to reduce reliance on imports. In addition, the entry of international players* would provide benefits in terms of capital resources, technical know-how and more competitive industry dynamics Fourth-largest producer of crude steel Strong growth opportunities Notes: * - Arcelor Mittal and POSCO
  • 12. 1993–2012 1973–1992 1954–1964 • 1923–1948 • • 1907–1918 • • • • Production of steel started in India (TISCO was setup in 1907) IISC was set up in 1918 to compete with TISCO Mysore Iron and Steel Company was set up in 1923 According to the new Industrial Policy Statement (1948), new ventures were only undertaken by the central government • • Hindustan Steel Ltd and Bokaro Steel Ltd were setup in 1954 and 1964, respectively In the early 1990s, the public sector dominated steel production Private players were in downstream production mainly producing finished steel using crude steel products • • SAIL was created in 1973 as a holding company to oversee most of India's iron and steel production In 1989, SAIL acquired Vivesvata Iron and Steel Ltd In 1993, the government set plans in motion to partially privatise SAIL • • • • Foreign players began entering the Indian steel market No license requirement for capacity creation Imposition of export duty on iron ore, to focus more on catering growing domestic demand Decontrol of domestic steel prices Launch of Scheme for promotion of Research and Development in Iron & Steel sector Notes: TISCO - Tata Iron and Steel Company; IISC - Indian Iron & Steel Company; SAIL - Steel Authority of India Ltd
  • 13. Steel Form Liquid steel Composition Crude steel Finished steel End use Non-alloy steel Alloy Structural steel Stainless Ingots Semis Low carbon steel Construction steel Silicon electrical Medium carbon steel Rail steel Flat Non-flat High speed High carbon steel Source: Report on Indian steel industry by Competition Commission of India, Aranca Research
  • 14. Total crude steel production rose at a CAGR of 6.6 per cent over FY08–11 to 69.6 MT; production in the first nine months of FY12 was a little more than three-fourth of FY11 levels Finished steel production stood at 66.0 MT in FY11, recording a CAGR of 4.2 per cent during FY08–11; analysts expect production figures to improve rapidly over the next five years with the Ministry of Steel forecasting production levels at 115.3 MT by FY17 T otal crude steel production (million tonnes) T otal finished steel production (million tonnes) 52.9 52.6 47.6 42.6 49.1 44.5 43.4 42.1 36.8 17.1 FY08 41.1 16.4 FY09 16.7 FY10 Public sector 17.0 FY11* Private sector 12.3 FY12* (April Dec) 13.5 12.7 13.0 13.1 8.6 FY08 FY09 FY10 Public sector FY11* Private sector FY12* (April Dec) Source: Ministry of Steel, Aranca Research; Notes: FY - Indian Financial Year (April – March); MT - Million Tonnes, * - Provisional; CAGR - Compound Annual Growth Rate
  • 15. SAIL is the leading player in India‟s steel sector; in the first nine months of FY12, the company accounted for 18.7 per cent of the country‟s crude steel production and had a 13.5 per cent share in finished steel production Tata Steel, another household name in the country, leads private sector activity in the steel sector; during April– December 2011, the firm accounted for 9.9 per cent of crude steel production and 7.8 per cent of finished steel production India crude steel market share by production - FY12* (Apr-Dec) 9.9% India finished steel market share by production - FY12* (Apr-Dec) 7.8% Tata Steel Tata Steel 13.5% 18.7% SAIL SAIL 4.0% 4.3% RINL RINL 67.1% Other 74.7% Other Source: Ministry of Steel, Aranca Research; Notes: RINL - Rashtriya Ispat Nigam Limited, * - Provisional
  • 16. Market value of the Indian steel sector (USD billion) In 2011, the Indian steel sector‟s total market value was USD57.8 billion The sector has benefitted from rises in price and CAGR: 17.7% millennium 46.8 43.0 Over 2007–11, the sector‟s market value is estimated to have posted a strong CAGR of 17.7 per cent 36.5 30.1 2007 2008 2009 2010 2011 Source: Datamonitor, Aranca Research Note: E - Estimates
  • 17. Consumption of steel (in million tonnes) Total consumption of steel exceeded production and grew to 70.9 MT in FY12 as against 66.4 MT in FY11; over cent CAGR: 8.7% 66.4 70.9 59.3 Driven by rising infrastructure development and growing demand for automotives, steel consumption is expected to grow at an average rate of 6.8 per cent, reaching 104 MT by 2017 52.1 51.9 FY08 FY09 46.8 FY07 FY10 FY11 FY12* Source: Ministry of Steel, Indian Steel Markets Conference, Datamonitor, BMI, Aranca Research Notes: FY12* - Data for FY12 is provisional, MT - Million Tonnes
  • 18. With steel‟s demand growth outpacing growth in domestic production over the last few years, import dependency has increased Imports have increased at a CAGR of 6.8 per cent over FY07–12 In FY12, total imports stood at about 6.8 MT Steel demand and production (in million tonnes) 67 55 53 55 55 64 Steel exports and imports (in million tonnes) 7.4 7.0 71 69 6.8 6.8 60 57 5.8 50 50 4.9 5.2 5.1 4.4 3.5 4.0 3.3 2007 2008 2009 Demand 2010 Production 2011 2012 FY07 FY08 FY09 FY10 Imports FY11 FY12* Exports Source: Ministry of Steel, JSPL presentation, Aranca Research Notes: FY - Indian Financial Year (April - March), * - Data for FY12 is provisional
  • 19. Infrastructure is India‟s largest steel consumer, accounting for 63 per cent of total consumption in FY11 Sector-wise steel consumption FY12 2% 3% 0 This is not surprising given the heavy use of steel in this sector and soaring construction and infrastructure activity in the country over the past decade Engineering and fabrication is the next largest consumer, with 22 per cent of total consumption Infrastructure 10% Engineering and fabrication Autos 22% 63% Packaging Transportation Source: JSPL May 2013 presentation, Aranca Research
  • 20. Company Products Tata Steel Ltd Finished steel (non-alloy steel) SAIL Finished steel (non-alloy steel) JSW Steel Ltd Hot-rolled coils, strips and sheets Jindal Steel & Power Ltd Iron and steel Ispat Industries Ltd Hot-rolled coils, strips and sheets Welspun-Gujarat Stahl Rohren Ltd Tubes and pipes Bhushan Steel Ltd Cold-rolled coils, strips and sheets Source: Aranca Research
  • 21. • Growing investments SAIL has modernised and expanded its integrated steel plants in Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and Salem • The company is in the process of expanding its crude steel production capacity to 21.4 MTPA by 2013 • Completed mega expansion of Rashtriya Ispat Nigam Limited (RINL) to more than double capacity of plant (from 2.9 MT to 6.3 MT) from 2013-14 • Strategic alliances International Coal Ventures Pvt Ltd, comprising SAIL, RINL, CIL, NTPC and NMDC, has been set up for acquisition of coal mines overseas • The consortium of SAIL and National Fertiliser Limited (NFL) has been nominated for revival of Sindri Unit of the Fertiliser Corporation of India Limited • RINL, Vishakhapatnam Steel Plant and the Power Grid Corporation of India Ltd (POWERGRID) signed an MoU to set up a joint venture company to manufacture transmission line towers and tower parts including R&D of new high-end products • Entry of international companies Attracted by the growth potential of the Indian steel industry, several global steel players have been planning to enter the market • National Mineral Development Corporation (NMDC) has signed an MoU with Russia‟s third-largest steelmaker, Severstal, for a greenfield steel plant in Karnataka • Posco Steel to invest USD12 billion in setting up a 12 MT project in India Source: Ministry of Railways, Aranca Research Notes: MOUs - Memorandum of Understanding, MT - Million Tonnes
  • 22. • Increased emphasis on technological innovations Indian steel companies have now started benchmarking their facilities and processes against global standards, to enhance productivity • These steps are expected to help Indian companies improve raw material and energy consumption as well as improve compliance with environmental and pollution yardsticks • Companies are attempting coal gasification and gas-based direct-reduced iron (DRI) production. Other alternative technologies such as Hlsmelt, Finex and ITmk3 being adopted to produce hot metal Source: Aranca Research
  • 23. Steel integrated plants under SAIL (Bhilai, Rourkela, Bokaro, Durgapur and Burnpur) Tata Steel‟s largest steel plant, based in Jamshedpur Alloy and special steel plants under SAIL (Bhadrawati and Salem) RINL steel plant in Vishakhapatnam Source: Company websites, Aranca Research
  • 24. Growing demand Policy support Growing demand in the construction industry Increasing investments Rising investments from domestic and foreign players 100 per cent FDI in the steel sector Inviting Resulting in Growing demand in the automotives sector Encouragement of sector-based R&D activities by the government Increasing number of MoUs signed to boost investment in steel Rising demand for consumer durables and capital goods Reduced custom duty and other favourable measures Foreign investment of nearly USD40 billion committed in the steel sector Note: FDI - Foreign Direct Investment
  • 25. Investment in infrastructure by the Planning Commission is expected to expand at a CAGR of 14.5 per cent over FY12– 17 Projected values of investment in infrastructure (USD billion) 191.4 investment to be USD1 trillion in the 12th Five-Year Plan (2012–17), from USD428 billion in the 11th Plan This increase in infrastructure investment is set to raise steel demand by roughly 40 MTPA during FY13–17 CAGR: 14.5% 169.0 149.1 114.1 131.2 FY13 FY14 97.3 FY12 FY15 FY16 FY17 Source: Planning Commission, Aranca Research Notes: MTPA - Million Tonnes Per Annum
  • 26. Over FY03-FY11, consumer durables has grown at a CAGR of 12.2 per cent as growth in disposable income resulted rise in their demand Capital goods and consumer durables are expected to grow at a 7.5 per cent to 8.8 per cent over 2012-2021 Automotives production expanded at a CAGR of 22.2 per cent over FY09–12 Commercial vehicles are the fastest growing segment with a CAGR of 29.8 per cent over the same period Over FY12-FY21, the automotive sector is projected to grow at a CAGR of 11.5 per cent to 12.5 per cent Consumer durables market size (USD billion) 30.2 T otal production of automobiles in India (million units) 7.3 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 14.2 5.1 9.7 Passenger vehicles Three wheelers & two wheelers FY12 2.4 FY11 3.1 0.9 3.0 0.8 2.4 0.6 FY10 1.4 FY09 FY03 11.1 4.2 8.9 3.2 3.8 1.8 0.4 2.9 3.5 16.3 5.2 4.7 21.0 6.3 CAGR: 12.2% FY16E FY21E Commercial vehicles Source: SIAM, JSPL May 2013 presentation, Corporate Catalyst India, Aranca Research Notes: E - Estimate; FY - Indian Financial Year (April - March)
  • 27. • National Steel Policy 2012 In view of the sector‟s changed dynamics, globally as well as domestically, the Ministry of Steel has initiated the process of drafting a new National Steel Policy to replace the existing National Steel Policy of 2005 • The government has set up a committee headed by the Steel Secretary to monitor the formulation of the new National Steel Policy • Four task forces have been constituted to study, analyses, consult and formulate draft policy documents on different aspects of the policy • The current policy draft proposes allotment of captive iron ore mines to producers through open bidding and putting some mines in the general category A new scheme, „The scheme for the promotion of R&D in the iron and steel sector‟, has been approved with budgetary provision of USD24.6 million to initiate and implement the provisions of the scheme as per the 11th Five-Year Plan • USD10.7 million had been spent under the scheme up to December 2012 • The development of technology for cold-rolled grain oriented (CRGO) steel sheets and other value-added products is also included under the policy purview and is allocated USD6.7 million • R&D and innovation Source: Ministry of Steel, Aranca Research
  • 28. Foreign Direct Investment Rise in export duty on iron ore • 100 per cent FDI through the automatic route is allowed in the Indian steel sector • The government hiked the export duty on iron ore to 30 per cent ad valorem on all varieties of iron ore* (except pellets) Source: Ministry of Steel, Aranca Research Notes: * - w.e.f. 30th December 2011
  • 29. • Export duty on iron ore has been increased to 30 per cent ad valorem on all varieties of iron ore (except pellets), to preserve iron ore resources for domestic use • As per the government‟s decision, the Government of India‟s 51 per cent shareholding in Eastern Investments Company Limited (EIL), under Bird Group of Companies, was transferred to RINL • • New Research and Development policy for the steel sector have been finalised/adopted for implementation New techno-economic benchmarks have been evolved on international patterns to improve performance of steel PSUs; implementation is being monitored closely • Under the Ministry, the Joint Plant Committee (JPC) studied 300 districts, 1,500 villages, 4,500 manufactures and 8,000 retailers spread over India‟s 28 states and 7 union territories to assess steel demand in the rural areas and examine the potential to increase steel consumption levels • The Ministry of Steel set up the Steel Innovation Council to promote innovative ideas in the steel sector • The New National Steel Policy for the forthcoming years is under finalisation • In April 2013, the Ministry of Steel signed a Letter of Intent (LoI) with the Tanzanian Government to strengthen cooperation in steel and mining activities Source: Ministry of Steel, Aranca Research Notes: W.E.F - With Effect From 30th December, 2011
  • 30. Developer Location Product Viraj Profiles Ltd Thane, Maharashtra Stainless steel engineering products Jindal Steel Ltd Kalinganagar Stainless steel Salem, Tamil Nadu Steel Jajpur, Orissa Metallurgical-based engineering and ancillary/downstream industry SAIL Salem SEZ Pvt Ltd Orissa Industrial Infrastructure Development Corporation Source: Formal approvals granted in the Board of Approvals after the SEZ rules coming into force,” Special Economic Zones in India website, www.sezindia.nic.in
  • 31. M&A scenario – details Period: 1 January 2012 to 21 June 2013 Deal type Number of deals Largest deal (USD million) Inbound 2 - Outbound 1 - Domestic 3 232.6 Cumulative FDI inflows Period: April 2000 to March 2013 Sector Metallurgical industries USD7.5 billion Per cent of total FDI inflow 3.9 Source: Thomson ONE Banker, “Fact Sheet On Foreign Direct Investment (FDI)”, Department of Industrial Policy and Promotion
  • 32. State MoUs signed (2011) Capacity addition (MTPA) Orissa 63 81.2 Jharkhand 49 105.1 Chhattisgarh 76 60.0 West Bengal 16 39.4 Karnataka 57 173.0 Andhra Pradesh 18 11.8 Other states 22 18.2* 301 488.6 Total Capacity addition plans 2012 Company Plans SAIL SAIL plans to invest USD27.3 billion in increasing capacity from 21.4 MTPA to 45 MTPA. In its recent expansion plan, the company modernised and expanded its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur, Burnpur and a special plant at Salem NMDC NMDC is setting up a greenfield integrated steel plant of 3 MTPA capacity in Nagarnar, Chhattisgarh at an estimated cost of about USD3.2 billion Source: Ministry of Steel, Annual Report 2011-12; Note: MTPA - Million Tonnes Per Annum, * - Estimated figures
  • 33. Jindal Steel and Power Limited Incorporated in 1979, Jindal Steel and Power Limited (JSPL) is an integrated steel producer and the largest coal-based sponge iron manufacturer in the world. The company has an installed steel production capacity of 3 MTPA. JSPL is engaged in manufacturing long products and is specialised in producing long rails for railways and large sized H-beams as well as columns for the infrastructure and construction sector Projected crude steel capacity in the 12th Plan (million tonnes) 11.5 10.0 8.0 CAGR: 25.1% 7.0 4.5 3.0 3.0 JSPL also has significant presence across the mining, power generation and infrastructure sectors • Achievements: • • 2011 – Ranked third in the Metals category of Business World‟s Most Respected Companies Survey, 2011 2010 – Rated the World‟s Second-Largest Value Creator by the Boston Consulting Group (BCG) and the World‟s Largest Value Creator in the Mining and Materials category FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: Company website (www.jindalsteelpower.com), Planning Commission, Aranca Research
  • 34. Financial growth (USD million) Sale of steel (million tonnes) 3,315 3.8 2.8 2.0 0.8 0.3 0.5 FY06 0.7 2.8 1.9 1.2 1.0 671 0.2 FY07 2,287 1,803 1.6 1.6 1.4 2.3 3,007 103 FY8 Finished steel products FY9 FY10 FY11 Semi steel products FY12 Pellets FY06 816 197 FY07 818 431 FY08 438 721 395 FY09 FY10 FY11 Gross revenue PBIDT FY12 FY13 Source: Company website (www.jindalsteelpower.com) Notes: Company clubs iron and steel segment „s performance; PBIDT (Profit Before Interest, Depreciation and Tax)
  • 35. Strong diversified customer base of 2,758 customers TMT Re-bars Expansion in international markets Wire rods Foray into the oil & gas and cement sectors as a part of diversification FY 13–14 Steel capacity to rise from 3.5MTPA to 7.0MTPA Plate and coils Organic growth through capacity additions Column sections FY08 ISO 9001:2008 accreditation Hot-rolled parallel flange beams The iron and steel segment continues to be a major contributor (~75%) 1991 Commenced operations Long track rails 1991 1993 1995 1997 1999 2002 2006 2010 2012
  • 36. Bhushan Steel Limited Projected crude steel capacity in the 12th Plan (million tonnes) Established in 1983, Bhushan Steel Limited (BSL) is the third-largest secondary steel producer in India. The company has an existing steel production capacity of 2.5 MTPA. It primarily manufactures flat steel products for the automobile industry Products – Cold-rolled closed annealed coils, galvanised coils and sheets, high tensile steel strapping, colour coated coils, galume sheets and coils, hardened and tempered steel strips, billets, sponge iron, precision tubes and wire rods • 5.0 5.0 5.0 5.0 FY14 FY15 FY16 FY17 4.5 2.2 2.5 Milestones: • 2004 – Commissioned secondary steel production at Khapoli, Maharashtra • 2006 – Commissioned primary steel production at Meramandali, Odisha • 2006 – Commissioned secondary steel production at Sahibabad, Uttar Pradesh FY11 FY12 FY13 Source: Company website (www.bhushansteel.com), Planning Commission, Aranca Research
  • 37. Financial growth (USD million) Production of steel (million tonnes) 2,251 2.1 1,662 1.8 1.6 1.2 1,161 1,178 1.0 1,266 11 6 17 8 1.1 928 1,541 10 5 693 35 FY06 FY07 FY08 FY09 FY10 FY11 FY12 69 FY07 92 FY08 FY09 Gross revenue 221 FY10 FY11 213 FY12 9MFY13 NPAT Source: Company website (www.bhushansteel.com), Aranca Research Notes: NPAT - Net Profit After Tax
  • 38. Technological upgradation and further capacity addition Other developed products Capacity expansion (0.9 MT to 2.5 MT) S on kin ron Ironpmage ig and castings Partnership with Japanese steel producer, Sumitomo Alloy billets Alloy steel Color coated tiles Wheel, pipes and tyre and FY06 Primary steel production in Odisha Organic growth in steel and flat products axle plant (railways) Galvanised FY12 USD2.5 billion turnover 1989 Secondary steel production in UP Strong diversified customer base of 3,300 customers Cold-rolled 1989 1991 1993 1995 1997 1999 2002 2006 2010 2012
  • 39. T Steel Limited ata Projected crude steel capacity in the 12th Plan (million tonnes) Established in 1907 by the visionary founder – JN Tata, Tata Steel is among the top ten global steel companies with an annual crude steel capacity of over 28 MTPA 20.0 17.5 The company caters to sectors such as automotive, construction, consumer goods, engineering, packaging, energy & power, ship building, rail and defense & security • Milestones: • 2007 – Tata Steel and Corus were integrated at USD12 billion, making Tata Steel one of the top ten global steel producers 11.0 9.2 6.8 7.6 2009 – Tata Ryerson and HMPCL merge with Tata Steel • CAGR: 19.7% 15.1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: Company website (www.tatasteel.com), Planning Commission, Aranca Research
  • 40. Financial growth (USD million) Production and sales of steel division (million tonnes) 7.9 7.5 6.7 6.4 7.0 6.6 6.4 7.1 7.2 5.9 5.6 5.8 6.2 4.9 4.8 4.9 4.8 5.4 4.6 4.4 4.5 5.2 3.9 0.8 FY06 FY07 FY08 FY09 FY10 Production FY11 Sales FY12 FY13 FY06 0.9 FY07 1.2 1.1 1.1 FY08 FY09 NPAT FY10 1.5 1.4 FY11 FY12 Gross revenue Source: Company website (www.tatasteel.com), Aranca Research Notes: NPAT - Net Profit After Tax
  • 41. Developed products Technological upgradation Iron making and Capacity expansion (3 MT) castings Diversification (coal injection unit) Alloy steel Wheel, tyre and axle plant (railways) Pig iron and steel ingots FY13 USD7.0 billion turnover* M&A (Tata-Corus) Organic growth in steel 1912 Production capacity (1.6 lakh tonnes) FY06 USD3,625 million turnover Announced plans to merge Tata Metaliks Ltd and Tata Metaliks Kuboto Pipes Ltd with itself in April 2013 Blast furnace 1912 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013 Source: Company website (www.tatasteel.com), Aranca Research, * - Revenues from Indian operations Note: M&A - Mergers and Acquisitions
  • 42. JSW Steel Projected crude steel capacity in the 12th Plan (million tonnes) Established in 1994, JSW Steel Ltd manufactures iron and steel products in India and abroad Products – Hot-rolled coils, plates and sheets; cold-rolled coils and sheets; galvanised sheets and coils; pre-painted galvanised coils, sheets and galvanised sheets • 17.6 CAGR: 8.8% 13.23 14.3 14.3 14.3 FY13 FY14 FY15 18.4 11.1 Achievements: • 2011 – National Sustainability Award by the Indian Institute of Metals • 2009 – Gold Award in the Metal and Mining sector • 2008 – National Energy Management Award instituted by CII FY11 FY12 FY16 FY17 Source: Company website (www.jsw.in), Planning Commission, Aranca Research
  • 43. Financial growth (USD million) Product group-wise sales (million tonnes) 7,221 6.9 7,137 5.9 5,228 4.7 4,053 3,162 2,631 1.5 1.71 1,417 1,937 1.1 0.3 0.4 0.3 Semis 178 Rolled Flats FY11 FY12 Rolled Longs FY13 FY06 269 FY07 360 FY08 421 96 FY09 FY10 Gross revenue 419 FY11 339 FY12 332 FY13 NPAT Source: Company website (www.jsw.in)
  • 44. Hot-rolled Capacity addition 7.8 MT Cold-rolled JV formed to explore, develop & mine iron ore with MML Wire rods TMT Re-bars Organic growth and integration 1994 ISO accreditations Galvanised product Special steel bars FY06 USD1,417 million turnover 1994 Production capacity (1.25 MTPA) FY 13 USD7.1 billion turnover FY 14 Saleablesteel sales to rea h c 9.75 million tonnes 1994 1995 1996 1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013 Notes: JV - Joint Venture, TMT - Thermo Mechanically Treated, MML - Mysore Minerals Limited, MTPA - Million Tonnes Per Annum
  • 45. Automotive • The automotives industry is forecasted to grow in size by USD122–159 billion by 2016 Capital goods • • With increasing capacity addition in the automotive industry, demand for steel from the sector is expected to be robust • Infrastructure The capital goods sector accounts for 11 per cent of steel consumption, and has the potential to increase in tonnage and market share • The government aims Corporate India‟s capex is expected to grow and generate greater demand for steel • Due to such a huge to increase infrastructure spending from 8.4 per cent of GDP in FY11 to 10.7 per cent by FY17 investment in infrastructure the demand for long steel products would increase in the years ahead Airports • More and more modern and private airports are expected to be set up • Development of Tier- II city airports would sustain consumption growth • Estimated steel consumption in airport building is likely to grow more than 20 per cent over next few years Note: Capex – Capital Expenditure
  • 46. Railways • The dedicated rail freight corridor network (DRFC) expansion would be enhanced in future • Gauge conversion, setting up of new lines and electrification would drive steel demand Oil and gas Power Rural India liquid fuel transportation pipeline network is likely to grow from the present 16,800 km to 22,000 km in 2014 • The government aims • This would lead to an • Both generation and increase in demand of steel tubes and pipes, providing a lucrative opportunity to the steel industry transmission capacities would be enhanced, thereby raising steel demand from the sector • The • Rural India, accounting for 70 per cent of Indian population has low steel per capita which consumption provides huge scope for growth • Policies like Bharat Nirman and Rajiv Gandhi Awaaz Yojna are driving growing demand for construction steel in rural India to add 71,000– 1,07,500 MW (Mega Watt) of capacity during the 12th FiveYear Plan Source: Planning Commission, Aranca Research
  • 47. Current state of Global Steel Industry  1/17/2014 11:29:09 AM Prepared by Gsdhir 47
  • 48. Steel Capacity Outgrows Demand Growth  During 2000~2012, global crude steel capacity ∆ 1,013 Mt to reach 2,063 Mt, whereas crude steel production ∆ 683 MT to 1,532 Mt  Chinese capacity ∆ 771Mt to 921 Mt, production ∆ 602 Mt to 731 Mt  After the global economic crisis, capacity expansion momentum slows, but the emerging economies continue to seek expansion Steed Demand vs Capacity (2000=100) Apparent steel use, crude steel equivalent Capacity, crude steel 2000=100 220 200 180 160 140 120 1/17/2014 11:29:09 AM Prepared by Gsdhir 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 100 48
  • 49. Return of Overcapacity  While world steel demand continues to grow, capacity utilization ratio trends down  No easy solutions to overcapacity in sight 100% World crude steel capacity utilisation Jun-08 92.7% 90% Apr-10 84.5% Apr-11 83.4% Sep-13 79.3% 80% Aug-10 74.2% 70% Dec-12 71.5% 60% Dec-08 59.9% 1/17/2014 11:29:09 AM Prepared by Gsdhir Jul-13 Jan-13 Jul-12 Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 Jan-09 Jul-08 Jan-08 50% 49
  • 50. Raw Materials Side Adds to Adversity  Value chain profits has been shifting away from the steel industry  Volatility and uncertainty in raw materials prices since departure from the benchmarking pricing system value chain profit pool split evolution 100%= Iron ore Coking coal 54 8 11 23 125 156 17 44 7 81 135 15 42 46 22 Steel making (HRC) 230 22 78 28 32 61 35 27 26 1995 2000 2005 10 2011 2017 Source: McKinsey & Company 1/17/2014 11:29:09 AM Prepared by Gsdhir 50
  • 51. Steel Industry Performances Steel vs Raw materials prices Index 2005=100 1/17/2014 11:29:09 AM Steel industry stocks vs Dow Jones Index 2005=100 Prepared by Gsdhir 51
  • 52. Steel Demand Forecasts for 2013-14 Apparent Steel Use, finished steel (SRO October 2013) Mt y-o-y % growth % Mt 14.0 15 10 1 403 1 219 5 125.0* 1 523 1 400 1 200 1 300 1 219 1 141 7.0 1 430 1 475 1 600 7.9 1 000 3.1 0 3.3 2.0 800 600 0.0 400 -5 200 -6.4 -10 0 2007 2008 2009 2010 2011 2012 2013 2014 *) 2014 as % of 2007 1/17/2014 11:29:09 AM Prepared by Gsdhir 52
  • 53. Demand Forecasts for selected countries Apparent Steel Use, finished steel (SRO October 2013) Mt % 2012 2013 2014 12/11 13/12 14/13 2014 as % of 2007 1,430.3 1,475.1 1,523.2 2.0 3.1 3.3 125.0 96.2 96.9 99.8 7.8 0.7 3.0 92.2 140.2 134.9 137.8 -9.5 -3.8 2.1 69.1 63.9 64.0 63.0 -0.2 0.1 -1.6 77.6 660.1 699.7 720.7 2.9 6.0 3.0 172.2 71.6 74.0 78.2 2.6 3.4 5.6 151.8 25.2 26.0 27.0 0.6 3.2 3.8 122.3 54.8 57.3 60.4 12.8 4.6 5.4 149.7 63.2 64.3 69.0 2.2 1.7 7.3 127.2 Developed Economies 390.2 384.1 390.5 -1.7 -1.6 1.7 82.4 Emerging & Developing Economies excl China World excl. China 380.0 391.4 412.1 4.2 3.0 5.3 126.0 770.2 775.4 802.6 1.1 0.7 3.5 100.3 World United States European Union (27) Japan China India Brazil ASEAN (5) MENA 1/17/2014 11:29:09 AM Prepared by Gsdhir 53
  • 54. Key Trends in Post-Crisis Period Steel Demand  Multi-speed recovery continues driven by emerging economies, but weakening growth in the emerging world  Eurozone stabilizes and finally positive growth expected in 2014  China moves into slower growth phase  Key emerging economies struggling with structural issues Multi-Speed Recovery of Steel Demand 180 2007=100 World China Developed Economies Em. & Dev Economies excl. China . 160 140 120 100 80 60 2007 1/17/2014 11:29:09 AM 2008 2009 2010 201 1 Prepared by Gsdhir 2012 2013 2014 54
  • 55. Regional Share in World Steel Demand Apparent Steel Use, finished steel (SRO October 2013) Emerging & Developing Economies Developed Economies China 2000 2001 41.5% 58.5% 16.4% 2002 2003 53.9% 20.5% 46.1% 2004 2005 2006 51.5% 23.3% 48.5% 2007 2008 2009 47.8% 27.4% 52.2% 2010 2011 47.0% 28.3% 53.0% 2012 2013 2014 41.7% 33.3% 33.1% 1/17/2014 11:29:09 AM 58.3% 58.4% Prepared by Gsdhir 41.6% 11 55
  • 56. China Entering a New Phase of Development  After soft landing, renewed focus on rebalancing of the economy  Less steel intensive growth to come, implying steel demand growth will underperform GDP growth  Future focus will be on capacity closures, environmental performance and upgrading Growth trend of China’s steel use 1/17/2014 11:29:09 AM Steel intensity (ASU/GDP) Prepared by Gsdhir 56
  • 57. Economic Growth and Steel Demand S-Curve of different countries Thailand China Indonesia United States Japan South Korea India Per Capita Steel Use finished steel, kg, 2012 ASU per capita, ASU, crude steel equivalent per capita, kg 1 400 488 506 1 200 1 000 305 279 222 Japan 220 127 600 40 57 400 Africa United States India 200 Brazil Middle United EU (27) China East States Japan World 0 0 10 20 30 GDP per capita, 2005 PPP$, 1/17/2014 11:29:09 AM 40 50 thousands USD Prepared by Gsdhir 57
  • 58. How Far Will Chinese Steel Demand Grow? Positive Further room for urbanization and Industrialization Low level of development in the West Negative Condensed growth, high share of investment in GDP Environmental regulations, resource constraints Manufacturing relocation out of China Speed and mode of development in the West China provincial steel use per capita (2011, kg/per, crude steel equiv ) China (2012) US (1973) 1/17/2014 11:29:09 AM Japan (1973) Prepared by Gsdhir 58
  • 59. End of the China Effect, Next Growth Engine? Evolution of Steel Demand (1950-2014, crude steel equiv) Mt CAGR 2007-2014 3.1% 1 800 1 600 RoW CAGR 2000-2007 6.6% 1 400 1 200 China CAGR 1975-2000 1.1% 1 000 former USSR CAGR 1950-1975 5.0% 800 600 US, EU, Japan 400 200 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 1950 0 Contribution to Apparent Steel Demand Growth( ∆ Mt) World Developed China Other Emerging 1992-2000 142.6 84.1 51.1 7.4 2000-2007 480.3 74.2 297.8 108.4 2007-2014 320.2 -85.5 314.8 90.9 1/17/2014 11:29:09 AM Prepared by Gsdhir 59
  • 60. Developing World: Strong Fundamentals Population (million) Urbanisation (%) GDP per capita, (PPP$) Steel Use/ capita(Kg) 2012 Mexico Turkey Brazil Thailand China Indonesia India Vietnam 1/17/2014 11:29:09 AM 2020 2010 2020 2012 2020 2012 116 126 77.8 80.5 14.4 17.3 173 75 81 70.5 78.6 14.1 17.9 382 198 210 84.3 86.8 11.0 13.8 127 70 72 33.7 38.0 9.4 12.9 234 1 354 1 388 49.2 61.0 9.0 15.3 488 245 263 49.9 57.2 4.7 6.7 51 1 258 1 387 30.9 34.8 3.7 5.7 57 90 96 30.4 36.9 3.4 5.1 122 Prepared by Gsdhir 60
  • 61. Environmental Challenges  Energy use reduction efforts in developed world already at theoretical limit and limited progress in Break-Through technologies. Pressure on costs and also negative impact on steel demand growth  However. steel has been successful in providing solutions to the sustainability - lighter vehicles, renewable energy, etc … Energy Intensity of steel production (NAmerica+Japan +EU27) 1/17/2014 11:29:09 AM Energy intensity of iron and steel production (GJ/t of crude steel) Prepared by Gsdhir 61
  • 62. Steel as Solution to Sustainable Future  Innovative use of steel saves six times as much CO2 as is caused by the production of the steel → LCA approach Case study 1 2 Energy industry 3 4 Traffic HH, ind., CTS1 5 6 Emissions in the steel production3 Net CO2 reduction potential Efficient fossil fuel PPs 29.5 Wind power plants 0.03 1.9 14 : 1 1.3 : 1 8.4 11.2 0.9 1.1 : 1 1.0 1.0 9:1 9.2 Combined heat/power 0 3:1 0.7 Weight reduction cars 7 ~ 200 : 1 0.1 2.1 Weight reduction trucks 32 : 1 0.4 5.0 Other renewables2 Efficient e-motors ~ 400 : 1 <0.1 14.2 Efficient transformers Ratio between CO2 reduction/emission4 5 10 30 0 Mt 8 1 9 10 11 Mt 6:1 1.HH = households; CTS = commerce, trade, and service 2. Geothermal, biomass, hydro 3. CO 2 expenditure for other materials not examined; values are rounded 4. Ratio relates exclusively to the emissions Source: BCG analysis 1/17/2014 11:29:09 AM Prepared by Gsdhir 62
  • 63. Long Term View on Steel Demand  Global steel demand could reach 2.2~3.0 billion in 2050 Long T erm Evolution of World Steel Demand Years 1970 589 1975 640 1980 713 1985 719 1990 773 1995 743 2000 846 2005 1 139 2010 Mt Mt 1 404 2012 1 542 3 000 2 500 2 000 1 500 1 000 500 0 1870 1890 1910 1930 1950 1970 1990 2010 2030 2050 *apparent steel use, crude steel equivalent 1/17/2014 11:29:09 AM Prepared by Gsdhir 63
  • 64. Conclusion  Despite current difficulties, future scenarios for the steel industry have optimistic starting point: Urbanization and population growth will support industry growth for considerable time  Surplus capacity in the industry will be difficult to reduce quickly, but can be absorbed in long term  Steel industry will continue to provide the basis for sustainability of the modern society through innovation  But the industry is facing formidable challenges ahead  Changing position in value chain through expanding product mix, development of new applications becomes crucial for steel industry  Sustainable development and, in particular, Life Cycle Assessment focus provides interesting challenges to the steel industry 1/17/2014 11:29:09 AM Prepared by Gsdhir 64
  • 65. Technological Developments in Iron and Steel Industry Emerging Energy-efficiency and Carbon Dioxide Emissions-reduction technologies for the Iron and Steel Industry  Iron and steel manufacturing is among the most energy-intensive industries and accounts for the largest share, approximately 27 percent, of global carbon dioxide (CO2) emissions from the manufacturing sector. The ongoing increase in world steel demand means that this industry’s energy use and CO2 emissions continue to grow, so there is significant incentive to develop, commercialize and adopt emerging energy-efficiency and CO2 emissions-reduction technologies for steel production. Although studies from around the world have identified a wide range of energyefficiency technologies applicable to the steel industry that have already been commercialized, information is limited and/or scattered regarding emerging or advanced energy efficiency and low-carbon technologies that are not yet commercialized. This report consolidates available information on 56 emerging iron and steel industry technologies, with the intent of providing a well-structured database of information on these technologies for engineers, researchers, investors, steel companies, policy makers, and other interested parties. For each technology included, we provide information on energy savings and environmental and other benefits, costs, and commercialization status; we also identify references for more information. 1/17/2014 11:29:09 AM Prepared by Gsdhir 65
  • 66. Category of steel: Carbon Steels- contain trace amounts of alloying elements and account for 90% of total steel production Low Carbon Steels/Mild Steels contain up to 0.3% carbon Medium Carbon Steels contain 0.3 – 0.6% carbon High Carbon Steels contain more than 0.6% carbon Alloy Steels- contain alloying elements (e.g. manganese, silicon, nickel, titanium, copper, chromium and aluminum) Stainless Steels- contain between 10-20% chromium Tool Steels- contain tungsten, molybdenum, cobalt and vanadium in varying quantities
  • 67. No. Report Section/Technology Name Commercialization status 3.1. Emerging Agglomeration Technologies 1 3.1.1. Use of Biomass in the Sintering Process Demonstration 3.2. Emerging Coke-making Technologies 2 3.2.1. Single-chamber-system Coking Reactors Demonstration 3 3.2.2. Battery Under-firing with Advance Diagnostics and Control Development 3.3. Emerging Technologies for Ironmaking Using Blast Furnace 4 Pilot 5 3.3.2. Blast Furnace Optimization by Using Computational Fluid Dynamics Modeling Demonstration 6 3.3.3. Blast Furnace Optimization by Using X-ray Diffraction Analytical Technique Demonstration 7 3.3.4. Blast Furnace Heat Recuperation Demonstration 8 3.3.5. Plasma Blast Furnace Development 9 10 3.3.1. Hot Oxygen Injection 3.3.6. Blast Furnace Slag Heat Recovery Pilot/ Development 3.4.7. Charging Carbon Composite Agglomerates Demonstration 3.4. Alternative Ironmaking Technologies 11 3.4.1. COREX® Process Commercial with very low adoption rate 12 3.4.2. FINEX® Process Commercial with very low adoption rate 13 3.4.3. Tecnored Pilot 14 3.4.4. ITmk3 Ironmaking Process Demonstration 15 3.4.5. Paired Straight Hearth Furnace Development 16 3.4.6. Coal-Based HYL Process- A Syngas based DRI Plant Commercial with very low adoption rate 17 3.4.7. Coal-Based MIDREX Process Demonstration 18 3.4.8. Fine Ore Reduction in the Circulating Fluidized Bed (Circored® and Circofer®) Demonstration/Pilot 19 3.4.9. Cyclone Converter Furnace Pilot 20 3.4.10. Producing Iron by Electrolysis of Iron Ore (Molten Oxide Electrolysis) Research/Development 21 3.4.11. Suspension Hydrogen Reduction of Iron Oxide Concentrate Research/Development 22 3.4.12. Ironmaking using Biomass and Waste Oxides Research 3.5. Emerging Technologies for Steelmaking Shops 23 3.5.1. Sensible Heat Recovery from Electric Arc Furnace Off Gases Commercial with very low adoption rate/ Pilot 24 3.5.2. Electrochemical Removal of Zinc from Steel Scrap Demonstration 25 3.5.3. Continuous Horizontal Sidewall Scrap Charging Pilot 26 3.5.4. New Scrap-Based Steelmaking Process Predominantly Using Primary Energy Development 27 3.5.5. ECOARCTM Demonstration 28 3.5.6. Optimization of Basic Oxygen Furnace and Electric Arc Furnace Post Combustion Using Computational Fluid Dynamics Modeling Pilot 29 3.5.7. Improving the Energy Efficiency of Electric Arc Furnaces through Laser- Pilot 1/17/2014 11:29:09 AM 3 Prepared by Gsdhir
  • 68. No. 30 31 32 33 34 35 Report Section/Technology Name based Optimization of Post Combustion 3.5.8. Model-based Steel Temperature Measurement for Electric Arc Furnaces 3.5.9. In-Situ Real-Time Measurement of Melt Constituents 3.9.10. Injection of plastic waste in Blast Furnaces 3.9.11. Injection of Plastic Waste in the Electric Arc Furnace 3.9.12. Use of Waste Tires in EAF Commercialization status Development Development Demonstration Pilot Commercial with very low adoption rate 3.6.4. Continuous Steelmaking for Electric Arc Furnace 3.6. Emerging Casting Technologies 3.6.1. Near-net-shape Casting/Strip Casting Research 37 3.6.2. Continuous Temperature Monitoring and Control in Continuous Casting 3.7. Emerging Rolling and Finishing Technologies Development 38 3.7.1. High-Temperature Membrane Module for Oxygen Enrichment of Combustion Air for Fuel-Fired Industrial Furnaces Pilot 39 40 41 3.7.2. Next-generation System for Scale-Free Steel Reheating 3.7.3. Thermochemical Recuperation for Steel Reheating Furnaces 3.7.4. Hot Strip Mill Model Research Research Commercial with very low adoption rate 42 3.7.5. Innovative Reheating Furnace Management Using a Continuous Burn-Out Measuring System Pilot 43 44 3.7.6. Oxygen-rich Furnace System for reduced CO2 and NOx emissions 3.6.2. HotEye® Steel Surface Inspection System Development Commercial with very low adoption rate/ Development 45 3.7.7. NOx Emission Reduction by Oscillating Combustion 3.8. Emerging Recycling and Waste Reduction Technologies 3.8.1. Recycling Basic Oxygen Furnace Slag 3.8.2. Rotary Hearth Furnace Dust Recycling System 3.8.3. Recycling of Stainless Steel Dust by Injection into Electric Arc Furnace 3.8.4. Regeneration of Hydrochloric Acid Pickling Liquor 3.8.5. Recycling of Waste Oxides in Steelmaking Furnace Pilot 36 46 47 48 49 50 Commercial with very low adoption rate Development Demonstration Pilot Pilot Pilot 3.9. Carbon Capture and Storage Technologies for the Iron and Steel industry 51 52 53 54 55 3.9.1. Top-gas Recycling in Blast Furnaces with Carbon Capture and Storage 3.9.2. Advanced Direct Reduction with Carbon Capture and Storage (ULCORED) 3.9.3. HIsarna with Carbon Capture and Storage 3.9.4. Post-combustion Carbon Capture Using Chemical Absorption Technologies 3.9.5. Geological Sequestration of Carbon Dioxide Using Basic Oxygen Furnace and Electric Arc Furnace Slag Pilot Development Pilot Development Research 56 3.9.6. Integrating Steel Production with Mineral Sequestration Research 1/17/2014 11:29:09 AM 4 Prepared by Gsdhir
  • 69. THANK YOU 1/17/2014 11:29:09 AM Prepared by Gsdhir 69

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