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Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
Chrome Alloy Scenario In India (Asian Stainless Steel Conference)
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Chrome Alloy Scenario In India (Asian Stainless Steel Conference)

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Presentation for 5th Asian Stainless Steel Conference, in Tianjin:China …

Presentation for 5th Asian Stainless Steel Conference, in Tianjin:China
SMR - Steel & Metals Market Research

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  • 1. Prabhash Gokarn, Tata Steel, India Chrome Alloy Scenario In India May 2010
  • 2. May 2010 This presentation is an amalgamation of the author’s own views. Tata Steel does not necessarily subscribe to the views expressed in the presentation and the views should not be taken as company policy.
  • 3. <ul><li>Chrome Discovery </li></ul><ul><li>Nicolas-Louis Vauquelin in 1797 </li></ul><ul><li>Chromium-iron spinel now known as chromite (FeOCr 2 O 3 ). </li></ul><ul><li>Colorful salts : name derived from “khrôma” Greek word for colour. </li></ul><ul><li>In 1798-99, Lowitz & Klaproth independently discovered chromium from the Beresof Mines South-Eastern France. </li></ul><ul><li>Stainless Steel </li></ul><ul><li>Corrosion resistance of iron-chromium alloys first recognized in 1821 by the French metallurgist Pierre Berthier </li></ul><ul><li>1890s – 1915 : various patents for different iron – chromium stainless alloys . Harry Brearley usually credited with first patent for Martensitic stainless steel in 1915, & Dr Hatfield with invention of 18/8 type Austenitic Stainless Steel. </li></ul>May 2010
  • 4. May 2010 Chrome : Usage Source : ICDA, USGS 94% 94% of total chrome used in metallurgical applications - prime demand driver Chromite - Uses 70% of chrome used in metallurgical applications - is for making stainless steel 18% is for making alloy steel 3% 2% 1%
  • 5. May 2010 Global Chrome Reserves India in The Global Chrome Market (1) Global Chrome Alloy Production CY09 India has a total chrome ore reserve of 213 million MT (proved 31mill MT, probable 35 mill MT, recoverable 66 mill MT). 98% in state of Orissa India has a total chrome alloy production capacity of 876 MVA, Prodn in 2009 : 6,05,000 MT 70% in state of Orissa Chinese LAM Coke preferred Power cost & availability concerns
  • 6. May 2010 India in The Global Chrome Market (2) 60% 80% 50% 32% 60% < 10% Chrome Ore/Concentrate Ferro Chrome India has moved from mainly a supplier of Chrome Ore/Concentrate to a global supplier of Ferro Chrome. Today, most chrome ores are used within India. Domestic consumption of ferro chrome has remained more or less stagnant, due to slow growth of the SS & Alloy steel industry. Share of FeCr used within the country has dropped to one-third.
  • 7. May 2010 India in The Global Chrome Market (3) Production capacity 2.5 mil MT. Product mix- 75% Flat :25% Long. 76% output in 200 series. 10% in 400 series fast growing Majority from Private enterprises which mainly produce Flat products. 5% production from Govt enterprises who are mostly in Long products In 2009 SS production expected : little over 2 mill MT SS Exports 0.5 million MT, mainly Bright Bars, Utensils.
  • 8. May 2010 China in The Global Chrome Market (1) Chrome Ore Insignificant Chrome Ore Reserves compared to India Chrome ore production < 3 lakh MT, mainly used for refractory & chemical applications. Imports Chrome Ore from mainly S Africa, Oman. Imports from India have reduced sharply. Ferro Chrome Turned a net importer of HC Ferro Chrome from 2002. Significant imports from India. Quantum jump in HC FeCr imports in last 2 years. Significant producer of Silico Chrome & LC FeCr
  • 9. May 2010 China in The Global Chrome Market (2) <ul><li>Total production capacity 13 million MT; one-third of global capacity </li></ul><ul><li>Flats : 7 million MT - State Owned Joint enterprises </li></ul><ul><li>Longs : 6 million MT – mostly private enterprises </li></ul><ul><li>SS production expected 8 mill MT, capacity utilisation of 62%. </li></ul><ul><li>Significant exports. China now the world’s largest SS Player . </li></ul>SS Production In China grew at a CAGR of @22% (2005-2009)
  • 10. China’s dependence on India in Chrome Ore or Chrome Alloys May 2010 China in The Global Chrome Market (2) – India Factor <ul><li>India’s spend share as supplier of Chrome Ore & Concentrate to China </li></ul><ul><li>2005 : 32%, 2007 : 16%, 2009 : 7% </li></ul><ul><li>India’s spend share as supplier of Ferro Chrome to China- </li></ul><ul><li>2005 : 28%, 2007 : 14%, 2009 : 17% </li></ul><ul><li>Share of India’s Ferro Chrome export to China as part of India’s total production increased to a level of 60% </li></ul><ul><li>China prefers Indian Ferro Chrome : </li></ul><ul><ul><ul><ul><li>High grade </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Short Sailing Time </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No Seasonal Effect </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Time zone advantage </li></ul></ul></ul></ul><ul><li>Domestic FerroChrome Demand </li></ul><ul><li>Demand in India for ferro chrome has not grown significantly as yet : growing from 1.7 mill MTPA to 2.5 mill MTPA (2000-2009) </li></ul>
  • 11. ¿ Quo Vadis ? May 2010
  • 12. May 2010 Ferro Chrome : India catching up with China China turned a net importer of HC Ferro Chrome from India since 2002, with a quantum jump in HC FeCr imports in last 2 years. Significant increase in FeCr production within India forecast, India will catch up with China by 2013.
  • 13. <ul><li>Stainless Steel : </li></ul><ul><li>China SS growth to slow to 6-8% CAGR between 2010 – 2015 </li></ul><ul><li>Significant opportunity for India to emulate growth of China during 2005-2009 (@22). </li></ul><ul><li>However, most optimistic projections for Stainless Steel by ISSDA @12% CAGR </li></ul>May 2010 Source ISSDA Projected Stainless Steel Growth China India Year Flat Long Total 2005 1001 153 1154 2010 1685 373 2058 2015 3185 900 4085
  • 14. May 2010 The Changing Chrome Relationship Between India and China
  • 15. May 2010 <ul><li>Rapid increase in Ferro chrome demand in China and India will boost Ferro Chrome production in India in a big way. </li></ul><ul><li>An opportunity exists for India to grow like China did in the global Stainless Steel arena, and emerge as a big global producer, consumer and exporter of stainless steel. </li></ul>
  • 16. THANK YOU May 2010

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