Tsl And Ss Manufactures Presentation

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Ferrochrome &
Stainless Steel : Brightening
India’s future
Tata Steel Ferro Alloys & Minerals participated in India’s first international Stainless Steel fair held at Ahmedabad between Jan 16 – Jan 19, 2009.

FAMD’s stall at the fair (titled “Making Steel Stainless”) showcased Tata Steel as being among the top 6 global chrome players and the largest manganese alloy player in India.

Amongst the visitors to Tata Steel’s stall, were the steel minister, Shri Virbhadra Singh and Chairman, SAIL, Mr S K Roongta; apart from the who’s who of the Stainless Steel industry of India, and international delegates (from China, EU, Bhutan, Japan, US, UK, Bangladesh, Pakistani, Sri Lanka).

FAMD also participated in the B2B session with Stainless Steel producers and presented this paper

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Tsl And Ss Manufactures Presentation

  1. 1. INDINOX 2010 Ferrochrome & Stainless Steel : Brightening India’s future Prabhash Gokarn Head (M&BD), FAMD, Tata Steel Ltd
  2. 2. Tata Steel Ferro Alloys & Minerals participated in India’s first international Stainless Steel fair held at Ahmedabad between Jan 16 – Jan 19, 2009. FAMD’s stall at the fair (titled “Making Steel Stainless”) “Making Stainless”) showcased Tata Steel as being among the top 6 global chrome players and the largest manganese alloy player in India. Amongst the visitors to Tata Steel’s stall, were the steel minister, Shri Virbhadra Singh and Chairman, SAIL, Mr S K Roongta; Roongta; apart from the who’s who of the Stainless Steel industry of India, and international delegates (from China, EU, Bhutan, Japan, US, UK, Bangladesh, Pakistani, Sri Lanka). FAMD also participated in the B2B session with Stainless Steel producers and presented this paper
  3. 3. View Of FAMD TATA STEEL STALL AT THE INDINOX FAIR Mr Virbhadra Singh, Steel Minister at FAMD Stall / Mr SK Roongta, Chairman SAIL at FAMD Stall Roongta,
  4. 4. This presentation is an amalgamation of 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.
  5. 5. Chrome Alloy Scenario In India
  6. 6. Chrome Discovery • Nicolas-Louis Vauquelin in 1797 Nicolas- • Chromium-iron spinel now known as chromite (FeOCr2O3). Chromium- • Colorful salts : name derived from “khrôma” “khrôma” Greek word for colour. colour. • In 1798-99, Lowitz & Klaproth independently discovered 1798- chromium from the Beresof Mines South-Eastern France. South- Stainless Steel • Corrosion resistance of iron-chromium alloys first recognized in 1821 by iron- the French metallurgist Pierre Berthier • 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.
  7. 7. Chrome : Usage Industrial uses & Intermediate Products - Chromite Refractory Chemical Metallurgical Foundry Sands Cement kiln Chrome Plating Ferrous Alloys Fiberglass furnace Corrosion control -Cast Iron Glass tank regenerator Metal finishing -Steel : Mag-chrome refractories Pigments alloy Others Tanning Chemicals stainless (Chromates, Non ferrous alloys Di-chromates) Aluminium Others Copper 94% Nickel Others Chromite - Uses Foundry 70% of chrome used in Sands 3% 95% of total chrome metallurgical applications - used in metallurgical is for making stainless Refractory 1% Chemical applications - prime steel Metallurgic 2% al demand driver 18% is for making alloy 94% steel Source : ICDA, USGS
  8. 8. India in The Global Chrome Market (1) India, 1% Other, 5% Russia, Others, 5% S Africa, 7% Khazak, 35% 8% India, 11% Zimb, 12% S Africa, 74% Kazak, China, 17% 25% Global Chrome Reserves Global Chrome Alloy Production CY09 India has a total chrome ore India has a total chrome alloy reserve of 213 million MT production capacity of 876 MVA, (proved 31mill MT, probable 35 Prodn in 2009 : 6,05,000 MT mill MT, recoverable 66 mill MT). 70% in state of Orissa 98% in state of Orissa Chinese LAM Coke preferred Power cost & availability concerns
  9. 9. India in The Global Chrome Market (2) 45 90 30 40 Chrome Ore/Concentrate 80 Ferro Chrome 44 26 33 35 22 70 22 35 34 30 22 25 60 32% 25 60% 50 20 80% 40 50% 15 30 13 20 38 10 9 60% 10 10 18 19 5 10 6 6 5 < 10% 0 0 1 2 3 4 5 Cr Ore/Conc 2005 2006 2007 2008 Export to China Export ROW Used inside India FeCr Export to China FeCr Export to ROW Used inside India 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. one-
  10. 10. India in The Global Chrome Market (3) Production capacity 2.5 mil MT. Product mix- 75% Flat :25% Long. 76% output in 200 series. mix- 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 1.8 to 2.4 mill MT (figures from different sources!!). sources!!). SS Exports 0.5 million MT, mainly Bright Bars, Utensils.
  11. 11. 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
  12. 12. China in The Global Chrome Market (2) 8000 SS Prodn In China grew at a 6,940 CAGR of @22% (2005-2009) (2005- 6,290 6,000 6000 6,449 4,505 6,091 4,979 Quantity('000 MT) 4000 3,024 4,325 2,686 1,506 2000 1,348 1,660 854 1,043 1,296 440 1,094 750 0 233 2005 2006 2007 2008 2009 Till Sept SS production Import of Chrome Ore & Conc Production of Ferro Chrome Import of Ferro Chrome Total production capacity 13 million MT; one-third of global capacity one- Flats : 7 million MT - State Owned Joint enterprises Longs : 6 million MT – mostly private enterprises 2009: 2009: SS production expected 8 mill MT, capacity utilisation of 62%. Significant exports. China now the world’s largest SS Player.
  13. 13. China in The Global Chrome Market (2) – India Factor China’s dependence on India in Chrome Ore or Chrome Alloys India’s spend share as supplier of Chrome Ore & Conc to China 2005 : 32%, 2007 : 16%, 2009 : 7% India’s spend share as supplier of Ferro Chrome to China- China- 2005 : 28%, 2007 : 14%, 2009 : 17% Share of India’s Ferro Chrome export to China as part of India’s total production increased to a level of 60% China prefers Indian Ferro Chrome : - High grade - Short Sailing Time - No Seasonal Effect -Time zone advantage Domestic FerroChrome Demand 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) (2000-
  14. 14. Other issues in India 1. Secure suppliers / customers : LT Contracts with fixed monthly committed lifting quantity 2. Price : need to evolve an acceptable BM. Monthly/quarterly BM based pricing on LT Contracts. 3. Improvement in Logistics : specially inland transport in Orissa and from the Eastern to the western part of India. 4. Power availability and need to keep power costs low
  15. 15. ¿ Quo Vadis ?
  16. 16. Ferro Chrome : India catching up with China 1,600 1,576 1,600 1,500 1,476 1,450 1,450 1,500 1,406 1,350 1,400 1,300 '000 MT 1,156 1,200 1,100 1,041 1,000 900 800 2009 2010 2011 2012 2013 China India 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.
  17. 17. Projected Stainless Steel Growth China India 12,000 10,690 11,070 9,760 Year Flat Long Total 9,100 9,000 8,400 2005 1001 153 1154 '000 MT 6,000 2010 1685 373 2058 3,000 2015 3185 900 4085 0 2010 2011 2012 2013 2014 Source ISSDA Stainless Steel : •China SS growth to slow to 6-8% CAGR between 2010 - 2015 6- •Significant opportunity for India to emulate growth of China during 2005- 2005- 2009 (@22). •However, most optimistic projections for Stainless Steel by ISSDA @12% CAGR
  18. 18. Till 2000 2001 to 2004 2005 to current The possible future Stainless Steel China reaching half Emergence of China as Dominance of China in Increased Dominance of million MT production player of significance global Stainless Steel China, Emergence of India in global Stainless Steel production : high growth in Stainless Steel production Increased production of Ferro Chrome No Ferro Chrome import by China starts importing Ferro Chrome in China and Higher production China Ferro Chrome : 1st time India. consumption & export of import rom India Quantum jump in India’s Ferro Chrome in India. share in China’s import China secures Chrome Ore Chrome Ore supplies through equity India’s production reaches India’s production reached Restriction of Ore supply stakes in Zimbabwe, South 2 million MT 3 million MT with one third from India . China shifted to exported to China supply from other countries Africa etc. Further consolidation : Cr Ore - FeCr - Stainless Steel
  19. 19. • Rapid increase in Ferro chrome demand in China and India will boost Ferro Chrome production in India in a big way. • 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.
  20. 20. THANK YOU
  21. 21. USES OF CHROMIUM
  22. 22. Chromium : Use In Metallurgical Applications CHROMIUM - Alloying Element In Steel Passive layer formation Carbide formation 70% of chrome used in Cr > 10.5% Wear Resistance Stainless Steels Bearing Steels metallurgical applications - is for making stainless Cr steel Carbide formation Scale Resistance 18% is for making alloy Hot Hardeness Creep Resistance Tool Steels, High Speed Steels High Temp Steels steel Growth 000 MT Cr 000 MT Cr Application % Cr Foundry & Nickel Alloys Rate Content 2008 Content 2014 Castings Stainless Steel 5% 18% 2,798 50% 3,571 50% 1% Others Alloy Steel 5.50% 3% 1,244 22% 1,626 29% 10% 2% Tool & HSS 6.90% 5% 94 2% 131 2% Engg Steel 6.20% 0.80% 369 7% 498 9% HSLA 10% 0.20% 37 1% 60 1% Alloy Steel Carbon, Low Alloy 4.80% 0.10% 744 13% 941 17% 18% Castings 4.40% 0.20% 153 3% 190 3% Ni alloys 6% 22% 55 1% 74 1% Others 6% 1% 70 1% 94 2% Stainless Steel 69%
  23. 23. BACK UP ABOUT TATA STEEL
  24. 24. THE TATA GROUP The Tata Group Founded by Jamsetji Nusserwanji Tata in 1869, a visionary, nationalist and philanthropist who believed that wealth must be shared HISTORY OF FIRSTS : First integrated steel plant First hotel chain First hydro electric power plant First institute of technical education First to discover & nurture Chrome & Manganese
  25. 25. The TATA GROUP Strong Brand Equity USD 62.5 billion 6.3% of India GDP 61% of Group Revenue Employees 350,000 people worldwide
  26. 26. Group Profile US$25 Bn. TEA MOTORS STEEL CHEMICALS SOFTWARE US$3450M ENERGY FERRO ALLOYS & SERVICES MINERALS TELECOM US$400M
  27. 27. TATA STEEL Tata Steel is the flagship company of the Tata Group First to discover and nurture India’s mineral wealth : first Manganese and chrome mines, first Ferro alloy plant. Amongst the largest Ferro alloy producers in India – amongst World’s top 6 Chrome producers.
  28. 28. Ferro Alloys & Minerals Division
  29. 29. FAMD - PRODUCTS CHROME ALLOYS MANGANESE CHROME CONCENTATE DOLOMITE / PYROXINITE ALLOYS FerroChrome Ferro Manganese ChargeChrome Silico Manganese FERRO ALLOYS MINERALS FLUXES Amongst the top 6 Global Chrome Alloy producers 6.3% global market share in Chrome Alloys, 44% share in India Largest supplier of manganese alloys in India, 15% market share in India Production facilities in India and South Africa Major Customers are Carbon Steel, Alloy Steel & Stainless Steel Manufacturers
  30. 30. FAMD - PRODUCTS As the world sees us…. Chrome Alloys – Stainless / Alloy Steel Manganese Alloys – Carbon & Stainless Steel (200S) Fluxes – Manufacture of Steel Chrome Concentrate – manufacture of Chrome alloys and Stainless Steel
  31. 31. World’s Largest Chrome Alloy Producers Rank by Rank by Company Capacity Prodn Prodn Name ( In LMT) (2008) (2010) 2007 2009 Xstrata 18.00 21.50 1 1 Samancor 11.85 11.35 2 2 Kazchrome 10.0 11.3 3 3 Hernic 2.7 4.3 4 4 Outokumpu 2.6 2.6 5 6 Tata Steel 2.2 3.6 6 5 Group Tata Steel will be the fifth largest producer of Charge/Ferro Chrome and the largest producer in India
  32. 32. Leader In Manganese Alloys in India 17% Domestic Market Share in Ferro Manganese 12% Domestic Market Share in Silico Manganese
  33. 33. Flux Business : Dolomite • Calcium-Magnesium carbonate Calcium- • Used as a flux in making of iron & during steel making and for some refractory applications. Flux is used as a slag former, which helps in refining the ore while it is reduced to metal. Competitive Position Customer Current Market Product Present Volume Competitors Envisaged Growth Segments Share, Position Integrated Steel BISRA (Mkt share 50%, Plants Rank 1) 7.5 lakh MTPA Dolomite 5 lakh MTPA 30%, 3 Ferro Alloy Plants BK Lal (Mkt share 40%, (2015) Sponge Iron Plants Rank 2)
  34. 34. Pyroxenite Pyroxenite : • Calcium-Magnesium silicate associated with serpentine, found with Chromites at Sukinda. Calcium- Sukinda. • Used as a flux in making of iron & during steel making at Tata Steel, Jamshedpur, substituting Dolomite. • Replacement of Dolomite by Pyroxenite (considered a gangue material) has resulted in substantial saving in cost of steel. • Not marketed outside Tata Steel due to restricted availability. Pyroxenite reserves expected to last 1 – 2 years. • Fully utilized at Tata Steel’s Jamshedpur works
  35. 35. CHROME ALLOYS MANGANESE ALLOYS CHROME CONCENTATE DOLOMITE / PYROXINITE FeCr and ChCr ChCr FeMn and SiMn FERRO ALLOYS MINERALS FLUXES FERRO ALLOYS & MINERALS DIVISION Other Divisions: Long Flat FAMD Tubes Products & Agrico & Bearings Engineering Hand Tools Automation Products Wires
  36. 36. GLOBAL REACH FACILITIES CHROM E CUSTOMERS MANGANESE CUSTOMERS FLUX CUSTOMERS
  37. 37. Some Major Customers…… Excellence Recognises Excellence
  38. 38. Limestone Biz Sila Eastern Company Ltd. Thailand: A 49% joint venture to undertake development of limestone mines in Thailand nurtured at FAMD. Company vision: to be the preferred global source for low silica limestone for metallurgical application Guaranteed typical specs CaO 54 % 55.0 % MgO 1.5 % max 0.5 % SiO2 0.5 % max 0.3 % Al2O3 0.3 % max Fe 2 O3 0.2 % max The company has grown to be a 1 Million MT limestone producer in 4 years.
  39. 39. Facilities & Plants Mines Location Product Production Chromite Mines Sukinda, Orissa Chrome Ore 1 Million MTPA Manganese Mines Joda, Orissa Manganese Ore 0.33 Million MTPA Dolomite Mines Gomardih, Orissa Dolomite 0.5 Million MTPA Ferro Alloy Plants Facility Current Product Production 33.5 MVA closed FAP Bamnipal, Orissa Ferro Chrome 55,000 MTPA furnace 9MVA & 15MVA FAP Joda, Orissa Manganese Alloys 50,000 MTPA semi-closed fce FAP, Cuttack Orissa 2 * 16.5 MVA fce Ferro Chrome 50,000 MTPA TSKZN, Richards Bay, 2 * 38 MVA fce Charge Chrome 150,000 MTPA South Africa Additional production of ferro alloys through Long Term Conversion Arrangements of ~2 lakh MTPA
  40. 40. Business Profile Production facilities in India and South Africa Products : Minerals : Chrome Concentrate Alloys : Charge Chrome Only supplier of both FeCr & Ch Cr in World High Carbon Ferro Chrome High Carbon Silico Manganese High Carbon Ferro Manganese Fluxes : Dolomite and Pyroxinite Global reach - strong presence in Japan, Korea, China and recent foray into U & Middle East market and re-entry into Europe. Leadership position in India Major Customers are Carbon Steel, Alloy Steel & Stainless Steel Manufacturers Traditionally nurtures LT relationships & long term business agreements.
  41. 41. Facilities FERRO ALLOY FACILITIES Facility & Location Current Production Furnace Fce Type Capacity 1 FAP Bamnipal, Orissa, India HC Ferro Chrome, Low Phos 1 x 33.5 MVA Closed 60,000 MTPA 2 FAP Joda, Orissa, India HC Ferro Manganese, Low Si 9 MVA , 15 MVA Semi-closed 50,000 MTPA 3 FAP(Rawmet) Cuttack, Orissa, India Chrome and manganese alloys 2 x 16.5 MVA Semi-closed 50,000 MTPA 4 TSKZN, Richards Bay, South Africa Charge Chrome 2 x 38 MVA Semi-closed 151,000 MTPA In addition facilities to convert approx 200,000 MTPA bulk ferro alloys under tolling
  42. 42. Products – Manganese Alloys Special Products Low Silica Ferro Manganese with Si content below 1.5% and below 1% can be made. Low Phos Ferro Manganese with Phos levels below 0.25% and 0.20% can be made Support Facilities Customised size and specifications and Delivery conditions 24x7 customer contact Packaging: In 50 kg Jute-HDPE/ 1 MT Bags and loose in bulk Jute- Provision of sales ex – Depots / Warehouses near you or ex-plant ex- Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) & sea rail- Provision of certification by independent Public Analyst
  43. 43. Products – Chrome Alloys Only Global Producer of both HC Ferro Chrome and Charge Chrome Special Products Low Phosphorus HC Ferro Chrome with Phos content ranging from 0.018%max upwards Low Manganese Ferro Chrome with Mn levels below 0.35% Low Titanium Ferro Chrome, with Ti levels below 0.20% for seamless tubes Support Facilities Customised size and specifications and Delivery conditions 24x7 customer contact Packaging: In 50 kg Jute-HDPE/ 1 MT Bags and loose in bulk Jute- Provision of sales ex – Depots / Warehouses near you or ex-plant ex- Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) and sea rail- Provision of certification by independent Public Analyst
  44. 44. Products – Chrome Concentrate Special Products Coarse Concentrate High Cr/Fe Concentrate with Cr/Fe upto 2.8 Support Facilities Multi Mode/ Multi Port despatches : land (road/truck, rail-wagon/Concor rake) & sea(bulk & rail- containerized through a choice of nearby ports) 24x7 customer contact Packaging: In bulk or 1 MT Bags Customised size and specifications and Delivery conditions Provision of certification by independent Public Analyst
  45. 45. Products – Fluxes Support Facilities Customised size and specifications and Delivery conditions 24x7 customer contact Multi Mode despatches : land (road/truck, and rail- rake loading option) rail- Packaging: In bulk. Rake loading option
  46. 46. Our Business Excellence Journey Accolades Year on Year TBEM DEMMING CAPXEIL SPECIAL EXPORT PROMOTION AWARD 2009
  47. 47. THANK YOU for more information : please visit us at – www.tatasteel.com/famd email - tatafamd@tatasteel.com
  48. 48. INDINOX 2010

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