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Iron & Steel Industry Of Pakistan
Steel is one of the most widely used metals globally and is produced in over 50 countries. China is the largest producer at 31% of the world's supply. The steel industry in Pakistan has grown at an average rate of 5% annually and employs over 92,000 people directly. However, the industry faces challenges of outdated plants, low per capita consumption, and lack of training/research programs. Increased investment, utilization of iron ore reserves, and improved policies are needed to further develop Pakistan's steel sector.
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Iron & Steel Industry Of Pakistan
- 3. • Recognized asmost critical for development • Most commonly used metals in the world • Steel, the most recycled material in the world today
- 4. • Produced inmore than 50 countries • Rapid industrialization created a huge demand for Steel • Major Steel producing countries • China 31% • Japan 10% • USA 8% • Russia 6% • South Korea 4% Source: CBR
- 5. • Production range2 million tons to 3 million tons per year in last 9 years • Demand has increased at rapid rate recently Source: CBR
- 6. 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2004 2005 20062007 2008 2009 2010 2011 2012 2013 2014 2015 Domestic Production Imports Total Consumption Avg. Growth Rate: 5% Source: Engineering Pakistan In 000 Tones
- 7. 0% 1% 2% 3% 4% 5% 6% FY 1997-98 FY2005-06 Source: CBR
- 8.
- 9. • Two Sectors •Organized Sector • Unorganized Sector
- 10. • Major Players •Pakistan Steel (PS) • Pakistan Steel Mill (PSM) • Steel Pipe Mills Source: Engineering Pakistan
- 11. • Scrap Melters80 Units • Re-Rolling Mills 334 • Punjab 291 • Sindh 37 • NWFP 4 • Baluchistan 2 • Ship Breakers 350 • Foundries 450 Source: Engineering Pakistan
- 12. • Ship Breaking •Steel Melters • Steel Rollers • Steel Pipe Industry
- 13. • Provides shipplates for re-rolling industry • Based in Gadani, Balochistan • Annual production ranges between 50,000 – 100,000 metric tons • The number of employees working are up to 4000
- 14. • Produce andsell ingots and cast billets • Produced by melting Steel scrap in Electric Furnaces • Currently about 120 Steel furnaces are operating • 15000 labor force is employed • Production 3 million metric tons in 2005-06
- 15. • These unitsroll billets/ingots • Raw Materials: Steel billets, ingots, cast billets and ship plates • Products: Steel bars, flat, tee Iron, channels, girders and wires etc • Installed Capacity is around 4 million tons • 20,000 labor force is employed
- 16. • Non-existent atthe time of independence • Currently its installed capacity is 525,000 tons per year • Able to produce seamless, seam welded, spiral welded and arc-welded pipes • Approximately 3500 people are employed
- 17. 0 50,000 100,000 150,000 200,000 250,000 300,000 Jun-00 Investments added upto 2004 Projected Inv. (2005-2010) Total Projected Inv. by 2010 PKRMillions Source: Engineering Pakistan
- 18. 0 50 100 150 200 250 300 350 USA Malaysia Saudi Arabia UKIran China Thailand Philippines India Pakistan Indonesia 27
- 19. 0 5 10 15 20 25 30 35 40 1994 1995 19961997 1998 1999 2000 2001 2002 2003 2004 2005 2006 SteelConsumption percapita(kg) Source: Engineering Pakistan
- 20. • Pachinkoh (Nokundi) •Damar Nisar (Chitral) • Chilghazi (Dalbandin) • Chigendik (Nokundi) • Dilband (Mastung, Kalat) • Chichali-Chughlan (Kalabagh, Mianwali) • Makerwal-Sho (Makerwal Mianwali) • D.G.Khan • Pezu (D.I.Khan-Bannu) Source: S. H. Faruqi
- 21. • Manufacturing Sector •Construction Sector • Employment Generation • Taxes
- 22. • Share ofmanufacturing in GDP is 18.2% • Iron & Steel Industry is contributing 3.3% • Manufacturing sector grew at 12.6% in 2004-05 • Due to law & order situations recently the production is badly effected
- 23. • The constructionsector growth was 9.2% during 2005-06 • Enhanced activities in private housing • Spending on physical infrastructure • Construction in the earthquake affected areas
- 24. • More than92,000 people are employed directly • 14000 jobs have been provided by the Pakistan Steel Mill alone
- 25. Categories Units Manufacturers 599 Importers451 Exporters 24 Distributors 315 Wholesalers 820 Retailers 51 Total 2260
- 26. Categories Taxes (PKR Millions) Manufacturers1885.2 Importers 34.5 Exporters 0.9 Wholesalers/Distribut ors 49.5 Retailers 6.2 Total 1976.3
- 27. • Two typesof plants are used to convert Iron into Steel • Electric Arc Furnace (EAF) method • Basic Oxygen Furnaces (BOF) • Production is 34% and 66% respectively from both types of plants
- 28. • The fivemajor classes of steel are • Carbon Steels • Alloy Steels • High-Strength low-Alloy (HSLA) Steels • Stainless Steels • Tool Steels
- 29. • More than90% of all steels are carbon steels • Contain varying amounts of carbon • Used in Machines, automobile bodies etc.
- 30. • Containing certainlarger amounts of Manganese Silicone and Copper • More strengthen then carbon steels
- 31. • Have muchmore strength than carbon & Alloy Steel of same weight • Buildings are now being constructed with frameworks of HSLA steels
- 32. • Contains Chromium,Nickel and other alloying elements • Used in pipes, chemical plants, trucks etc.
- 33. • Contain Tungsten,Molybdenum and other alloying elements • They have extra strength, hardness, and resistance to wear
- 34. • 15% GSTis levied both at domestic and import stages • Steel bars are subjected to fixed tax rate @ Rs.1000/ per metric ton • Ship plate of ½ inch thickness and above 40% • Ship plate of 3/8 inch thickness and above but below ½ inch 20% • Re-roll able scrap & Small irregular pieces and re-melt able scrap 15%
- 35. • Direct Products: •By-products
- 36. • Billets • HotRolled Products • Cold Rolled Products • Galvanized Products • Chequered Plates & Formed Sections • Pig Iron • Coke
- 37. • Produced totight tolerances, high surface finish and superior quality • In the shape of steel bars or rods • Used for • Plain and twisted bars • Rails • Wire rods • Machine components • Seamless pipes etc.
- 38. • Produced atHot Rolling Strip Mill • Used for • Pipes • Tanks • Floating Structures • Wheel Rims etc
- 39. • Flat SteelProducts • Used In • Automobiles • Roofing • Shuttering • Paneling etc
- 40. • Used forindustrial flooring
- 41. • Liquid Iron •Mainly used to produce steel • Two types are… • Foundry Grade Pig Iron • Conversion Grade Pig Iron
- 42. • Produced atthe Coke Oven and By-products Plant • Cellular, infusible and heterogeneous in both physical and chemical properties • Used in manufacturing Pig Iron, sugar mills, pharmaceutical industries etc.
- 43. • Oxygen &Nitrogen • Refractory Bricks • Coal Tar • Granulated Blast Furnace Slag • Boulder Slag • Ammonium Sulphate
- 45. • High Demand •From Government Side • From Automobile Side • From Private Sector • From Housing Sector • Demand Growth • Iron Ores • Coal Availability • By-products
- 46. • Out DatedPlants • Number Of Operational Manufacture/ Process Units Decreased • Only One World Standard Facility Of Steel Production • Low Per Capita Consumption • No Training And Research Plans
- 47. • Utilization OfOres • Investments • Export Of Steel • Usage Of Iron and Steel In Rural Areas • Investments In Training And Development
- 48. • Privatization OfSteel Mill • Policies Of Government • Law And Order Situation • Tax System
- 49. • The importancecan’t be neglected • Contributing in the development • Providing more then 92000 employments • There must be new investments • Ores must be utilized