trends shaping the global steel industry · 5/6/2018 · 2001 2004 2007 2010 2013 2016 steel...
TRANSCRIPT
Trends Shaping the Steel Industry
Jamshedpur Works, Jul 201605.06.2018
Trends Shaping the Steel Industry
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Megatrends shaping the future...
Major shifts in the past...
Trends Shaping the Steel Industry
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Major shifts in the past...
Megatrends shaping the future...
< 5%
35%
55%
1990 2005 2016
60% of steel making capacity owned by governments in 1980s, currently 30 – 40 %
1950 1980 - 1990 2000
Japan Europe South Korea
POSCOChina - share of private
producers
Fewer distortions, faster supply correction in down cycles
I nc reas ing Pr iva t i sa t ion
Transition from government owned to private ownership
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Steel demand in China rose from 138 Mnt in 2000 to 737 Mnt in 2017
5
0
200
400
600
800
2001 2004 2007 2010 2013 2016
Steel demand in China and Steel Prices
China - Steel Consumption (Mnt)
Steel Prices (USD/t)129
568832720
761
859
0
400
800
1200
1600
2000
2000 2008 2017
China: Share of global steel production
15%
43%
49%
Supply side policy intervention and domestic demand in China - major
factors influencing steel and raw material prices
Mnt
Rapid rise of Chinese steel industry
RoW
China
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Next set of 50+ mtpa steel companies emerging in China
1970 - 1980 1990 2000 2010
Baoshan I&S Corp.
ShanghaiMetallurgical Xinjiang Ba Yi
I&S
Wuhan Corp.
Guangdon Shouguan I&S
Nippon Steel[Yawata + Fuji]
Sumitomo
ArcelorUsinor
AceraliaArbed
MittalSteel
SibalsaSidbecKarmet
Inland ISG
+ Several others
Formation of Usinor, Aceralia and Arbed
through consolidation
Consolidation and the emergence of Global majors
Trends Shaping the Steel Industry
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Megatrends shaping the future...
Major shifts in the past...
• Indian steel demand to grow the fastest at 5% - 6% p.a. (2018 - 2025)
• Urbanization to drive steel demand in Construction & Infrastructure and the
automotive sector
• Growing rural demand for steel – currently an under-addressed opportunity
Emerging economies to
lead global growth
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Faster urbanization in
emerging economies
Young India in an aging
world
Implications for Indian steel industry
Economic Demographic
Megatrends shaping the future..
Increasing influence of
communities – amid rising
disparities
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Digitalization: IOT,
Robotics etc. rapidly
becoming accessible
Climate change influencing
policy, choice of technology
and material
• Licence to operate to become increasingly difficult
• Reduce carbon footprint, increase waste use and recycling.
• Leverage digital technologies across steel value chain.
Implications for the Global steel industry
Socio-Political Environment Technology
Megatrends shaping the future..
Thank You
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