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Global Steel Industry Indian Steel Markets 2011 (New Delhi) 15 th March, 2011 Jayant Acharya (Director – Commercial & Marketing) JSW Steel Limited India. Economic Movement. 2008. 2009. 2010. 2011-P. $57.8 -Trillion. $62 -Trillion. $65.4 -Trillion. China. $61.2 -Trillion. India. EME’s.
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Global Steel IndustryIndian Steel Markets 2011(New Delhi)15th March, 2011JayantAcharya(Director – Commercial & Marketing)JSW Steel LimitedIndia
Economic Movement 2008 2009 2010 2011-P $57.8-Trillion $62-Trillion $65.4-Trillion China $61.2-Trillion India EME’s %-GDP-Growth World AME’s Post 2008 EME’s contributed 127% to Global Economic Growth
Economic Dynamics X-Axis : C.Y. 1980~2015-F … Y-Axis : GDP-PPP-Increment ($-’000-Bn) 1980-90 1991-00 2000-09 2009-15-F +$14 Trillion +$17 Trillion +$28 Trillion 38% 62% 41% 59% 61% 39% EME’s AME’s +8% +4% Bubble-Size : GDP-PPP-Increment ($-’000-Bn) Investment Stimulating Economic Growth of EME’s
Demographic Profile AME’s World EME’s 18% 6,880-Mn 82% Ref. : Census.Gov. / / United Nations Ref. : Census.Gov / United Nations 0.3% Population-Growth-Rate 1.2% 1.4% 40-Yrs Median-Age 29-Yrs 27-Yrs 68% Earning-Age Population 65% 65% November 2010 75% %-Urbanization 50% 45%
Steel Demand Dynamics X-Axis : Ref. Year … Y-Axis : Steel Demand (MnT) China Activates Post-War : Reconstruction-Phase AME’s Stagnation +398-MnT +195-MnT +633-MnT Bubble-Size : Steel Demand (MnT) +7% +1% +5% EME’s leading the Global Steel Demand
Steel v/s Oil Pricing Dynamics : 2010 ~ 2000 Steel Oil Investment Consumption Steel and Oil : Major arms of Economic Expenditures
Steel Trade Balance S. America EU-27 Turkey CIS China Australia Japan +46 +11 +38 (14) (26) +24 (4) (26) (10) +6 +1 NAFTA Africa M.E. India S.E. Asia Economic Resurgence to reinstate steel balance
Rising Raw Material Prices Price-Index : $/mt (Base : C.Y. 2000 = 100) Increment : 2010 ~ 2000 Iron Ore Iron-Ore Coking-Coal Scrap Steel-HRC Coking Coal 6.6 Times 4.7 Times 3.7 Times 2.1 Times Scrap Steel Volatility of Input Raw Materials
Challenges Economy Environment Weather C H A L L E N G E S Raw Material Capacity Consolidation