Commodities Management

Topic of
Presentation :
Steel

Submitted By :
Ankitha Singvi
Arvind Bagga
Gaurav Lakhvani
Namisha
Chaudhry
Sakshi Chopra
Shraddha Rana
1
Agenda
1.Extraction of Iron and Steel
2.Different Forms of Iron & Steel
3.Top 10 Steel producing countries
4.World Steel production scenario
5.World Trade of Steel
6.Global Steel demand and supply
7.India’s Position in world trade of Iron and Steel Growth
Pattern
8.Major Players in the Industry (PSU and Non PSUs)\
9.Consumption Pattern
10.Steel Demand Drivers
11.Government Policies
12.Price Trends and Influencing Factors
13.Competition from Substitutes

2
 Extraction of Iron and Steel
Two Most Common Forms of
Iron Ores
Haematite (Fe2o3)
Magnetite (Fe3o4)

Process of Blast Furnace:

3
ifferent Forms of Iron & Steel

Cast Iron Puddle Low Carbon Steel

Iron
Ducti Mild Steel
le
Iron 4
rocessed Form – Product Segment

Billet Hot Corrosio Tool

s Rolled n Steel
Bars & Cold Resistan Heat
Rods
Structur Rolled t Steel Resist
e ant
Rails and Steel
Wires 5
p 10 Steel Producing Countries
Rank Country 2009 2008 %Change(2009/200
1 China 567.8 500.3 8)
13.5
2 Japan 87.5 118.7 -26.3
3 Russia 59.9 68.5 -12.5
4 US 58.1 91.4 -36.4
5 India 56.6 55.1 2.7
6 South Korea 48.6 53.6 -9.4
7 Germany 32.7 45.8 -28.7
8 Ukraine 29.8 37.3 -20.2
9 Brazil 26.5 33.7 -21.4
10 Turkey 25.3 26.8 -5.6
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Crude Steel Production
Worldwide

7
Comparison of world steel
production in 2008 and 2009

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Steel Mill Products
Exporters 

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Major Steel
Importers

10
11
Iron Ore Trade

12
  
•   
Trade of Scrap
•

•
Steel Supply and Demand

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Major Steel Producing Companies

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 Trading Centers for Steel
• London Metal Exchange
•

Ø The LME provide a single reference price for

steel billet, enabling improved risk
management for the global steel industry.
•

Ø 10 million tonnes of steel have been traded at

the London Metal Exchange (LME) year-to-
date in 2010 (equivalent to 153,977 lots),
the first time this milestone has been
reached in a single calendar year.
 16
a’s Position in world trade of Iron and St

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 Country’s Steel Scenario
India emerged as
net Importer of
Steel in 2008 - 09 ,
India fifth Largest Net consumption
producer of crude - 40 . 997 Mn ( Inc . of
steel ( 2008 ) with 7 . 8 %)
capacity of 54 . 5
billion

222 MoUs have been signed by

various States with capacity 275 . 5
Mn tonnes and Inv . of US $ 229 18
Billion
 Indian Steel in Global Context

Production has been Sustained despite Global Economic Meltdown

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Growth Pattern

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Steel Demand in India

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Major players (PSU)

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Major Players (Private Sector)

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 Consumption Pattern of Steel
C o n su m p tio n p a tte rn o f lo n g / fla t p ro d u cts a n d p e r
ca p ita ste e lco n su m p tio n a re g o o d in d ica to rs o f a
n a tio n ’ s d e ve lo p m e n t.

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Steel Demand Drivers
Strong Economic Growth:

Urbanization : Housing, urban

infrastructure such as over-
bridges, mass transport systems.

Massive government efforts to

create transport and industrial
infrastructure : the Government
is expected to invest $514
billion on infrastructure by
2012.

Private Sector Investment is

growing at above 15% annually.

Foreign Investment of nearly 40

billion dollar committed in
steel sector.

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Government Policies
N a tio n a lS te e l Po licy 2 0 0 5
T h e 2 0 0 5 N a tio n a l S te e l Po licy
( Government of India 2005 ) sets out
th e In d ia n G o ve rn m e n t’ s visio n fo r
th e fu tu re o f th e ste e l in d u stry.

T h e ce n tra l g o a l o f cre a tio n is “ An

industry with 110 million tonnes
of capacity and 100 million
tonnes of production by 2019 - 20
— implying an average growth in
production of nearly 7 per cent
a year .”

The Indian Ministry of Steel estimates

that achieving this goal will require
an extra US$65 billion in capital
expenditure in addition to funds for
technology upgrades at existing
facilities.
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National Policy Facilitates to
T h e p o licy fo cu se s o n th e
d o m e stic se cto r b u t a lso
e n visa g e s a ste e l in d u stry
g ro w in g fa ste r th a n d o m e stic
co n su m p tio n , w h ich w ill e n a b le
exp o rt o p p o rtu n itie s to b e
Institutional
re a lise d and Policy Settings
I. A llo w in g Priva te O w n e rsh ip
a n d Fo re ig n In ve stm e n t
II.
III. Im p ro vin g In te lle ctu a l
Pro p e rty La w s
IV.
V .D e re g u la tio n o f Pricin g a n d
D istrib u tio n o f Iro n a n d
S te e l
VI.
V II. C u sto m s Po licy
VIII.
IX . S p e cia l E co n o m ic Z o n e s
X.
XI. S p e cia l In ve stm e n t 27
Price Trends & Influencing Factors

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Competition From Substitutes

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