DEMAND FOR HIGH END PRODUCTS

Transcription

1 Iranian Iron & Steel Conference MetalBulletin Kish Island, Iran IRANIAN ALLOY AND SPECIAL STEEL DEMAND FOR HIGH END PRODUCTS Ramin Keihan Deputy of Managing Director & CEO of IASCO 1

2 Content 1. What role is alloy and special steel playing in the Iranian steel market? 2. What is driving demand for alloy steel in Iran? 3. How could the Iranian alloy industry interact with the global market? 2

3 Steel in the world The steel industry is the second biggest industry in the world after oil and gas with an estimated global turnover of 900 billion USD. Employing more than 2 million people around the world. The housing and construction sector is the largest consumer of steel today, using around 50% of steel produced Crude Steel Production(MT) World China The world per capita ASU is around 224 kg in Source: World Steel Association

4 Top in steel industry 4 Source: World Steel Association

5 Smaller sector of steel industry showing the most demand growth 5

6 Alloy steel Alloy steel production may account for only around 9 to 10 percent (on a finished product basis) of total global steel production. In terms of value, Alloy steel production accounts for around 20 percent of the total market. 1.5% 0.3% 70.4% 27.8% Alloy Tool Steel Nickel Alloys Stainless Steel Other Alloy Steel 6 Source: SMR Institute

7 Tool steel With production of around 2,2 million tons in The tool-steel market is driven, in order or magnitude, by the following end-uses: transport (automobile production), industrial uses (pipe and tube production), consumer goods (with increasing use of plastics) and construction. While the top 15 companies account for 70 percent of production, of the top five companies, the two largest (voestalpine and Schmolz+Bickenbach) are German, and the other three are Chinese: Dongbei Special Steel, Tiangong Group and Qilu Special Steel. 7

8 Nickel alloy steel Approximately 450,000 tons of nickel alloy steel was produced in The main end-user markets for the steel were aerospace, process industries and the oil/gas industry. Five companies (Special Metals, Outokumpu VDM, Allegheny Technologies, Imphy Alloys and Carpenter Technology) dominate the industry. 8

9 Stainless steel By far the largest alloy steel sector is the stainless steel sector, of which 41.7 million tons were produced in The three main consumers of stainless steel are the consumer goods, catering and food sectors, the chemical, petrochemical and energy sectors, and the construction and infrastructure sectors. Of the top 20 stainless steel companies, some 14 are Asian. The fivelargest producers in 2014 were: POSCO Group, Shanxi TISCO, Outokumpu Stainless Group, YUSCO Group and Baosteel Group 9

10 Alloy steel trade- Import (With stainless) Major of importer: Germany, USA, China, Italy & Korea. 10 Source: Trademap.org

11 International prices Material & energy(usd/t) Iron ore Oil Scrap Source: MetalBulletin & BGH

12 1. What role is alloy and special steel playing in the Iranian steel market? 2. What is driving demand for alloy steel in Iran? 12

13 Crude Alloy Steel Production in IRAN : ~ 400,000 T Ratio of Alloy Steel to Crude Steel in IRAN : ~2.5% 13

14 Alloy steel production in Iran (Finished Product) Company Iran Alloy Steel CO Esfarayen Industrial Complex Isfahan Alloy Steel Complex Other producer Process Melting & Rolling Melting & Forging Melting & Forging Capacity (Ton) 500,000 80,000 30,000 50,000 All of this mentioned companies produce Long products 14

15 Iran steel industry advantages Energy Transport infrastructure Growing industries Young & educated workforce Government policy 15

16 Export of alloy steel- Iran 16 Source: Trademap.org

17 Import of alloy steel-iran 17 Source: Trademap.org

18 Alloy steel indirect trade-iran HS code Articles of iron & steel Tools, implements, cutlery, etc of base metal Machinery, boilers, etc Railway, tramway locomotives, equipment Vehicles other than railway Value imported (USD million) Source: Trademap.org

19 Consumer of alloy steel in Iran (Estimate) 19

20 Apparent alloy steel use ASU(Apparent Steel Use) = Production Export + Import World per capita apparent alloy steel use in 2014: ~ 22 Kg Iran per capita apparent alloy steel use in 2014: ~15 Kg World population: 7 billion Iran population: 75 million 20

21 How could the Iranian alloy industry interact with the global market? 21

22 IASCO Introduction Iran Alloy Steel Co. is well known as the alloy & special steels producer in iran and Middle East and one of the most advanced alloy steel producers in the world, which has been commissioned in Steel Making Plant, Heavy Section Mill, Light Section Mill, Heat Treatment and Finishing Plants of this company have been equipped with the modern facilities and updated know how technology, which guarantees to obtain the best quality for production of different alloy and special steel grades, according to international standards. 22

23 IASCO Product Steel group Grade Steel group Grade Bearing Steel , Hot Work Tool Steel , , Case Hardening Steel , SCR420H, Micro Alloy Steel 30MSV6, 38MnVS5, Cold Work Tool Steel , , Nitriding Steel , , Free Cutting Steel , , Plastic Mould Steel , Heat Treatable Steel , , Spring Steel , , High Temperature Steel , , Stainless & Heat Resistant Steel , , , 23

24 IASCO Product Shape Round Square Round Corner Square Flatbar Ingot Billet Bloom Coil Special Shapes mm mm mm Size Thickness 5-60mm & Width mm 1Ton (S1:390mm2, S2:270mm2, H:1150mm) 2Ton (S1:450mm2, S2:360mm2, H:1620mm) 3.3Ton (S1:560mm2, S2:250mm2, H:1840mm) 120*120mm, 130*130mm, 150*150mm, 180*180mm 230*250mm 12-32mm Order Based 24

25 IASCO Consumer Automotive Industries Machinery Oil, Gas & Petrochemical Industries Construction Others 25

26 IASCO Export Around 10% IASCO Alloy Products are Exported to Other Countries Such as: 26

27 IASCO Certificates Quality Management Certificate (ISO 9001:2000). Environnemental Management Certificat (ISO 14001:2004). Occupational Health and Safety Management Certificate (OHSAS 18001:2007). Integrated Management System Certificate (IMS). Green Industry Exemplary Unit Qualified Laboratory Certificate by Institute of standards and Industrial Research of Iran International Award of Technology and Quality from the 24th Geneva International Competitions Switzerland, TQCS (Top Quality Customer Satisfaction Standards) Award from International OTHER WAYS Competitions Paris. Diamond Award of Excellence and Quality at the 10th International Competitions France, Award and Certificate from The 37th Higher Quality Congress In Madrid Spain,

28 IASCO Advantages Actually advantages Competitively price Modern production equipment Bohler technical knowledge Good experience of export to EUROPE Well-Known brand in produce alloy steel IASCO increase export production with provide shorter delivery time, Possibility of opening LC, Insurance, etc. after eliminate sanctions. 28

29 Thanks for your attention 29