INDINOX STAINLESS STEEL CONFERENCE Nickel An essential commodity for India
INDINOX STAINLESS STEEL CONFERENCE ACKNOWLEDGEMENT
NICKEL- AN ESSENTIAL COMMODITY FOR INDIA ABOUT NI-MET METALS VARIOUS FORMS OF NICKEL AS A RAW MATERIAL CHANGING FACE OF NICKEL SALES INDIA S IMPORT OF NI BEARING STAINLESS RAW MATERIALS UNDER- STANDING INDIA S IMPORT DUTY STRUCTURE INDIA S PRIMARY NICKEL PRODUCTION INDIA S STAINLESS PRODUCTION CONCLUSION
NI-MET METALS INC. LONDON PITTSBURG USA FLORIDA 2939 Portland Drive, Suite 300, Oakville, Ontario, L6H 5S4, Canada (T) +1-289-291-1111 anil@ni-met.com CANADA INDIA U.A.E THAILAND CHINA
NI-MET PRODUCTS STAINLESS RAW MATERIALS SS 400 MO NI CR FE V OTHER BASE METALS AL ZN CU SCRAP METALS PB AL BRONZE CU BR & FERRO ALLOYS
WHY INDIA? INDIA POPULATION OF 1.3 BILLION 4/500 MILLION MIDDLE CLASS MAJORITY AGE 30 TO 40 2013 SS/CAPITA CONSUMPTION KG, INDIA: 2.1 CANADA: 7.2 USA: 6.5 EU: 9.4 WORLD AVERAGE: 5 KG HIGH GROWTH PROSPECTS FROM BURGEONING MIDDLE CLASS INDIAN GOVERNMENT S THRUST TO AFFORDABLE HOUSING, INFRASTRUCTURE EXPANSION: METRO PROJECTS AND RAILWAY CONVERSION TO STAINLESS STEEL COACHES 2008 STAINLESS MELT OUTPUT 1.980 M TONS 2014 STAINLESS MELT OUTPUT 2.470 M TONS 2016 FORCASTED BY AN ANALYST STAINLESS MELT OUTPUT: 3.70 M TONS
DOING BUSINESS WITH INDIA ADVANTAGES HIGH GROWTH AND DEMAND IN COMING YEARS NEW INFRASTRUCTURE DEVELOPMENTS WILL FURTHER ASSIST PORTS/RAIL/ROAD SAIL: A PRIMARY ROUTE PRODUCER COMMENCING SCRAP IMPORTS - CAPACITY 800 KT SECURED PAYMENT TERMS NEW PRODUCTION FACILITIES WHICH ARE STATE OF THE ART TECHNOLOGICALLY ADVANCED BUT CURRENTLY PRODUCING STEEL CAN BE RAMPED UP TO PRODUCE STAINLESS
DOING BUSINESS WITH INDIA CHALLENGES INDIA S BUREACRATIC SYSTEM PSIC REQUIREMENTS HIGH COST OF FINANCE NON MECHANICAL HANDLING OF MATERIAL, LESS AUTOMATION & MORE DEPENDENCE ON MANUAL LABOUR INADEQUATE INFRASTRUCTURE AT PORTS WHICH ARE IMPROVING CORPORATE INTEREST BORROWINGS @ 12% P.A. OR HIGHER LOGISTICS AND TRANSPORTATION HURDLES LONGER VOYAGE TIMES
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA VARIOUS FORMS OF NICKEL AS A RAW MATERIAL
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA PRIMARY NICKEL AS A RAW MATERIAL FOR STAINLESS STEEL PRODUCTION FULL PLATE CATHODES CUT 4 x 4 CATHODES BRIQUETTES
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA FERRO NICKEL AS A RAW MATERIAL FOR STAINLESS PRODUCTION FERRO NICKEL GRANULES FERRO NICKEL INGOTS
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA NICKEL IN SCRAP AS A RAW MATERIAL FOR STAINLESS PRODUCTION STAINLESS 304/316 MELTING GRADE SOLIDS HRB BALES LOOSE BRIQUETTES
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA NICKEL IN SCRAP AS A RAW MATERIAL FOR STAINLESS PRODUCTION STAINLESS 304/316 MELTING GRADE TURNINGS
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA CHANGING FACE OF NICKEL SALES IN INDIA PAST & CURRENT MOST IMPORTS ARE ON FOB OR CIF BASIS NEW TREND STORAGE / INVENTORY IN DEVELOPING FTZ & SEZ IN INDIA. IN WAREHOUSE SALES BECOMING MORE CRUCIAL FOR J.I.T DELIVERIES
INDIA S ARSHIYA FTZ WAREHOUSES 165 Acres State-of-Art Facility 24 km from JNPT Port featuring : 24x7 On-Site Custom Clearance House State-of-the-Art Infrastructure, Equipment & Facilities Connectivity to our Pan-India Rail Network accelerating distribution through aggregation at strategic locations Similar warehouses in new Delhi, Kolkata and Chennai areas All warehouses are free trade zones
INDIA S ARSHIYA FTZ WAREHOUSE Warehouse External View Container Yard Custom Office Entry Warehouse Internal View Docking Area Warehouse External View Warehouse Stuffing at Container Yard Container Yard
INDIA S ARSHIYA FTZ WAREHOUSE Cargo storage inside Warehouse Racking System inside Warehouse Marshalling Area Server Room Electrical Sub-Station Temp. Controlled Area CCTV Cameras
ADANI S MUNDRA S.E.Z & PORT
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA INDIA S IMPORT OF STANLESS RAW MATERIALS
AVERAGE 5 (2009-13) YEARS IMPORTS NICKEL CATHODES - TOP 10 COUNTRIES 6312 23% TOTAL: 27,314 MT 2893 11% 2073 7% 1283 5% 908 3% 766 3% 759 3% 593 589 2% 2% Russian Fed. Australia Norway Canada Finland United Kingdom Japan South Africa China, P.R. Malaysia 11138 41% Ni-Met Sales : AVG 2009-13 :1,400 MT NICKEL 2014-15 YTD : 660 MT
AVERAGE 5 (2009-13)YEARS IMPORTS FERRO NICKEL - TOP 10 COUNTRIES 1841 11% 1754 10% 2083 12% 1027 6% 449 3% 371 2% 309 2% 262 2% TOTAL: 16,880 MT 2972 18% 5812 34% Japan Greece Macedonia Colombia New Caledonia Brazil Korea, Rep. Russian Fed. United Arab Emirates Other Ni-Met Sales : 2009-13 AVG: 600 MT NICKEL 2014-15 YTD:3,310 MT NICKEL
AVERAGE 5 YEARS (2009-13) IMPORTS SS SCRAP- TOP 10 COUNTRIES 20668 7% 24889 8% 17049 6% 27813 9% 16064 6% 13135 5% TOTAL: 294,986 MT 30140 10% 35388 12% 71696 24% 38144 13% Netherlands United Kingdom United States Malaysia United Arab Emirates Thailand Korea, Rep. Singapore South Africa Germany Ni-Met Sales : 2013: 25,791 MT 2014-YTD:19,600 MT
TOTAL NICKEL UNITS IMPORTS INTO INDIA LAST 5 YEARS 160.000 133,642 120.000 110,187 55.434 80.000 58,269 56,455 63,414 49.279 30.818 40.000-21.837 24.232 23.060 32.535 18.483 9.760 6.326 47.390 36.676 23.635 24.553 17.949 2009 2010 2011 2012 2013 Primary Nickel Nickel in Ferro & Oxide Nickel in Scrap SOURCE: INSG
UNDERSTANDING INDIA S IMPORT DUTY STRUCTURE CURRENT EFFECTIVE IMPORT DUTY ON SCRAP, FERRO NICKEL & PRIMARY NICKEL IS SAME 2.61% NET ADVANTAGE OF FERRO NICKEL IS FREE IRON BUT SCRAP IMPORTS IS EQUALLY ESSENTIAL TO PRODUCE COMPETETIVELY
PROVIDING NICKEL TO INCREDIBLE INDIA INDIA S NICKEL PRODUCTION
NICOMET INDUSTRIES LTD EARLIER PRODUCED LME APPROVED COBALT CATHODES CHANGED TO NICKEL CATHODE PRODUCTION OVER THE LAST TWO YEARS PRODUCED LME GRADE NICKEL THOUGH NOT LME APPROVED INSTALLED CAPACITY 3000 MT P.A. 1500 MT NI CONTAINED IN SULPHATE & NITRATED RAW MATERIALS USED: NICKEL HYDROXIDE CONCENTRATED CURRENT PRODUCTION - 2800 MT OF METALS
INDIA S DOMESTIC NICKEL PRODUCTION NICOMET INDUSTRIES LTD.
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA INDIA S STAINLESS PRODUCTION
INDIA S STAINLESS MELT OUTPUT (IN KT) LAST 6 YEARS 2009 2010 2011 2012 2013 2014 Austenitic (300 Series) 329 362 401 416 516 657 Ferritic (400 Series) 160 217 223 280 312 414 CrMn (200 Series) 1513 1591 1646 1774 2063 1969 Total 2002 2170 2270 2470 2891 3040 FORECAST 2015 2016 2017 2018 2019 2020 Austenitic (300 Series) 766 814 863 914 955 998 Ferritic (400 Series) 446 474 503 533 556 581 CrMn (200 Series) 2298 2441 2590 2742 2865 2993 Total 3510 3728 3957 4189 4376 4572
INDIA S STAINLESS OUTPUT BREAKDOWN AUSTENETIC / FERRITIC/ SUR LAST 5 YEARS 2009 2010 2011 2012 2013 SS MELT OUTPUT (KT) 2002 2170 2271 2470 2891 AUSTENETIC ( 300 SERIES) 329 362 401 416 516 FERRETIC ( 400 SERIES) 160 217 223 280 312 CR/MN ( 200 SERIES) 1513 1591 1646 1774 2063 AUSTENETIC RATIO 16.45% 16.68% 17.67% 16.84% 17.84% TOTAL NI UNIT IMPORTS (KT) 58 56 63 110 113 TOTAL NI UNITS CONSUMED (KT) 72 77 90 95 113 NICKEL IN SCRAP(KT) 35 39 45 50 59 SCRAP RATIO (SUR) 49.00% 51.00% 50.50% 52.00% 52.25% SOURCE: CITI RESEARCH
MAJOR INDIAN NICKEL BEARING STAINLESS RAW MATERIAL CONSUMERS
CONCLUSION SS SCRAP DEMAND & SUPPLY DICTATES PRICES MORE SO THAN NI & Mo PRICES NICKEL & ALL OTHER METALS HAVE BECOME MORE SPECULATIVE COMMODITIES FINANCIAL MARKETS PLAY LARGER ROLE THAN FUNDAMENTALS SS SCRAP CONSUMPTION TO GROW IN INDIA & US INDIA WILL HAVE TO PAY HIGHER Ni UNIT PRICES THAN REST OF THE CONSUMING MARKETS IRRATIC BUYING IN U.S. BUT REGULAR & SUSTAINABLE DEMAND IN INDIA NICKEL AND NICKEL BEARING RAW MATERIALS WILL REMAIN ESSENTIAL IMPORT COMMODITIES FOR GROWING INDIAN MARKETS
CONTACT 2939 PORTLAND DRIVE, SUITE 300 OAKVILLE, ONTARIO, L6H 5S4 CANADA (T) +1-289-291-1111 www.ni-met.com EXCLUSIVE AGENTS FOR INDIA METCO MARKETING (INDIA) PVT LTD 104, NIRAJ INDUSTRIAL ESTATE, OFF. MAHAKALI CAVES ROAD ANDHERI EAST, MUMBAI 400093. (T) +91-22-40738484 www.metcoindia.com
NICKEL-AN ESSENTIAL COMMODITY FOR INDIA ANY QUESTIONS