2. INTRODUCTION
Steel is crucial to the development of any modern
economy and is considered to be the backbone of
human civilisation.
It is a product of a large and technologically complex
industry having strong forward and backward linkages
in terms of material flows and income generation.
STEEL SECTOR 2
4. HISTORY
Source: IISI
Stages in Global Production of Steel
STEEL SECTOR 4
5. Crude steel production
(in million tonnes)
RUSSIA, 68.7
INDIA, 72.2
UNITED
STATES, 86.2
JAPAN, 107.6
CHINA, 683.2
STEEL SECTOR 5
6. OUTLOOK
Indian Steel Co. acquiring stakes in the foreign firms to become global
leaders.
Target to achieve an export ratio of around 25% of total production.
Target of 110mT by 2020.
Demand in automobile and infrastructure will lead to growth in steel
industry
Per capita consumption is 40 kg compare to 150kg globally, which has
potential ahead.
Shortage of Cocking coal will be huge challenge.
World steel demand to double in next 25 years, a huge opportunities
for the steel industry.
Upcoming Budget certainly will have great impact on steel industry
future.
STEEL SECTOR 6
7. Steel production in india
Indian steel industry is poised for rapid growth.
Rapid rise in production has resulted in India becoming the
4th largest producer of crude steel and the largest producer
of DRI in the world
Total crude steel production in India for 2010-11 was around
69 million tonnes and it’s expected to increase to nearly 110
million tonnes by 2012-13. Further, if the proposed expansion
plans are implemented, India may become the second largest
crude steel producer in the world by 2015-16.
STEEL SECTOR 7
8. BASED ON OWNERSHIP
PUBLIC PRIVATE
TATA-CORUS
SAIL ESSAR
VISAKHAPATNAM STEEL ISPAT
PLANT
JSW STEEL LIMITED
FERRO SCRAP NIGAM
LIMITED MUKAND LIMITED
BIRD GROUP OF COMPANIES
SPONGE IRON INDIA LIMITED
MECON LIMITED
BHARAT REFRACTORIES
LIMITED
STEEL SECTOR 8
9. TOP 5 STEEL PRODUCING COMPANIES
(GLOBAL) 2011
97.2
100
80
60 44.4 43.3 39.1 37.7
40
20
0
Arcelor Hebei group Baosteel POSCO Wuhan
Mittal group group
(IN MILLION TONNES)
STEEL SECTOR 9
11. Global Scenario
In 2011 the world crude steel production reached
1518 million tonnes (mt) and showed a growth of
6.2% over 2010.
China remained the world’s largest crude steel
producer in 2011 (684 mt) followed by Japan (108
mt), the USA (86.4 mt) and India (72.2 mt; prov)
at the 4th position (72.2 mt).
Per capita finished steel consumption in 2011 is
estimated at 215 kg for world and 460 kg for China.
STEEL SECTOR 11
13. Job opportunities in steel sector
General Managers 1. Support Managers:
Plant Managers Human Resources
Production Managers Purchasing
Production Control Finance
Sales Managers Information
Sales Representatives Technology
Technical Support
Marketing managers
A/c managers
STEEL SECTOR 13
14. CHALLENGES FOR THE MANAGERS
SUPPLY
DEMAND
BARRIERS TO ENTRY
COMPETITION
BARGAINING POWER
OF THE CUSTOMERS
STEEL SECTOR 14
15. Growth Drivers
Key Growth Drivers:
Construction, Automobiles, Infrastructure, Consume
r durable, oil and Gas.
Huge source iron ore, Cheap Labour, quality man
power.
Mostly Steel plants are located near the Raw material
Sources.
Reduction in custom duty in respect of non-alloy
steel production. STEEL SECTOR 15
16. 222 Memorandum of Understandings (MOU) have
been signed with various states for planned
capacity of around 276 million tonnes by 2019-20.
Increase in the demand of steel in India is
expected to be 14% against the global average of 5-
6% due to its strong domestic economy, massive
infrastructure needs and expansion of industrial
production.
Infrastructure projects (like Golden Quadrilateral
and Dedicated Freight Corridor) will give boost to
the demand in the steel sector in near future.
STEEL SECTOR 16
17. SWOT ANALYSIS
Strengths Weaknesses
1. Availability of iron ore and coal 1. Unscientific mining
2. Low labour wage rates 2. Coking coal import dependence
3. Abundance of quality manpower 3. Low R&D investment
4. Mature production base 4. Inadequate infrastructure
Opportunities Threats
1. Unexplored rural market 1. China becoming net exporter
2. Growing domestic demand 2. Protectionism in the West
3. Exports 3. Dumping by competitors
4. Consolidation 4. Global economic slowdown
STEEL SECTOR 17
18. • Investment in infrastructure is crucial to step up demand for
steel.
• Supply may have to be rationalized in line with the demand
(Dom + exports).
• Integrated Mills would hold the key in future growth of
Indian Steel supplies.
• New technologies to use indigenous natural resources would
have to be developed.
STEEL SECTOR 14
19. • WSA(world steel authority)
• Ministry of steel
• http://www.steelpeople.com/special.html
• http://en.wikipedia.org/wiki/Steel
• Economic times
STEEL SECTOR 19