Indian Stainless Steel

Industry –
moving to next level of growth
Presented by :
N.C. Mathur
Advisor – Jindal Stainless Limited
President : ISSDA (Indian Stainless Steel Development Association)
 Contents…..

Evolution of Stainless Steel

Global Stainless Steel Scenario

Indian Stainless Steel Scenario

S.S. Growth Drivers in India

Watch For

Jindal Stainless – Fuel for Growth

Summing Up++
2
 Evolution of
Stainless Steel

Stainless Steel

Chrome

Moly.
Ni.
3
 100 Years of Stainless Steel

1912 1913 1915 1919 1924 1929 1930

1928-1930, the top

After four years seven arches of
of development English Chrysler Building
work in Krupp’s metallurgist are clad in Stainless
laboratories, Harry Brearley Steel. This New
the physicist invents York City landmark
Professor Stainless is one of the world’s
The first
Benno Strauss Steel in his most recognized
Stainless
and his co- search for an skyscrapers.
The first Steel Tanker
worker Dr. alloy to protect During World 1919-1923,
Stainless is used for
Eduard Maurer cannon bores War-I, Sheffield This iconic building
Steel roof transporting
found the fromerosion. Stainless Steel cutlers start inspired new age
makes an 3,000 gallons
formula for is used to regular architects to explore
appearance of milk.
non-rusting manufacture production of the potential of
steels w hich Stainless in America Stainless Steel in
valves for
are insensitive aircraft Steel cutlery, Architecture,
to w ater and engines surgical Building and
humidity scalpels and Construction
tools 4 w orldwide.
 100 Years of Stainless Steel

In the year 1990, Jindal Stainless

became the pioneer in developing
and commercialize 200 Series
(Chrome‐Manganese) Stainless
Steel in India.

1931 1933 1950 1963 1969 2000…

Stainless Steel is
used in the façade
Duplex Grade Stainless of the w ord’s tallest
Steel is first produced in building, the Burj
Sw eden. The first
Khalifa in Dubai,
Stainless Steel
which was opened
Razor Blades
in 2010.
are produced.
The first men
on the moon
(Apollo 11) are
Stainless Steel Stainless Steel is taken there by
Kitchen Sinks used w ith a Stainless
and furniture are increasing Steel Saturn V
The first Stainless Steel introduced. frequency in the Rocket.
railw ay carriage appears automobile
in the US. Also, Rolls industry.
Royce produces the first
Stainless Steel radiator
grill and emblem.
5
Global Stainless
Steel Scenario

6
Stainless Steel Crude Production

7
Source: ISSF
Stainless Steel Consumption Growth*
(BRIC Countries Vs. Rest of the World)
BRIC countries
Market share
>50% in 2011 !

8
Source: SMR
 Global Stainless Steel Recovery

In 2010, World Stainless Steel Industry recovers, but China accounts for all the Growth since 2000.
9
Source: ISSF
 Stainless Steel Production Growth
(2000 – 2010)

Most of the Stainless Steel Production Growth during the last decade is attributable to S200 and S400.

10
Source: ISSF
China is by far No. 1 (39%) of the S.S. Markets

11
Source: SMR
2016 : Total World market will be over 40 mill. tonnes

12
Source: SMR
Stainless Steel : Grade Structures
Over 30 mill. tonnes of Finished Products in 2011

13
Source: SMR
Top 20 : SS Flat products producers 2011

14
Source: SMR
Global Evolution of Low Nickel
Austenitic SS Grades
(CrMn : 200 Series)

15
History of Low Ni. Austenitic Stainless Steel Grades

As early as 1940's saw the development of 200 Series

Stainless Steel. Certain Countries facing Nickel
shortage during World War-II developed the
conventional 200 series grades namely 201 and 202 by
replacing part of Ni. by Mn. As of now standards such
as ASTM A240 have in them four variants of 201
containing Ni average 3.5 to 4.0% and two variants of
202 having average Ni between 4.0 to 5.0%.

16
Chrome‐Manganese SS : Historical Development

• 15% Cr-Mn-1.5Ni. Stainless Steels were in use in Germany in

1940’s

• Used in Dairy Industry, Beer Industry and House-hold

Appliances.

• In early 50’s during Korean War, U.S. Government restriction of

1% Nickel (max.) for Stainless Steel in certain applications.

• Following Grades developed by ALLEGHENY termed IA 201

Cr. Mn. C Ni. N Substitute

(Min.) (Min.) (Max) (Max) (Max) for AISI
14.5 15 0.15 0.99 0.25 301

17
Chrome‐Manganese SS : Post Korean War Scenario

Post Korean War Scenario

• Softer Alloys preferred

• Half of Nickel only replaced by Mn. and N.

• AISI designation in 1955 to 201 and 202

Grade C Cr. Mn. N Ni.

201 0.15 Max 16.0 – 18.0 5.5 – 7.5 0.25 Max 3.5 – 5.5

202 0.15 Max 17.0 – 19.0 7.5 – 10.0 0.25 Max 4.0 – 6.0

18
Chrome‐Manganese Stainless Steel

Advent of Argon-Oxygen-Decarburization resulted in use

of cheaper inputs:

• High Carbon Ferro-Manganese

• Gaseous Nitrogen for Alloying

• Lower Argon consumption in Cr-Mn

Result:
Production of 40,000 tons per year 200 Series worldwide in
1970’s.

19
Evolution of Chrome‐Manganese                           
Stainless Steel in India

o High Nickel prices in 1989 : $ 18,000 per ton

o Foreign Exchange Restrictions

o Main end use in India – Kitchenware

9 15 years of R & D efforts of Jindal Stainless to develop

special grades for the domestic market

9 Since 2001, introduction of Jindal Stainless grades, J1 & J4

in international markets

20
 Global CrMn Crude Steel Production

tons

2007 2008 2009 2010 2011

21
Source: ISSF
 World Per Capita Stainless Steel Consumption

Low per capita consumption of Stainless Steel in India provides an interesting opportunity for growth

Source: IMF (October 2010 Report), CRU International Limited - Stainless Steel Flat Products Quarterly February 2011
Note: All values for 2010, Size of the circles is proportional to the population count for 2010
22
Indian Stainless
Steel Scenario

23
 Opportunities in Indian Infrastructure Structure

¾ India plans to spend US$1 Trillion on infrastructure in next five years.

¾ Indian airports require investments worth US$13 billion in next five

years; private sector to contribute US$10 billion.

¾ Highways sector will attract investments worth US$123 billion in next

5 years.

¾ US$300 billion planned to be spent on upgrading rail infrastructure

(including new rail lines, double/multiple lines, high‐speed rail) by
2020.

¾ Around $55 billion worth investments planned in major and non‐

major ports by 2020.

24
 India poised for strong economic growth

The Indian economy is poised for

rapid growth : To reach USD 4
trillion by 2020

4,500 USD Bn
9 By 2020, estimates suggest that GDP‐ Gross Domestic  4,000 
Indian GDP could rise to USD 4 Product (US$ Bn)  
trillion, taking India to fourth
place behind the US, China and 3,000
Japan by size of economy 2,777 

9 High level of Infra spending

1,500 1,538 

9 High consumer spending in areas 810 

like housing, auto and consumer 480 

durables 0

Source: CIA World Factbook, IMF
25
 Increasing Consumer Spent Driving Economic 
Growth
Growth Consumption Spending by 2020 GDP Per Capita  on PPP  basis (USD)
Year 10‐16E

x times 2010 consumption  spending
6
5
4
3
2
1
0

Construction sector expected to grow by 22% annually & would reach USD 335 billion by 2016

Auto component sector expected to rise 17% annually to reach USD 84 billion by 2020

Electronics sector CAGR to be around 23% to reach USD 363 billion by 2015
Source: Goldman Sachs Global Economics Research, IMF  26
 Stainless Steel Consumption Pattern (%)

70 65
India World
60

50

40 33
27
(%)

30

20
16
10 12
8 6 6 6
10 5 6

27
India’s SS consumption growth to exceed global 
growth

3,500

2,100
1,817
1,537 1,575

2007 2008 2009 2010 2015

2007 2008 2009 2010 2015

World SS consumption (Flat + Long) in ‘000 MT India SS consumption (Flat + Long) in ‘000  MT

Indian SS consumption is expected to grow by 11% annually  and would reach 
around 3.5 million tons by 2015

28
SS Growth Drivers
in India

29
 SS Growth Drivers in India

ABC ART Process & Consumer

• SS roofing sheets •Luxury Bus bodies Engineering Durables
• Decorative and color • Nuclear grade SS for • India as hub for white
coated SS •Auto chassis, trims, fuel containment and goods manufacturing
• Street furniture suspension parts, waste handling
• Escalators, elevators fuel tanks, catalytic • SS used as
• Claddings convertors • Super critical boilers components
• Railings in power plants
• Airports •Railway wagons and
coaches • Water treatment and
• Railway station up
gradation •Metro coaches drinking water supply
• Desalination
applications

30
 Stainless Steel in Railways

Railways
• New Stainless Steel
Wagons & Coaches
• Refurbishing
Railway Stations
with world class
facilities
• Development of
Metro Rail projects
and street
infrastructure
Delhi Metro

31
 Stainless Steel in Railways

Railway Stations :  Cladding , Roofing , Structures , 
Railways Decoration , Selling Carts , Display Boards , Ticketing 
Area , Seating Space  ,Floor Tiles ….

32
 Stainless Steel in Architecture, Building & 
Construction (ABC)

ABC
• Urban Renewal in
the form of Street
furniture e.g. Bus
Shelters
• Shopping Malls,
organized retail is
growing at rapid
pace.
• Modular kitchens
• Airports
Delhi Bus Shelter
33
 Stainless Steel in Architecture, Building & 
Construction (ABC)
SS Modular Kitchen

New age applications in 
Household
• Kitchen Applications
• Bathroom Accessories
• White Goods
• Lifestyle Products
• Interior Decoration

34
 Stainless Steel in Architecture, Building & 
Construction (ABC)

Wall Cladding, Roofing, Check in Area, Seating Spaces, 
Immigration Area, Railings, Display Boards, Lounge, Booths, Duty 
Airports Free Area, Signage, Decorative, Elevators , Escalators , 
Travelators, Food Courts….

35
 Stainless Steel in Industrial Applications

Industrial 
Applications
• Power
• Process 
Industry

36
 Stainless Steel in Auto and White Goods

Automotive and 
White goods
• India a leading automobile 
hub in S.Asia, specially for 
two wheelers and small cars
• Increase usage of Stainless 
Steel in exhaust, wheel rims 
etc.
• Large middle class driving 
White Goods market

37
 Indian Automotive : Growth Prospects

32.3 mill
Source : FICCI Nov 2009

11.2 mill
10.8 mill
11.1 mill
8.5 mill 9.7 mill

• India destined  as a major Automotive hub in South Asia.
• A large manufacturing base for Two wheelers / Small cars / Steel and Stainless Steel 
components for automobiles. 38
What Next???

39
Applications ‐ Arriving shortly… ( India )

Bus Body LPG Cylinder

Cycle Rim Plumbing

Hospital Furniture Water Tanks

Railway Passenger
Coaches
40
Applications ‐ Arriving shortly… ( India )

Bicycle Rim & Gas Cylinder

41
Applications ‐ Arriving shortly… ( India )

Plumbing
42
Applications ‐ Arriving shortly… ( India )

Water Storage Tank

43
Applications ‐ Arriving shortly… ( India )

Hospital Accessories

44
Applications ‐ Arriving shortly… ( India )

Bus Body

45 45
Applications ‐ Arriving shortly… ( India )

Bus Body

46 46
Applications ‐ Arriving shortly… ( India )

Railway Passenger Coaches

47
But???

48
 Challenges Ahead

™ Inadequate Infrastructure – Energy, logistics, ports

etc. not conducive to growth of manufacturing sector

™ Infrastructure projects subject to delays and financial

constraints

™ Budget constraints Vs. Life Cycle benefits of

Stainless Steel

™ Dependence on imports for certain raw material –

Nickel, SS Scrap , Moly.
49
Watch For….

50
 Changes in the Market Place…

Increasing ABC India as export

Railway
applications hub for

• Metro in major cities • Selective Rebar's • Auto Components

• Railway Wagons • Door &Windows • Appliances
• Coach Up-gradation • Cladding • Mill Products
• SS usage in • Signage's • High Quality Value
Platforms • Street Furniture Added Engineering

• Fasteners Products

• Life Style products

51
 Movements in environment……… 

ƒ RM Price Fluctuations ( Ni, Cr, Scrap )

ƒ Grade / Series Substitution in Industry

ƒ Standardization (IKEA/ Whirlpool / Electrolux moving

to 400 Series)

52
 Raw Material : Price Volatility
Since 1990

Nickel (key Raw Material for Stainless Steel) trades over a wider Price Range than other base Metals.
Source : Metalytics
53
 Invent ory (MT)

0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Jun‐03

Aug‐03

Oct‐03
Dec‐03

Feb‐ 04

Apr‐ 04
Jun‐04

June-2003
Aug‐04
Oct‐04

Dec‐04

Feb‐ 05
Apr‐ 05

Inventory : 24374 MT
Jun‐05
Aug‐05

Price : USD 8878 per MT

Oct‐05

Dec‐05
Feb‐ 06

Apr‐ 06
Jun‐06

Aug‐06

Oct‐06
Dec‐06

Feb‐ 07
Apr‐ 07
May- 2007

Jun‐07

Aug‐07
Inventory (MT)

Oct‐07

Dec‐07
Inventory : 5550 MT

Perio d
Feb‐ 08

Apr‐ 08
Price : USD 55179 per MT

Jun‐08
Aug‐08

Oct‐08
Dec‐08
Price (USD/MT)

Feb‐ 09

Apr‐ 09
Jun‐09

Aug‐09
Oct‐09
LME Nickel Volatility

Dec‐09

Feb‐ 10
Apr‐ 10
54

Jun‐10
Aug‐10

Oct‐10

Dec‐10
Feb‐ 11

Apr‐ 11
Key Raw Material for Stainless Steel

Jun‐11

Aug‐11
June-2012

Oct‐11
Dec‐11

Feb‐ 12
Apr‐ 12

Jun‐12
Inventory : 104171MT

0
10000
20000
30000
40000
50000
60000

Price : USD 16539 per MT

Pri ce (USD/MT)
 Stainless Steel Raw Material : Price Volatility
(2000 – 2010)

Over the last 10 years, Raw Materials’ Prices and Volatility have increased tremendously.
Source : ISSF
55
Fuel for growth……
56
 Jindal Stainless:
India’s Largest Integrated SS Mill

Advanced Stainless  State of Art cold 
Steel melting & Hot  rolling facilities in 
Rolling Technology India and Indonesia

Ferro Alloys   
Manufacturing  Global distribution 
network with own 
& 
service centers
Power Generation

MINES
Leader in Domestic 
Mining ventures and 
ore linkages TO Market with wide 
product  range

MINT

57
 Hisar Plant : Pioneer of Stainless Steel

Hisar Plant with 780,000 tons  Facilities Capacity (MT)

Stainless Steel capacity
SMS 780,000 

HR‐Steckel 720,000 
780,000  2011 HR ‐ Tandem Strip Mill 250,000 
MT

HRAP & Plate 235,000 

Cold Rolling 275,000 
400,000 
MT
Special Products 25,000 
Till 2004
250,000 
MT
Coin Blanking 10,000 

Ferro Chrome – Vizag plant

Till 2000 (Integrated with Sukhinda chrome  40,000
mines)

World’s  largest  producer of  Razor Blade Steel
58
 Odisha Plant : The Future of Stainless Steel 

Odisha Plant  with 1,000,000 MT  Facilities Capacity (MT)

Stainless Steel capacity

SMS 1, 000,000 
1.0  Mill

Hot Strip Mill 1,600,000 

0.1 Mill Mill Plate & AP 100,000 

HAPL 950,000 

Cold Rolling 450,000 

2011-12
2012-13

59
Odisha Plant : An Overview

60
 Integration with Extensive Coverage

PT Jindal Stainless (Indonesia) • Cold Rolling Unit

Jindal Stainless Steelway Ltd • Stainless Steel Service Centers

Jindal Architecture Ltd • Turnkey solutions in SS for  ABC,

JSL Lifestyle Ltd • Lifestyle Products

Iberjindal (Spain) • International SS Service centre

61
Domestic Presence

Corporate Office 
at 
New Delhi

62
Global Presence

63
Europe : Making a Mart

Service Centre ‐ Spain

64
 Jindal Stainless : Fuel for Growth

™ High Level of Integration – from Mining to Manufacturing

™ State of the Art Technologies – the QUALITY Advantage

™ Wise Spectrum of products – Precision Strips, Blade    
Steels & Coin  Blanks

™ Market development of new applications

65
 Indian Stainless Steel Industry Outlook

• High growth economy
Prospects
• Increasing SS consumption

• ABC (Architecture, Building & Construction)
Growth   • Automobile 
Area
• Railways

• Indian Infrastructure 
Challenges • China Capacities
• RM Volatility 

66
Summing up ++

67
 Summing Up++

Indian Stainless Steel Market

™ SS Production will go up to 3.5 Million Tons by 2015
™ Overcapacity in the market .. export boost up
™ Scope for double digit growth in SS Consumption
(Growth in SS Consumption is about 1.2 Times GDP )

™ New applications will emerge very fast
™ Opportunities for business in downstream industries
™ SS will change the face of India

68