Itdsailreport 120421105844 Phpapp02

SUMMER TRAINING PROJECT REPORT
ON
EXPORT POTENTIAL OF STEEL REBAR AND BILLETS IN MENA REGION
Undertaken at
Submitted for the Partial fulfilment of the requirement

towards the award of Degree of
Master of International Business (MIB)
Session 2010-2012
Submitted by:
Soobian Ahmed
10-MIB-40
10-6537
Under the Supervision of

Mr. Rohan Singh
Junior Manager (Marketing-ITD)
CENTRE FOR MANAGEMENT STUDIES

JAMIA MILLIA ISLAMIA
New Delhi-110025
Mena Market Analysis for Steel Billets and Rebars
DECLARATION
I, SOOBIAN AHMED, a bonafide student of MIB (Full Time) Programme at the Centre
for Management Studies, Jamia Millia Islamia, New Delhi, hereby declare that I have
undergone the Summer Training at STEEL AUTHORITY OF INDIA LTD,
INTERNATIONAL TRADE DIVISION, India under the supervision of Mr. ROHAN SINGH
on export potential of Steel Billets and Rebars .
I also declare that the present project report is based on the above summer training
and is my original work. The content of this project report has not been submitted to
any other university or institute either in part or in full for the award of any degree,
diploma or fellowship.
Further, I assign the right to the university, subject to the permission from the
organization concerned, use the information and contents of this project to develop
cases, case lets, case leads, and papers for publication and/or for use in teaching.
SOOBIAN AHMED
10-MIB-40
ACKNOWLEDGEMENT
I am heartily thankful to my supervisor Mr .Rohan Singh, JM(Marketing-ITD), whose encouragement,
guidance and support from the initial to the final level enabled me to develop an understanding of
the project .It is his support and guidance due to which I remain able to come out with this project
report.
I owe the highest sense of appreciation for the talented, Cooperating and hardworking team of SAIL
(ITD) especially Mrs. Shanta Rao, DGM (Marketing-ITD) numerous other officials for cooperating
during the Internship and for providing me the most valuable comments and suggestions without
which this report might not have been complete.
I also wish to express my gratitude to the management of SAIL-INTERNATIONAL TRADE DIVISION,

who rendered their help during the period of my project work.
Last but not least I wish to avail myself of this opportunity, express a sense of gratitude and love to
my friends and my beloved parents, my brother for their immense support, strength, their faith in
me and for everything.
SOOBIAN AHMED
EXECUTIVE SUMMARY
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a
fully integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defence industries and for sale
in export markets. SAIL is also among the five Maharatnas of the country's Central Public
Sector Enterprises.
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled
sheets and coils, galvanised sheets, electrical sheets, structurals, railways products,
plates, bars and rods, stainless steel and other alloy steels. SAIL produces iron and steel at
five integrated plants and three special steel plants, located principally in the eastern and
central regions of India and situated close to domestic sources of raw materials, including
the Company's iron ore, limestone and dolomite mines. The company has the distinction
of being Indias second largest producer of iron ore and of having the countrys second
largest mines network. This gives SAIL a competitive edge in terms of captive availability of
iron ore, limestone, and dolomite which are inputs for steel making.
SAIL's wide range of long and flat steel products is much in demand in the domestic as
well as the international market. This vital responsibility is carried out by SAIL's own
Central Marketing Organisation (CMO) that transacts business through its network of 37
Branch Sales Offices spread across the four regions, 25 Departmental Warehouses, 42
Consignment Agents and 27 Customer Contact Offices. CMOs domestic marketing effort
is supplemented by its ever widening network of rural dealers who meet the demands of
the smallest customers in the remotest corners of the country. With the total number of
dealers over 2000, SAIL's wide marketing spread ensures availability of quality steel in
virtually all the districts of the country.
SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit of
CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated
steel plants.
The research has been carried out to Estimate the Export Potential of steel billets and
Rebars with focus on MENA (Middle East & North Africa) region. The scope of the study
covers the competition patterns of both the products globally as well as regionally. The
report is based on the desk research methodology .The study covers the duty structure of
both the products in prospective markets. The research study puts special emphasis on
the pricing pattern of billets from Turkey and CIS which are the major suppliers of these
products. The research is also done on three African states which, at the moment have no
such big steel industry but the government policies and changing economic and political
environment makes it difficult to ignore such market.
The Middle East and North Africa (MENA) region is considered currently a key growth
markets for the steel industry at the consumption and production alike due to the fastexpanding construction & fabrication sector. It has witnessed major transformations over
the past years, as Arabian countries try to emerge from the shadows of the developed world
and become more industry oriented.
The Middle East and North Africa (MENA) remains a source of high demand for steel, which
continues to outpace the rest of the world. Meanwhile, a persistent trend of recycling high
gas and oil prices into construction and capital investments in the region continues to serve
fast-growing, increasingly wealth populations. These trends have been in place for nearly a
decade now as a result supply is being developed to meet the higher levels of demand.
Nonetheless, external suppliers remain important players as they fulfil over one-third of
demand generated in the MENA region.
Over the past couple of years, the steel industry worldwide has been experiencing stunning
growth and the Middle East has flourished to become major players in the steel market. The
real estate sector has been at the heart of the demand, as this sector witnessed tremendous
activity. Consequently, steel companies in the MENA region entered 2008 strongly, pushed
by their momentum and massive profits achieved in the previous year. In 2007, Egypt and
Saudi Arabia ranked 27th and 35th, respectively, among the worlds steel producing
countries and in 2010, Egypt and Saudi Arabia ranked 24th and 28 th respectively.
There are 67 steel plants in the Arab region. The demand for steel is rising at five to six per
cent every year. It is predicted that half of the world's steel production will be done in Arab
countries by 2012 and Arab countries succeed in keep up with worldwide development in
the steel industry. The MENA region is considered to be among the top five locations in the
world to establish a steel factory, due to a favourable demand ,congenial environment and
relatively cheap energy prices.
The Egyptian steel industry represents one of the cornerstones of Egypts economic growth
and development, due to its linkages to almost all other industries that stimulate economic
expansion. Steel is everywhere, in construction, housing, infrastructure, consumer goods
and automotive industry, all rely heavily on the steel industry and so, the importance and
development of the steel sector is imperative for the progress of the Egyptian economy in
general.
5
Egypt is definitely playing a key role as a major producer of steel in the Middle East & North
Africa. In addition to the rapid growth in population (now more than 88 million and rising at
2% per year) and in the economy, which gained 7% last year to achieve per capita GDP of
$5400. Further to, in a ranking of 59 countries, "FDI Intelligence" ranks Egypt 2nd in Africa
with regard to Foreign Direct Investment (FDI) in FY 2009/2010. This affected on the
growing of the steel industry in Egypt.
The recent political uprising in MENA region has certainly affected the business but there is
a bigger opportunity for Exporters to MENA region as the governments of Kuwait, Kingdom
of Saudi Arabia and Republic of Syria has announced the Billions of dollar packages of
developments to suppress the dissent in protestors even by distributing cash subsidy and
money to buy homes for them which will boost the demand for housing and infrastructure
sectors once again in MENA region. Kingdom of Saudi Arabia has allotted US $ 6 billion for
housing projects for enabling people to buy home.
Morocco was ranked 3rd, Sudan 15th and Ethiopia 10th by Grail Research among African
nations in Steel producing capabilities. The Sudanese iron and steel industry
began contributing to meeting the growing domestic needs of the iron and steel products
represented in the reinforcing steel, wire rods and tubes and pipes. This industry has seen
its start-up in concurrence with founding Giad industrial city established by the Sudan
Master Technology Company. The annual production capacities are estimated by 60
thousand tons of crude steel, 150 thousand tons of long products and 140 thousand tons of
pipes. Sudan Master Technologies Company completed the iron and steel complex
consisted of two mills, the first specialised in billets production with a capacity of 60
thousand tons per year, which comprises one electric arc furnace, and one Ladle furnace to
receive the molten metal with the capacity of 25 tons charge. The second mill is specialised
in reinforcing steel production of a range of 8 25 mm diameters, angles of 25 to 50 mm
sizes and 3-4 mm thickness, and flats with 16-60 mm sizes and 3-10 mm thickness. The
investment value in this mill is 38 million U.S dollars. It employs 130 workers, engineers and
administrative personnel. It extends over an area of 33 km 2.
The production of crude steel of MENA region has risen by 13% in 2010-2011.This is also
due to the upcoming football world cup in 2022 in Qatar and the proposed housing projects
by many Arab nations.
CONTENTS
Certificate
Declaration by the Trainee
Acknowledgement
Executive Summary
Contents
CHAPTER 1
Page Number
1.1 Export Potential: Brief introduction of Issues
1.2 Export product of Steel Authority of India Limited
11
1.3 Scope of Study
11
1.4 Objectives of Research Study
12
1.5 Research Methodology
12
CHAPTER 2
2.1 World Steel Scenario
14
2.2 Indian Steel Scenario
22
2.3 A glance at Steel Authority of India Limited
29
2.4 Products of SAIL
30
2.5 Plants of SAIL
30
2.6 Main activities of SAIL
31
2.7 Ownership and Management
32
2.8 SAIL-International Trade Division (ITD)
34
2.9 SAILs corporate plan
35
2.10 SAIL FY 11 Report
39
CHAPTER 3
EXPORT POTENTIAL OF BILLETS WITH FOCUS ON MENA
3.1 Market Introduction
7
42
3.2 Major steel Companies in MENA
41
3.3 MENA steel scenario
44
3.4 Steel Billet: Product introduction
45
3.5 Steel Manufacturing process
46
3.6 World Steel Billet Scenario
49
3.7 Black Sea Billet pricing
56
3.8 Turkey Billet and Scrap price Comparison
57
3.9 Final Analysis of Turkey Market: The Competitor
58
3.10 Steel Billet Manufacturers
59
3.11 Results and discussion
61
CHAPTER 4
EXPORT POTENTIAL OF REBAR IN MENA REGION
4.1 Export potential of Rebar in MENA
62
4.2 List of Certifying Agency for Rebar
64
4.3 World rebar production
67
4.4 World Rebar Pricing
69
4.5 China Rebar Production- The Competitor
70
4.6 Asia Rebar Trend
71
4.7 MENA region steel Rebar producing Companies
71
4.8 MENA Apparent Steel Consumption
76
CHAPTER 5
5.1 INDIA GCC FTA
80
5.2 Turkey A Key Competitor
81
5.3 Major Infrastructure project in MENA
83
5.4 World Steel Forecast

Suggestion
Bibliography
89
91
92
1.1 EXPORT POTENTIAL: A BRIEF BACKGROUND OF ISSUES

Export Potential involves studying, analysing the actual potential of a Product in an
International Market. Export Potential involves doing a complete market research on a
prospective market. It is through International Market Research that a Potential of a
product is estimated and then implemented. The techniques or methods of estimating the
export potential are, by and large, the same/familiar for different markets but these may
have to be varied depending upon the market characteristics, the time and money to be
spent and the availability of data or information. Export potential is a highly technical and
scientific activity, requiring good planning and methodology to find out the accurate
information on the market.
EXPORT POTENTIAL COVERS
Estimating the Export Potential usually involves the following attributes:

A. Exporting Country Trade Regulations.
B. Market Access covering tariffs and Quotas, internal taxes, currency restrictions, health and
political factors
C. Market Size covering production, imports, exports, consumption, derived demand and
market segmentation
D. Factors affecting demand such as economic , climate, geography, social and cultural factors
E. The most important and foremost is the level of Competition
F. Product research covering such as packing for shipment and the product pack.
G. Marketing Practices covering such as Transport logistics, Sales and Distribution, Pricing etc
RESREARCH TECHNIQUES OF ESTIMATING EXPORT POTENTIAL

The numbers of research techniques are used for appropriate information for export
marketing. Different methodology is employed according to the objective and scope defined
for research.
Basically there are two methods
A. Desk Research or Secondary Research
B. Field Research or Primary Research
DESK RESEARCH/SECONDARY DATA

Desk or secondary research is the search for information from relevant data already
available. The data could take the form of information from censuses or information readily
available from industry and trade directories.
9
A. Desk Research uses secondary data from:

B. Internal sources i.e. company itself
C. External sources using libraries of industry and trade associations, chambers of commerce,
export promotion organizations, international bodies such as International Trade Centre,
Geneva, CBI, Holland etc
D. Internet sites of various agencies/organizations such as ITPO,WTO,IMF,ITC etc
E. Publications(books, magazines, journals, newspapers)
F. Market study/survey reports
G. Trade delegation reports
H. Catalogues of MNCs or leading world manufacturers
I. Company profiles
J. Market intelligence reports
FIELD RESEARCH OR PRIMARY RESEARCH

Field research is employed to collect primary data by:
A. Observation method
B. Survey method
Field Research focuses on consumer or buyers motives (e.g. Why they will buy your product
instead of your competitors product), which forms the basis of the positioning strategy.
The process of conducting field research in estimating the export potential includes
1. visiting the researcher own country
2. Visiting potential overseas markets which involves
A.
B.
C.
D.
Planning of visits
Seeking /making appointments with target companies/organizations
Field research in exhibitions/trade fairs which involves Right Timing
Questionnaire
10
1.2 EXPORT POTENTIAL OF PRODUCTS OF STEEL AUTHORITY OF INDIA

LIMITED: A BRIEF BACKGROUND
Steel Authority of India Limited exports its Steel Products through its International Trade
Division. International Trade Division (ITD) of SAIL at New Delhi an ISO 9001:2000
accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs
five integrated steel plants.
SAIL from time to time conducts International Marketing research for estimating Export
potential of its Steel Products. SAIL maintains a close liaison with various information
agencies, bodies, organizations for extracting a relevant PRODUCT-MARKET match.
ITD is vigilant in meeting the demands of its global customers; ITD maintains a close liaison
with customers and the production units to cater to the customized requirements of its
customers both in terms of quality and sizes. ITD exports its product through Vizag,
Vishakhapatnam, Haldia, Paradip ports.
ITD exports steel products mentioned below via its joint venture service centre
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Rails,
Structurals,
Merchant Products,
Wire Rods,
Re-bars,
Plate Mill Plates,
Hot Rolled Coils,
Hot Rolled Plates / Sheets,
Cold Rolled steels,
Chequered Plates,
Slabs, Billets and Pig Iron.
1.3 OBJECTIVES OF RESEARCH STUDY

1.3.1 TO STUDY THE EXPORT POTENTIAL OF BILLETS WITH FOCUS ON MENA REGION
MARKET
A.
B.
C.
D.
E.
F.
G.
I.
To Study the product line of SAIL

To study the Billet production capacity of SAIL
To study the BILLET Specifications around the world
To study the Pricing pattern of BILLETS involving CIS, Turkey markets.
To study the Global market players in BILLETS.
To study the Import Prices of Billets in MENA Markets.
To study the Market Access of Billets in MENA Markets
To study the Free Trade Agreements of India and MENA Markets
11
1.3.2 TO STUDY THE EXPORT POTENTIAL OF REBARS FROM SAIL

A.
B.
C.
D.
E.
F.
G.
To study the product offering of sail in terms of Rebar.

To study the Rebars standards and specifications around the world.
To study the Rebar production capacity of SAIL
To study the global Rebar production.
To study the market access for rebar.
To study the Major Competitors in the Rebar segment.
To recommend Steel Authority of India Limited on Export Potential of Rebar.
1.4 SCOPE OF STUDY

The research study covers the Export Potential of BILLETS manufactured by SAIL. The study
also looks into the Export potential of Rebars in MENA market and Export potential of Billets
in MENA market. The study looks into the competition patterns of both the products
globally as well as regionally. The study also covers the duty structure of both the products
in prospective markets.
The research study puts special emphasis on the pricing pattern of billets from Turkey and
CIS which are the major suppliers of the product. The study also covers the product offering
of other market players for both the products.
1.5 RESEARCH METHODOLOGY

The data for determining the Export Potential was based on secondary research and was
entirely a desk based research. The data was collected in combination of literature search
and analysis. Data from secondary sources such as research papers, internet and magazines
was collected. The raw data were tabulated, processed and analyzed using the appropriate
statistical techniques such as percentage averages, values and units presented in the form
of Bar Chart in the light of clarity obtained in the course of the type of data encountered.
DATA COLLECTION
The present study has made the use of the following sources of secondary study:
1. Iron and steel bulletins such as Metal Bulletin.
2. Relevant books, Magazines, newspapers such as Hindu, Economic Times
3. Relevant public records and statistics, historical documents and other sources of public
information related with iron and steel trade
4. Relevant websites of international organizations such as WTO, IMF, ITC
12
5. Information from within Steel Authority of India Limited

6. Government websites such as Customs Australia, DGFT India, DGCI&S
The sources for unpublished data are many, for example relevant data may be available
with scholars and research workers. However, these sources are not easy to access and
need a lot of persuasion and lot of time. The researcher has not used such resources given
the limitation of time available. The researcher has made used secondary data in
formulation of research problem and identification of research objectives. Due care was
taken to assess such data for its suitability for the study, because many such secondary data
was found to be irrelevant to the research problem as also inadequate in the context of the
problem which researcher want to study.
13
WORLD STEEL INDUSTRY SCENARIO
14
2.1 WORLD STEEL INDUSTRY SCENARIO

The 2009 global downturn and the subsequent recovery have brought to light the increasing
importance of China and India to the world steel industry. In 2010, recovery in steel demand was far
from consistent across the globe and steelmakers had to work hard to manage their working capital
as a result of fluctuating demand. However, while most of the global steel industry continued to feel
pressure from the recessionary trends of 2009, steel demand and associated production in the BRICK
(Brazil, Russia, India, China and Korea) regions continued to be a key driver in growth. Brazil and
South Korea recovered strongly from the economic crisis and are expected to register higher steel
production in the medium term.
However, the real shining lights on the horizon as far as growth in crude steel production, and the
next frontier of growth, can be seen in both China and India. Both countries domestic steel demand
not only survived the economic slowdown, but they also grew at a significant rate. As a
consequence, China has become the virtual engine of the global steel industry, accounting for 45%
of production in 2010, but India too has shown it is rapidly becoming an important part of the
international steel market place. Indeed, it was recently confirmed as the fifth largest steel producer
in the world, and there are strong predictions it will become the second largest steel producer
globally in coming years.
In 2011, global steelmakers are hoping for a more stable rate of recovery in demand. This will be
dependent on whether there is an increase in consumer spending and business investment, to
compensate for the potential lessening of government fiscal stimuli. Due to the sovereign debt crisis
of many developed countries, there has been a marked shift from stimuli to austerity. In addition,
the massive rise in oil prices inspired by political turmoil in the Middle East, coupled with the recent
catastrophic events in Japan, increases the risks of a slowdown in growth during 2011. Global trade
is estimated to grow by 5.7% in2011, which is a significant softening from 2010 when global
restocking fuelled an 11.5 % increase. The future of both the developed and the developing world
will be governed by different sets of factors. The emerging markets of China and India will continue
to witness strong growth in their steel industries due to robust demand for construction and civil
engineering, automotive and mechanical engineering .The growth of developed market show ever
will be more dependent on supply-side response, innovative product offerings and substitutions. The
key driving factor for the profitability of all steel players will ultimately depend on more tightly
managed operating expenses and capital expenditure.
Global Economy projected to grow by 4.4 percent in 2011 after clocking 5.0 percent in 2010.
Subdued steel demand in EU, Japan and USA. Restriction on real estate and restructuring of small
scale polluting steel units accompanied by infrastructure build up of backward areas inside the
coastal belt in China maintain a moderate growth in demand in China. Rising trend in Finished Steel
prices particularly in flat prices following rise in Coal and Iron Ore prices more backed up by cost of
raw materials rather than by effective demand.
Steel industry will witness big changes such as less imports, higher domestic production and greater
investment in raw material. In 2011, it is expected that imports would consist mainly of raw material
and nearly zero semis and finished construction steel. Construction steel is a big sector that gathers
many top domestic steel businesses. Demand forecasts of construction steel, steel pipe and
15
galvanized products are optimistic. However, development of pipe and galvanized sections will meet
difficulty because of constrained supply of raw material.
World crude steel production in the first six months of 2011 was 757.8 mmt, 7.6% higher in
comparison with the same period of 2010. All major steel-producing regions showed increased
production. Chinas crude steel production for June 2011 was 59.9 mmt, an increase of 11.9%
compared to June 2010.
Elsewhere in Asia, Japan produced 8.9 mmt of crude steel in June 2011, down -5% compared to the
same month last year. India produced 6.0 mmt for June 2011, an increase of 7.3% over June 2010.
South Koreas crude steel production for June 2011 was 5.7mmt, 19% up compared to June 2010.
In the EU, Germanys crude steel production for June 2011 was 3.9 mmt, an increase of 0.2% on June
2010. Italy produced 2.6 mmt, 15.2% higher than the same month in 2010. Spains crude steel
production for June 2011 was 1.5 mmt, up 4.5% on June 2010. France produced 1.4 mmt of crude
steel in June 2011, a decrease of -6.1% compared to June 2010.
Turkey produced 2.8 mmt of crude steel in June 2011, 12.3% higher than June 2010. The US
produced 7.2 mmt of crude steel in June 2011, an increase of 1.7% compared to June 2010. Brazilian
crude steel production was 3.0 mmt, 3.9% higher than June 2010.
The world crude steel capacity utilisation ratio of the 64 countries in June 2011 was 82.8%, 1.2
percentage points higher than in May 2011. Compared to June 2010, the utilisation ratio in June
2011 increased by 2.5 percentage points.
16
The World Steel Association forecasts an increase in the apparent use of steel finished
products during 2010 and 2011 by 10.7% and 5.3% respectively. World steel also expects
the apparent steel use in 2010 to reach 1.241 billion tons compared to 1.121 billion tons for
2009,
and
this
shall
rise
to
1.306
billion
tons
in
2011.
The report indicated that the MENA region will see a rise in steel apparent use in 2010 to
reach 59 million tons, thus increasing by 8.9%, and to 62.5 million tons in 2011, i.e. an
increase by 5.9%. According to the report, it is predicted that Asia will stay on top in terms
of steel demand with a share of 66.2% of the world steel demand in 2010 and 65.5% in
2011. Meanwhile, some other regions will see improvement in apparent steel use during
2011 after the huge drop of 2009. The report estimated the increment in NAFTA steel
consumption in 2010 to be at 23.5% after a 37.4% drop. In CIS, the rise is projected to reach
11% compared to a 28.2% decline, and in EU27 there shall be a 13.7% rise as compared to a
35.2% depression. Meanwhile, the crude steel production in Arab companies during Q1
2010 increased by 21.58% compared to the same period of 2009. Most of this increase
comes from countries like Egypt (11.2%), Qatar (87.5%), Saudi Arabia 41.8% and Morocco
(25.2%).
17
World Steel Consumption 2010

Demand by Region
Region
EU (27)
Other Europe
CIS
NAFTA
Central & South America
Middle East & Africa
Asia & Oceania
World
Steel Demand, mt
139
29
45
108
44
74
833
1272
Demand by Product Shape
Steel shape
Flat products
Long products
Tube products
World
Steel Demand, mt
585
562
125
1272
Demand by Consuming End-Use Industry
18
Demand by Quality
Steel quality
Carbon steel
Engineering steel
Stainless steel
Tool steel
World
Steel Demand, mt
1209
38
24
~1
1272
Demand Forecast
Year
World steel demand, mt
19
2009
1125
2010
1272
2011
1359
2012
1441
2013
1491
Challenges and issues for the sector globally:

In the face of fluctuating demand and increasing raw material costs, steelmakers need to factor the
volatility into their business models. In doing so, they have to consider the following issues:
1. Scarcity of coking coal: Coking coal is a key raw material for the production of steel. There is a
significant supply-demand gap in the coking coal market and the shortage of this key material is a
real concern, particularly as it is unlikely to improve any time soon. As a result steel players are
looking to secure coal assets via joint ventures or acquisition, and they are also investing in new
technologies to reduce or eliminate coking coal from the steel-making process.
2. Raw material price volatility: With a scarcity of supply comes the obvious increase in prices,
which inturn creates a significant amount of margin squeeze for steel producers. In 2011, crude steel
production costs are likely to increase due to forecast price increases for iron ore, coking coal and
energy. As a result, companies are looking to control raw materials via backward integration
strategies; securing contracts through joint-venturing of associates and/or buying from a diverse
supplier base.
3. Increasing operational efficiency and cost effectiveness: To offset the margin squeeze,
steelmakers have begun focusing on increasing operational efficiencies in order to reduce operating
costs and improve the quality of output. Some operators are reducing operating costs by optimizing
the equipment that is being used, and adapting their maintenance strategies. Some companies are
also considering a shared services approach to capture the benefits of economies of scale for
common activities.
20
Crude Steel Production (Million Tonnes)

Rank
2
3
4
5
6
7
8
9
10
Country/Region
World
People's Republic of China
European Union
Japan
United States
Russia
India
South Korea
Germany
Ukraine
Brazil
Turkey
2007
1,351.3
494.9
209.7
120.2
98.1
72.4
53.5
51.5
48.6
42.8
33.8
25.8
2008
1326.5
500.3
198.0
118.7
91.4
68.5
57.8
53.6
45.8
37.3
33.7
26.8
2009
1,219.7
573.6
139.1
87.5
58.2
60.0
62.8
48.6
32.7
29.9
26.5
25.3
2010
1,413.6
626.7
172.9
109.6
80.6
67.0
66.8
58.5
43.8
33.6
32.8
29.0
Top steel producing Companies in the world

Ranking
(2010)
1
2
3
4
5
6
7
8
9
10
21
21
2010 2009 2008
2007
Company
Headquarters
98.2
52.9
37.0
36.5
35.4
35.0
31.1
23.2
23.2
23.2
13.6
116.4
31.1
28.6
20.2
31.1
35.7
34.0
22.9
26.5
13.9
Arcelor Mittal
Hebei Iron and Steel
Baosteel Group
Wuhan Iron and Steel
POSCO
Nippon Steel
JFE
Jiangsu Shagang
Shandong Iron and Steel Group
Tata Steel
Luxembourg
China
77.5
40.2
31.3
30.3
31.1
26.5
25.8
20.5
26.4
20.5
13.5
103.3
33.3
35.4
27.7
34.7
37.5
33.0
23.3
21.8
24.4
13.7
China
China
South Korea
Japan
Japan
China
China
India
Steel Authority of India Limited India
INDIAN STEEL INDUSTRY SCENARIO
22
2.2 INDIAN STEEL INDUSTRY SCENARIO

The year 2009 was not favourable for the steel industry as production dipped in response to weak
demand from enduser industries. However, amidst the turmoil in the global industry, China and
India stood apart with positive growth at the time when the world was reeling under demand
pressures. Even other BRIC countries Brazil and Russia didnt put up a good show with production
down y-o-y.
While people may disagree, downturn of a short duration, in any industry, is a necessary evil as it
forces the incumbents to refocus on long term strategy. Cost leadership is among the most
important drivers of sustained growth and profitability, especially for a commodity industry such as
steel. Further, cost management should not be taken as a onetime exercise to fight pressures on
profitability during the period of downturn. Raw material security and vertical integration are other
key aspects for sustained growth. In terms of raw material security, China is well placed as compared
to India due to its consistent efforts to acquire stakes in iron ore and coking coal mines in countries
such as Australia and Brazil. The year witnessed the emergence of China at the forefront of M&A
activity. China was involved in almost every second transaction of the top 20 steel related M&A
deals in 2009, as it scouted for steel and raw material assets worldwide. The country was involved in
only 5 of the top 20 transactions in 2008. Indian companies though have taken some steps in this
direction but they are not as aggressive as their Chinese counterparts.
Steel demand in India is expected to remain strong. The key drivers of growth would be significant
investments toward large scale public infrastructure development, including roads, ports, power
plants, airports, etc., as well as increasing levels of urbanization generating demand for housing,
automobiles and white goods.
The global economy is exhibiting strong signals of recovery and the Indian economy with a GDP
forecast of over 7% suggests that the worst is behind us and we are seeing a revival all around.
Indian steel consumption is growing and the country has maintained its spot as the fifth largest
crude steel producer in the world. In fact, Steel consumption in India jumped 7.7 percent in the nine
months to December, boosted by the governments plan to spend $8.95 billion this fiscal year to
build road and phone networks, power plants and irrigation facilities. The National Steel Policy has
envisaged steel production to reach 110 million tonnes by 2019-20. However, based on the
assessment of the current ongoing projects, both in Greenfield and Brownfield, the Ministry of Steel
has projected that the steel capacity in the county is likely to be around 124 million tonnes by 201112. Further, based on the status of MoUs signed by the private producers with the various state
governments; it is possible that Indias steel capacity could reach nearly 293 million tonnes by 2020
placing India clearly as the 2nd largest steel producer after China.
There is also an urgent need to ensure timely supply of essential raw materials particularly coking
coal to produce the coke to fuel The Great Indian Steel Dream for which an appropriate raw
material security plan has to be devised and implemented . It is also the time to review the role and
importance of China in global raw material and finished steel markets and look at the interplay
between two great giants of the steel industry in the years ahead. This is therefore the right time to
have the best strategies in place and discuss the scope and opportunities for the Indian Steel
23
Industry with the leading industry players from the country and abroad, stalwarts of the sector and
policy makers at Global Steel 2010, where this report is being released.
Production, consumption and growth of steel

The National Steel Policy 2005 had projected consumption to grow at 7% based on a GDP growth
rate of 7-7.5% and production of 110 million tonne by 2019-20. These estimates will be largely
exceeded and it has been assessed that, on a 'most likely scenario' basis, the crude steel production
capacity in the country by the year 2012-13 will be nearly 110 million tonne.
The table below shows the trend in production for sale, import, export and consumption of total
finished steel (alloy + non-alloy) in the country:
Total finished steel (alloy + non-alloy) ('000 tonne)
Year
Production for
sale
2005-06
46566
2006-07
52529
2007-08
56075
2008-09
57164
2009-10
60892
Apr-Dec 10-11*
47296
Source: JPC; * =Provisional
24
Import
Export
Consumption
4305
4927
7029
5841
7296
5359
4801
5242
5077
4437
3235
2462
41433
46783
52125
52351
57675
44275
Crude steel production has shown a sustained rise since 2004-05 along with capacity. Data on crude
steel production, capacity and capacity utilization are given in the table below:
Year
Crude steel
Production
('000 tonne)
Capacity
('000 tonne)
Capacity
Utilisation (%)
2005-06
51171
46460
2006-07
56843
50817
2007-08
59845
53857
2008-09
66343
58437
2009-10
72963
64875
Apr-Dec 2010-11*
56597**
50594
Source: JPC; *=Provisional; ** 2.5 million tonne capacity added during April-December 2010
91
89
91
88
89
89
22
Annual Report 2010-11

The growth was driven by capacity expansion from 47.99 million tonne per annum (MTPA) in 200405 to 75.463 MTPA in 2010-11 (up to December 2010). Crude steel production grew at a CAGR of 8.4
per cent during the five years, 2005-06 to 2009-10. Production for sale of total finished steel at 60.89
million tonne during 2009-10 as against 46.566 million tonne in 2005-06. With growth in production
for sale lagging behind consumption growth, India has turned into a net importer of finished steel in
2007-08. Exports have also declined to ensure greater domestic availability.
The above crude steel performance has been contributed largely by the strong trends in growth of
the electric route of steel making, particularly the induction furnace route, which accounted for 31
per cent of total crude steel production in the country during 2009-10 and has emerged as a key
driver of crude steel production.
The process route-wise production of crude steel in the country during 2005-06, 2009-10 and AprilDecember 2010-11 (provisional) are shown in the table below and indicate the emergence of the
electric route of production compared to the oxygen route:
Crude steel production by Process Route
Basic Oxygen Furnace (BOF)
Electric Arc Furnace (EAF)
Induction Furnace (IF)
Total
Source: JPC;*=Provisional
2005-06
52
18
30
100
Percentage share (%)

2009-10
2010-11*
45
47
24
26
31
27
100
100
India is also a leading producer of sponge iron with a host of coal based units, located in the mineralrich states of the country. Over the years, the coal based route has emerged as a key contributor to
overall production; its share has increased from 69% in 2005-06 to 70% in 2009-10. Capacity in
sponge iron making has also increased over the years and currently stands at 32 million tonne.
25
Global ranking of Indian steel

Global crude steel production reached 1414 million tonne in calendar year 2010, a growth of 15 per
cent over 2009. China was the largest crude steel producer in the world with production reaching
626.56 million tonne, a growth of 9.2 per cent over 2009. India once again emerged as the 5th
largest producer in 2010 and recorded a growth of 11.3 per cent as compared to 2009. India also
emerged as the largest sponge iron producing country in the world in 2010, a rank it has held on
since 2002. If proposed expansions plans are implemented as per schedule, India may become the
second largest crude steel producer in the world by 2015-16.
World crude steel production in 2010*
Rank
Country
Production (million tonne)
1
China
626.56
2
Japan
109.60
3
USA
80.59
4
Russia
67.00
5
India
66.80
6
South Korea
58.45
7
Germany
43.82
8
Ukraine
33.56
9
Brazil
32.82
10
Turkey
29.00
Source: World Steel Association; *=Provisional
26
Present growth scenario and future outlook

India was the 5th largest producer of crude steel in the world in 2010, based on rankings released by
World Steel Association. Domestic crude steel production grew at a compounded annual growth rate
of 8.4 per cent during 2005-06 to 2009-10. This growth was driven by both capacity expansion (from
47.99 million tonne in 2004-05 to 72.96 million tonne in 2009-10) and improved capacity utilisation.
India, the world's largest producer of direct reduced iron (DRI) or sponge iron, is also expected to
maintain its lead in the near future. Sponge iron production grew at a CAGR of 11 per cent to reach a
level of 20.74 million tonne in 2009-10 compared to 14.83 million tonne in 2005-06. India is
expected to become the second largest producer of steel in the world by 2015-16, provided all
requirements for fresh capacity creation are met.
Indian steel industry has just come out of the slowdown that affected its performance during 200809. Domestically, 2010 ended on a relatively better and encouraging note, with CSO reporting an
overall improvement of economic situation through its GDP data, which showed a robust 8.9 per
cent growth during Apr-Sept 2010-11. IIP too had registered a strong 10.2 per cent growth during
Apr-Sept. 2010-11, further bolstering the idea that the demand side is back on stable footing. For
steel, this is of key importance and the growth rates registered for leading end-use segments like
manufacturing, consumer durables, construction, the stable growth of the service sector and
agriculture sector spell good news. April-December 2010 provisional data released by JPC indicates a
8 per cent rise in consumption of total finished steel. Globally also there are signs of improvement in
economic conditions and firming up of demand and prices.
27
Trends in production, private/public sector

Traditionally, Indian steel industry has been classified into Main Producers (SAIL plants, Tata Steel
and Vizag Steel/ RINL), Major Producers (plants with crude steel making capacity above 0.5 million
tonne - Essar Steel, JSW Steel, Jindal Steel & Power and Ispat Industries) and Other Producers. The
latter comprises of numerous steel making plants producing crude steel/finished steel (long
product/flat product)/ pig iron/ sponge iron and are spread across the different states of the
country.
The following table highlights the total as also the contribution of the private and public sector in
crude steel production in the country:
Indian Crude Steel production

2005-06 2006-07 2007-08
2008-09
Public Sector
Private Sector
Total Production
% share of
Public Sector
16.964
29.496
46.460
36.5
17.003
33.814
50.817
33.5
17.091
36.766
53.857
32
16.372
42.065
58.437
28
(in million tonne)

2009-10 * 2010-11*
(April-Dec)
16.714
12.579
48.161
38.015
64.875
50.594
26
25
Source: JPC; *=Provisional
INDIAN STEEL COMPANIES AND CAPACITY (Million Ton)

Company
Existing Capacity
Total capacity Total capacity
capacity additions by expected by
proposed by
2011-12
201112
2019
SAIL
RINL
TATA
ESSAR STEEL
JSW
JSPL
ISPAT
POSCO
ARCELOR MITTAL
BHUSHAN POWER & STEEL
12.5
2.9
6.8
4.6
6.6
2.4
3
BHUSHAN STEEL
OTHERS & SECONDARY
2.2
21.9
28
7.7
3.4
3.0
5.4
3.2
1.2
.9
1.5
2.8
9.1
20.2
6.3
9.8
10.0
9.8
3.6
4.2
1.5
23.1
16.3
22.8
16.0
29.8
25.8
4.2
12.0
24.0
1.5
5.0
31.0
5.0
31.0
BRIEF PROFILE OF SAIL
29
2.3 Steel Authority of India Limited - A Maharatna

Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a fully
integrated iron and steel maker, producing both basic and special steels for domestic construction,
engineering, power, railway, automotive and defence industries and for sale in export markets. SAIL
is also among the five Maharatnas of the country's Central Public Sector Enterprises.
SAIL manufactures and sells a broad range of steel products, including hot and cold rolled sheets and
coils, galvanised sheets, electrical sheets, structurals, railway products, plates, bars and rods,
stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and three
special steel plants, located principally in the eastern and central regions of India and situated close
to domestic sources of raw materials, including the Company's iron ore, limestone and dolomite
mines. The company has the distinction of being Indias second largest producer of iron ore and of
having the countrys second largest mines network. This gives SAIL a competitive edge in terms of
captive availability of iron ore, limestone, and dolomite which are inputs for steel making.
SAIL's wide range of long and flat steel products is much in demand in the domestic as well as the
international market. This vital responsibility is carried out by SAIL's own Central Marketing
Organisation (CMO) that transacts business through its network of 37 Branch Sales Offices spread
across the four regions, 25 Departmental Warehouses, 42 Consignment Agents and 27 Customer
Contact Offices. CMOs domestic marketing effort is supplemented by its ever widening network of
rural dealers who meet the demands of the smallest customers in the remotest corners of the
country. With the total number of dealers over 2000, SAIL's wide marketing spread ensures
availability of quality steel in virtually all the districts of the country.
With technical and managerial expertise and know-how in steel making gained over four decades,
SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy to clients worldwide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at Ranchi
which helps to produce quality steel and develop new technologies for the steel industry. Besides,
SAIL has its own in-house Centre for Engineering and Technology (CET), Management Training
Institute (MTI) and Safety Organisation at Ranchi. Our captive mines are under the control of the
Raw Materials Division in Kolkata. The Environment Management Division and Growth Division of
SAIL operate from their headquarters in Kolkata. Almost all our plants and major units are ISO
Certified. SAIL traces its origin to the formative years of an emerging nation - India. After
independence the builders of modern India worked with a vision - to lay the infrastructure for rapid
industrialisation of the country. The steel sector was to propel the economic growth. Hindustan Steel
Private Limited was set up on January 19, 1954.
VISION
To be a respected world Class Corporation and the leader in Indian steel business in quality,
productivity, profitability and customer satisfaction.
30
CREDO
We build lasting relationships with customers based on trust and mutual benefit.
We uphold highest ethical standards in conduct of our business.
We create and nurture a culture that supports flexibility, learning and is proactive to change.
We chart a challenging career for employees with opportunities for advancement and
rewards.
We value the opportunity and responsibility to make a meaningful difference in people's

lives.
2.4 PRODUCTS OF SAIL

LONG PRODUCTS
1.Structurals
2.Crane Rails
3. Z-Section Centre Sill

4. Z-Type Sheet-piling
Section
5. M S Arch
6. Bars, Rods & Rebars:
SAIL TMT
7. Wire Rods
FLAT PRODUCTS
1. HR Coils, Sheets &
Skelp
2. Plates
3. CR Coils & Sheets
4. GP Sheets & Coils, GC

Sheets:
SAIL JYOTI
Tin Plates
Electrical Steel
5. PIPES
1. Rails
2. Wheels, Axles &
Wheel Sets
OTHER
PRODUCTS
SEMIS
RAILWAY PRODUCTS
1.Blooms
2.Billets
3.Slabs
Pig Iron
2.5 PLANTS OF SAIL

SAIL Integrated Steel Plants
1. Rourkela Steel Plant (RSP) in Orissa set up with German collaboration (The first integrated
steel plant in the Public Sector in India, 1959)
2. Bhilai Steel Plant (BSP) in Chhattisgarh set up with Soviet collaboration (1959)
3. Durgapur Steel Plant (DSP) at Durgapur, West Bengal set up with British collaboration (1965)
4. Bokaro Steel Plant (BSL) in Jharkhand (1965) set up with Soviet collaboration (The Plant is
hailed as the countrys first Swadeshi steel plant, built with maximum indigenous content in
terms of equipment, material and know-how)
5. IISCO Steel Plant (ISP) at Burnpur, West Bengal
31
Special Steel Plants

1. Steel Authority of India Limited (SAIL), Kanpur, Uttar Pradesh
2. Alloy Steels Plants (ASP), Durgapur, West Bengal
3. Salem Steel Plant (SSP), Tamil Nadu
4. Visvesvaraya Iron and Steel Limited (VISL), at Bhadravathi, Karnataka
Subsidiaries
1. Maharashtra Elektro-smelt Limited (MEL) in Maharashtra
2.6 MAIN ACTIVITIES

A. It produces both basic and special steels for domestic construction, engineering, power,
railway, automotive and defence industries and for sale in export markets.
B. SAIL manufactures and sells a broad range of steel products, including
1.
2.
3.
4.
5.
6.
7.
8.
hot and cold rolled sheets and coils,

galvanized sheets, electrical sheets,
structurals,
railway products,
plates,
bars and
rods,
stainless steel and other alloy steels
C. SAIL produces iron and steel at five integrated plants and three special steel plants,
located principally in the eastern and central regions of India and situated close to domestic
sources of raw materials, including the Company's iron ore, limestone and dolomite mines.
D. SAIL's wide range of long and flat steel products is much in demand in the domestic as
well as the international market. This vital responsibility is carried out by SAIL's own Central
Marketing Organisation (CMO) that transacts business thorough International trade
Division.
E. SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000 accredited unit
of CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated
steel plants.
F. With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and consultancy
to clients world-wide.
32
G. SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel
industry.
2.7 OWNERSHIP AND MANAGEMENT

Steel Authority of India Limited is a public sector Undertaking. The Government of India owns about
86% of SAIL's equity and retains voting control of the Company. However, SAIL, by virtue of its
Maharatna status, enjoys significant operational and financial autonomy
SHARE HOLDING PATTERN
AS ON 31ST MARCH ' 2011
Category
GOI
Financial Institutions
Banks
Mutual Funds
FIIs
GDRs
Cos. (incl Soc & Tr)
Individuals (incl
employees)
Total
33
Equity Share
No of
Amount in
% of
holders
Holders
Rs./Cr
Equity
3544690285
1
3544.69
85.82
211213818
33
211.21
5.11
76138307
51
76.14
1.84
24511749
102
24.51
0.59
175759727
282
175.76
4.26
614245
2
0.61
0.02
21426619
3070
21.43
0.52
76045795
338069
76.05
1.84
4130400545
341610
4130.40
100.00
2.8 INTERNATIONAL TRADE DIVISIONS

International Trade Division (ITD) of SAIL at New Delhi an ISO 9001:2000 accredited unit of
CMO, undertakes exports of Mild Steel products and Pig Iron from SAILs five integrated
steel plants. Ever ready to meet the exacting demands of its global customers, ITD maintains
a close liaison with customers and the production units to cater to the customized
requirements of its customers both in terms of quality and sizes. Its major products are also
covered by stringent certifications such as CE marking, TUV and U mark required by
sophisticated end uses in European markets.
ITD has. The critical function of ensuring efficient shipment of export materials is performed
by Transport & Shipping Division (T&S) Headquartered at Kolkata. T&S has branch offices at
Haldia, Paradip and Vizag ports.
ITD exports steel products mentioned below via its joint venture service centre
L. Rails,
M. Structurals,
N. Merchant Products,
O. Wire Rods,
P. Re-bars,
Q. Plate Mill Plates,
R. Hot Rolled Coils,
S. Hot Rolled Plates / Sheets,
T. Cold Rolled steels,
U. Cold Rolled Non Oriented (CRNO) coils,
V. Chequered Plates,
W. Slabs, Billets and Pig Iron.
Steel Authority of India Limited has successfully implemented its Export potential in the
following markets:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
Japan,
P.R. of China,
Korea,
Taiwan,
Vietnam,
Philippines,
Singapore,
Malaysia, Nepal, Bangladesh
Thailand, Sri Lanka
Indonesia,
Australia,
Europe
34
2.9 SAIL CORPORATE PLAN 2012

SAILs newly announced Corporate Plan 2012 sets out the blueprint for this growth plan.
According to an official of the company, a major factor that prompted formulation of
Corporate Plan 2012 was the continual improvement in operating efficiency achieved by
the company. As pointed out by the Chairman in many forums, exceeding rated shop
capacity has become more of a norm rather than exception in the SAIL plants, he says.
Also, the culture of cost reduction and improvement in business processes has helped the
company build up its internal resources which will contribute to achievement of the growth
plan. For realistic accomplishment of targets set, the plan has been split into two stages
Stage 1 pertaining to the period up to 2006-07 and Stage 2 up to 2011-12.
The plan defines the following key strategic goals for SAIL:
To continue in the business of steel and steel-related activities
To enhance market share in growth segments
To improve profits by cost reduction and high value added products
To achieve excellence in quality across the value chain
To secure availability of key raw materials, and alleviate infrastructure bottlenecks which
may constrain long-term growth
To build customer-centric processes, systems, structure and procedures A significant
feature of the plan is that it covers the 11th Five-year Plan period.
PRODUCTION
Corporate Plan 2012 envisages production of hot metal from the integrated steel plants of
SAIL reaching an aggregate level of about 20 MT per annum by 2011-12 against the current
level of 13 MT. This would be achieved through optimal utilization of assets coupled with
marginal capacity expansion. Plant-wise break-up of hot metal production would be as
follows: The envisaged growth in volumes is to be achieved by:
Realisation of full potential of existing assets
Do-bottlenecking
Linked facilities for value addition
Capacity enhancement in growth segments
35
Based on the above, crude steel production by SAIL is planned to reach a level of 18.7
million tonnes per annum (MTPA) by 2012 from the current level of 11.83 MT, leading to
saleable steel production of 17.38 MTPA against the level of 10.73 MT achieved in 2003-04.
In view of emerging market requirements, SAIL has also planned to raise its output of
finished steel to 16.6 MTPA by 2011-12 from the current level of 8.6 MT, and reduce
generation of semi-finished steel from 20% of saleable steel to 5%. This will enable inclusion
of more value-added products in the companys product basket.
Broadly, this would enable SAIL to achieve 30% market share in flat products and 23% in
longs by 2011-12.
INVESTMENT
SAIL has estimated that the measures to be taken to achieve the targeted levels of
growth and sustain higher levels of cost and quality competitiveness will require investment
in the region of Rs.25, 000 crore by 2011-12. The immediate priority schemes, to be
taken/completed by 2006-07, have been estimated to be around Rs.4, 300 crore.
The capital expenditure envisaged will be financed mainly through internal accruals, and
will be supplemented by market borrowing if the need arises. Care will be taken to ensure
that the companys debt-equity ratio attains, and is maintained at, a level of 1:1. The plan
for capital expenditure covers up gradation/modernization of some existing assets as well as
installation of some new facilities. The areas broadly identified for investment pertain to:
Development of iron ore mines
Rebuilding Coke Oven Batteries as BSP, DSP and RSP
Revamping of iron & steel making facilities at BSP, DSP and BSL
Installation of one blast furnace at RSP
Installation of auxiliary fuel injection systems in all blast furnaces in a phased manner
Installation of new finished mills Among new finished mills planned to be set up are: BSP:
Thin slab casting/inline Hot Strip Mill (1.1 MT), Bar & Rod Mill (1MT), Pipe Plant (0.2 MT)
DSP: Bar & Rod Mill (1.4 MT), Structural Mill (0.4 MT) RSP: Plate Mill (0.7 MT), CRNO Mill
(0.075 MT) BSL: Hot Strip Mill (2.5 MT), CRM Line (0.6 MT)
RAW MATERIALS
The growth plan and achievement of quality/cost competitiveness of SAIL to a significant
extent will hinge on the availability, quality and cost of key inputs like coal and iron ore.
36
SAIL has the largest iron ore mining operations in India. To enable production of around 20
MT of hot metal by 2012, substantial development of mines to increase the iron ore
production to a level of around 33 MT, including 6-7 MT of lump ore, will have to be taken
up, sources said. To meet the requirement, SAIL has planned to adopt following strategies:
Development new blocks/mines
Increased production from existing mines to their potential
Improving the quality of iron ore by suitable beneficiation
Achieving operating efficiencies by economic scale of operations
IMPLEMENTATION
Corporate Plan 2012 has considered the following major risk factors in achievement of the
targeted growth have been identified as
Declining global steel demand and prices
Constraints in availability, and cost of critical raw material like coking coal, iron ore, etc.
Infrastructure constraints, viz. ports, railways, etc.
These factors will be reviewed proactively and timely interventions will be ensured. Steel
being a universal intermediary, its demand is driven by economic growth and the expansion
trajectory of the industrial sector. The growth trajectory (reflected in terms of percentage of
GDP growth) is essentially a range based on macro-economic parameters, government
policies and global economic trends. While drawing up Corporate Plan 2012, conservative
market growth projections have been considered. However, while the growth trends and
macro indicator present opportunities for the companys higher growth potential; major risk
factors have also been taken into consideration like decline in global steel demand and
prices, non-availability/cost of major input materials like coal, etc. Therefore, in any case,
SAILs plans may have to be revised from time to time, depending on the market growth,
competition, international situation, change in countrys policies, resources availability, etc.
JOINT VENTURES AND MOU

SAIL has promoted joint ventures in different areas ranging from power plants to ecommerce:
A. NTPC SAIL Power Company Pvt. Ltd (NSPCL)
A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power
Corporation Ltd. (NTPC Ltd.); manages the captive power plants at Rourkela, Durgapur and Bhilai
37
with a combined capacity of 314 megawatts (MW). It has installed additional capacity by
implementation of 500 MW (2 x 250 MW Units) power plant at Bhilai. The commercial generation of
1st Unit has commenced in April2009 and the 2nd Unit in October 2009
B. Bokaro Power Supply Company Pvt. Limited (BPSCL)
This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January 2002
is managing the 302-MW power generating station and 660 tonnes per hour steam generation
facilities at Bokaro Steel Plant. BPSCL has proposed to expand its capacity by installing 2x250 MW
coal based thermal unit at Bokaro. In addition, construction activities are underway for installation
of 9th Boiler (300T/Hr) & 36 MW Back Pressure Turbo Generator (BPTG) project at Bokaro.
C. Mjunction Services Limited
A 50:50 joint venture between SAIL and Tata Steel formed in 2001. This company promotes ecommerce activities in steel and related areas. Newly added services include e-Assets sales, Events &
Conferences, Coal Sales & Logistics, Publications etc...
D. SAIL-Bansal Service Centre Ltd.
SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service centre
at Bokaro with the objective of adding value to steel.
E. SAIL&MOIL Ferro Alloys (Pvt.) Limited
SAIL has incorporated a joint venture company with M/s Manganese Ore (India) Ltd on 50:50 basis
to produce Ferro-manganese and silico-manganese required for production of steel:
MOU
A. POSCO to establish strategic alliance for cooperation in a wide range of business &
commercial interest areas. Pursuant to this, another MoU has been signed for joint venture
initiative in the area of (a) manufacture & commercialization of CRNO; & (b) Exploration of
upstream & downstream opportunities in utilizing FINEX technology by both the companies.
B. Rashtriya Ispat Nigam Ltd. (RINL) - To jointly explore and develop low silica Limestone mines
in the Sultanate of Oman. .
C. Shipping Corporation of India Ltd (SCI) To set up a joint venture which will provide
shipping-related services to SAIL for imported coking coal and also participate in worldwide
dry bulk shipping trade.
D. Government of Kerala (GOK) To revive the existing facilities at Steel Complex Ltd in Calicut
owned by the state government, and also set up, develop and manage a TMT rolling mill of
65000 MT capacity along with balancing facilities and auxiliaries.
E. Larsen & Toubro Ltd (L&T) To jointly set up, develop, manage and own
captive/independent power plant(s) at suitable location/s to meet future power
requirements of SAIL including opportunities to own captive thermal coal blocks to cater to
the power plants requirements..
38
FY 11 FINANCIAL REPORT
NET SALES OF SAIL (RS CRORE)
EARNING BEFORE INTEREST, DEPRECIATION AND TAX (Rs Cr.)
39
EARNING PER SHARE (RS)
PRODUCT MIX: PRODUCTION FIVE INTEGRATED STEEL PLANTS
40
CATEGORIES WISE SALES
41
3.EXPORT POTENTIAL OF BILLETS WITH FOCUS ON MENA

3.1 MARKET INTRODUCTION
MENA (MIDDLE EAST AND NORTH AFRICA)
The term MENA, for "Middle East and North Africa", is an acronym often used in academic and
business writing. The term generally covers an extensive region, extending from Morocco in
northwest Africa to Iran in southwest Asia. It generally includes all the Arab Middle East and North
Africa countries.
Gulf Cooperation Council (GCC), officially Cooperation Council for the Arab States of the Gulf,
organization (est. 1981) promoting stability and economic cooperation among Persian Gulf nations.
Its members are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. In 1991
the GCC countries joined with Egypt and Syria to create a regional peacekeeping force. An aid fund
was also established to promote development in Arab states; it was used to help liberate Kuwait in
1991. In 2003 GCC members eliminated tariffs on trade between member nations and established
common external tariffs. They have agreed to establish a broader economic union (including a single
market and currency; Oman and United Arab Emirates have opted out); a common market was
established in 2008.
MAJOR STEEL COMPANIES IN THE MENA REGION

1. EZDK - (EGYPT)
EZDK (Al-Ezz Dekheila Steel Co.) is the largest steel company in Egypt and the Middle East. It lies in
Dekheila, West of Alexandria, the second biggest city of Egypt and its main port.
2- Emirates Steel Industries (ESI)
Emirates Steel Industries (ESI) is a wholly-owned government factory located in the Industrial City of
Abu Dhabi (ICAD). It uses rolling mill technology to produce rebar for the construction industry.
Established in 2001, the mill currently operates at its full design capacity of 600,000 tonnes of rebar
per year. It sells 100% of its products within the UAE.ESI has achieved Quality System Certification
from the UK Certification Authority and produces rebar conforming to BS4449/97 Grade 60 in sizes
from 10m to 32mm, in lengths of 12m. The firm is on a major expansion push to increase its rolling
capacity and establish the factory as a fully integrated plant.
3- Qatar Steel (QASCO)

Qatar Steel was formed in 1974 as one of the first integrated steel plants in the Arabian Gulf.
Commercial production began in 1978 and the company became wholly owned by Industries Qatar
in 2003. Qatar Steel now has a 707,000m facility located in Mesaieed Industrial City, which includes
a continuous casting plant and rolling mills with the latest automated technology. An adjacent
375,000m plot is reserved for future developments. The firm also operates a UAE-based subsidiary
to meet the growing demand for high-quality steel wire-rod products within the GCC. It operates
two primary facilities at its 60,000m Jebel Ali Free Zone site: an upgraded wire rod mill with an
installed annual capacity of 240,000 metric tonnes and a rebar mill.
42
4- RAK Steel
RAK Steel is a joint venture between Ras Al Khaimah Investment Authority and Middle East Traders
group. The second largest rebar manufacturing mill in the UAE, it has a design capacity of 500,000
tonnes per year.
RAK Steel rebar are made from pure steel billets, hot rolled in a highly automatic rolling mill and
subjected to an online thermo-mechanical treatment called Quenching and Self Tempering (QST).
The mill produces: 8mm, 10mm, 12mm, 14mm, 16mm, 20mm, 25mm and 32mm diameter steel
deformed reinforcement bars (Rebars) to international British and American standards according to
client requirements. The firm is aiming to increase its capacity by 50% by the end of this year to
cater to increased local demand.
5- Sabic Metals
Sabic is one of the largest and most profitable non-oil companies across the Middle East and one of
the worlds five largest petrochemicals manufacturers. It is a leading steel producer in the Middle
East, and the firms metals business has played a vital role in the construction, development and
industrialisation of the region. A number of flat and long steel products are manufactured at its
production facilities. Sabic is a public company with its headquarters in Riyadh. The Saudi Arabian
government owns 70% of its shares, while the remaining 30% are held by private investors across
the GCC.
6- United Gulf Steel

United Gulf Steel is one of the largest producers of medium section steel products in the GCC. It has
a 450,000 tonnes per annum capacity facility located at Jubail Industrial City, Saudi Arabia. An ISO
9001:2000 certified companies; it manufactures medium section structural steel products. The firms
product range includes a wide variety of structural steel such as IPE beams; UPE channels; equal
angles; flat, square and round bars in various sizes.
7- Zamil Steel
Zamil Steel Structural Steel Division is one of the largest steel fabricators in the GCC. The firm
fabricates steel structures and plate works for a number of applications including high-rise buildings,
with products including structural steel, pipe racks, ducting and equipment support structures. Saudi
Arabia-based Zamil has achieved ISO 9001:2000 certification for its quality systems, plus ISO 14001 &
OHSAS 18001 certifications, which have resulted in the improvements of process efficiencies and
workforce safety. The Zamil Structural Steel Division is also certified by the American Society of
Mechanical Engineers.
8. HADEED SABIC (SAUDI ARABIA)
9. LISCO (LIBYA)
10. SONASID (MOROCCO)
11. ARCELOR MITTAL ANNABA (ALGERIA)
43
3.3 MENA STEEL SCENARIO
44
Analysis:
1. MENA steel crude production has risen over the years due to increase in production
capacity and setting up of new steel mills.
2. Although the steel production has risen but the domestic production is far below the
domestic demand for the steel.
3. Steel mills export to MENA region shows that there is at least a demand of 40 million
tons.
3.4 PRODUCT INFORMATION: STEEL BILLET
Raw steel cannot be of use while in its pure form, thus it has to be cast into shape. The freshly made
steel, which is still in the form of a metal bar or rectangle, is called steel billet. Steel billets became
popular in the early 1800s, just after the British colonization of the United States ended and
American entrepreneurs began to manufacture brass and bronze billet, which later became one of
the fast-rising industries in the new country. Copper and iron were almost not to be found in the
United States back then, as the British transported all American copper to Britain for further molding
and processing.
Steel billets have distinct characteristics as compared with already furnished steel bars and products.
Billets have a specific grain structure, which enables the metal to be processed more intricately.
Steel billets are also known for their malleability and ductility, especially when exposed to varying
temperatures during shaping and molding.
Billets or ingots are not of practical use until they have been formed into more functional shapes
and sizes. While they have already been put in the furnace, they still require a series of shaping and
molding procedures such as hot and cold working, milling and cutting before they are sold in
hardware stores, or used for different applications. The unformed billets, however, can be used in
striking currency such as coins and as reserves, similar to gold bars. Steel billets are considered fresh
and raw, and they must undergo a series of manufacturing processes before they can be used for
various purposes. Billets are made by means of freezing molten liquid, and are later exposed to
extremely low temperatures in order to allow the metal to take shape and solidify in chemical
structure. The temperature manipulates the metal's physical properties, and tones its strength and
durability. The subsequent processes provide the metal's curved mold design so that it can fit the
45
allotted space provided by other machines, which complete the finishing procedures
Steel billets result from the second stage of the steel production process. They are hot-rolled or
forged from an ingot or strand cast. Smaller and longer than a bloom, billets are usually a square
cross section less than 36 square inches. They are used for the manufacture of all 'long' steel
products such as bars, rods, pipes, tubes, wire and wire products.
3.5 MANUFACTURING PROCESS
1. Ladle
2. Stopper
3. Tundish
4. Shroud
5. Mold
6. Roll support
7. Turning zone
8. Shroud
9. Bath level
10. Meniscus
11. Withdrawal unit
12. Slab
46
A.
B.
C.
D.
E.
Liquid metal
Solidified metal
Slag
Water-cooled copper plates
Refractory material
Molten metal (known as hot metal in industry) is tapped into the ladle from furnaces. After
undergoing any ladle treatments, such as alloying and degassing, and arriving at the correct
temperature, the ladle is transported to the top of the casting machine. Usually, the ladle sits in a
slot on a rotating turret at the casting machine; one ladle is 'on cast' (feeding the casting machine)
while the other is made ready, and is switched to the casting position once the first ladle is empty.
From the ladle, the hot metal is transferred via a refractory shroud (pipe) to a holding bath called
a tundish. The tundish allows a reservoir of metal to feed the casting machine while ladles are
switched, thus acting as a buffer of hot metal, as well as smoothing out flow, regulating metal feed
to the molds and cleaning the metal.
Metal is drained from the tundish through another shroud into the top of an open-base
copper mold. The depth of the mold can range from 0.5 to 2 metres (20 to 79 in), depending on the
casting speed and section size. The mold is water-cooled to solidify the hot metal directly in contact
with it; this is the primary cooling process. It also oscillates vertically (or in a near vertical curved
path) to prevent the metal sticking to the mold walls. A lubricant can also be added to the metal in
the mold to prevent sticking, and to trap any slag particlesincluding oxide particles or scalethat
may still be present in the metal and bring them to the top of the pool to form a floating layer of
slag. Often, the shroud is set so the hot metal exits it below the surface of the slag layer in the mold
and is thus called a submerged entry nozzle (SEN). In some cases, shrouds may not be used between
tundish and mold; in this case, interchangeable metering nozzles in the base of the tundish direct
47
the metal into the moulds. Some continuous casting layouts feed several molds from the same
tundish.
In the mold, a thin shell of metal next to the mold walls solidifies before the middle section, now
called a strand, exits the base of the mold into a spray-chamber; the bulk of metal within the walls of
the strand is still molten. The strand is immediately supported by closely spaced, water cooled
rollers; these act to support the walls of the strand against the ferrostatic pressure
(compare hydrostatic pressure) of the still-solidifying liquid within the strand. To increase the rate of
solidification, the strand is also sprayed with large amounts of water as it passes through the spraychamber; this is the secondary cooling process. Final solidification of the strand may take place after
the strand has exited the spray-chamber.
It is here that the design of continuous casting machines may vary. This describes a 'curved apron'
casting machine; vertical configurations are also used. In a curved apron casting machine, the strand
exits the mold vertically (or on a near vertical curved path) and as it travels through the spraychamber, the rollers gradually curve the strand towards the horizontal. In a vertical casting machine,
the strand stays vertical as it passes through the spray-chamber. Molds in a curved apron casting
machine can be straight or curved, depending on the basic design of the machine.
In a true "Horizontal Casting Machine", the mold axis is horizontal and the flow of steel is horizontal
from liquid to thin shell to solid (no bending). In this type of machine, either strand oscillation or
mold oscillation is used to prevent sticking in the mold.
After exiting the spray-chamber, the strand passes through straightening rolls (if cast on other than a
vertical machine) and withdrawal rolls. There may be a hot rolling stand after withdrawal, in order to
take advantage of the metal's hot condition to pre-shape the final strand. Finally, the strand is cut
into predetermined lengths by mechanical shears or by travelling oxyacetylene torches, is marked
for identification and either taken to a stockpile or the next forming process.
In many cases the strand may continue through additional rollers and other mechanisms which
might flatten roll or extrude the metal into its final shape.
48
3.6 WORLD STEEL BILLET:SCENARIO

The CIS organization was founded on 8 December 1991 by the Republic of Belarus, the Russian
Federation, and Ukraine, when the leaders of the three countries met in the Belovezhskaya
Pushcha Natural Reserve, about 50 km (30 miles) north of Brest in Belarus and signed a Creation
Agreement on the dissolution of the Soviet Union and the creation of CIS as a successor entity to
the USSR. At the same time they announced that the new alliance would be open to all republics of
the former Soviet Union, as well as other nations sharing the same goals. The CIS charter stated that
all the members were sovereign and independent nations and thereby effectively abolished
the Soviet Union. On 21 December 1991, the leaders of eight additional Soviet Republics
Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova,Turkmenistan, Tajikistan, and Uzbekistan
signed the Alma-Ata Protocol and joined the CIS, thus bringing the number of participating countries
to 11.
STEEL BILLET PRODUCTION (000 MT)

2006-07
2007-08
2008-09
EU
9492
8209
6875
C.I.S.
46895
46568
40353
North America
591
3446
2969
South America
2983
2894
2369
Africa
221
221
187
Asia
30094
33270
35944
Oceania
59
62
65
World
93381
94705
88794
2009-10
3922
25607
1745
1139
60
33353
57
65898
Steel Billet Production (000 MT)

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2006-07
2007-08
2008-09
2009-10
EU
C.I.S.
North
South
America America
Africa
Asia
Oceania
(Source: Steel Statistical Year Book 2010)
49
Analysis:
1. Continent wise Asia has emerged the largest steel billet producer.
2. Region wise also Asia has overtaken CIS in billet production.
3. CIS was the largest steel billet producer in 2007,08 and 09 but Asia is now the
largest billet producer with 33353 thousand MT followed by CIS with 25607
thousand MT.
4. Increase in the cost of manufacturing due to increased prices of coal and
coking coke has resulted in fall in output of CIS Steel makers.
5. The demand has also fallen due to uprising in Middle East a major market for
CIS producers.
50
WORLD STEEL BILLET PRODUCTION (000 MT)

2006-07 2007-08
2008-09 2009-10
World
93381
94705
88794
65898
WORLD STEEL BILLET PRODUCTION (000 MT)

100000
80000
60000
40000
20000
0
2006-07
2007-08
2008-09
2009-10

Analysis:
1. The world steel billet production has shown a declining trend over past three
year.
2. The recession of 2008-09 and then increase in the price of raw material has
increased the prices of billets and at increased prices the demand is low and
producing Long and Flat product has become more profitable for CIS
producers (one of the major producers of steel billets).
3. CIS producers are cutting production due to low profit margin on billets.
4. Low construction in Middle East is also a reason for fall in demand for CIS
billet, Middle East is the largest importer of CIS billet.
Comparison of Asia and CIS in Steel Billets Production

100000
80000
60000
C.I.S.
40000
Asia
20000
World
0
2006-07
51
2007-08
2008-09
2009-10

2006-07 2007-08 2008-09 2009-10
30094
33270
35944
33353
46895
46568
40353
25607
93381
94705
88794
65898
Asia
C.I.S.
World
CIS Share (in %)

50.219 49.17164 45.44564 38.85854
Asia Share (in %) 32.22711 35.13014 40.48021 50.61307
Analysis:
1. From the graph it can be seen that the CIS billet production and world billet
production has a positive correlation since CIS was the world largest billet
producer.
2. From table it can be seen the share of CIS has been falling continuously and
Share of Asia has been rising.
3. Asia share is rising due to increased production capacity of China and Indian
steel mills and high domestic demand.
EXPORTS OF BILLETS AND SEMIS (000' MT)

2006-07
2007-08
2008-09
2009-10
EU
13359
15684
15075
9060
C.I.S.
29289
28272
30367
26133
North America
2958
3897
4739
2478
South America
6384
5689
5943
4994
Africa
301
220
143
462
Middle East
22
27
56
48
15610
13844
9727
8466
16
33
68401
67928
68719
54304
Asia
Oceania
World
52

70000
60000
50000
40000
2006-07
30000
2007-08
20000
2008-09
10000
2009-10
Analysis:
1. World steel billet exports have fallen over previous year.
2. Although CIS exports have fallen but still CIS has lived up to the reputation of being
the largest exporter of steel Billets.
3. In Asia Japan, China, Taiwan, Malaysia and South Korea have been the largest
exporters.
Major Billet Exporting Nations('000 MT)

18000
16000
14000
12000
Turkey
10000
Russia
8000
6000
Ukraine
4000
India
2000
0
2006-07
2007-08
2008-09
2009-10

Analysis:
1. Russia followed by Ukraine has been the world largest Exporters and Turkey is the 5th
largest exporter after Brazil and Japan.
2. Exports of all major Exporting nations have fallen in 2010.
53
Comparison of Asia and CIS in Steel Billets and Semis Export

80000
60000
C.I.S.
40000
Asia
20000
World
0
2006-07
2007-08
2008-09
2009-10
Imports of Billets and Semis (000 MT)

Imports of Billets and Semis(000 MT)
2006-07
2007-08 2008-09
EU
19960
21700
20449
C.I.S.
405
520
507
North America
11428
8328
7604
South America
1712
862
1111
Africa
3630
2641
3404
Middle East
4394
6518
8370
Asia
22768
21162
22664
Oceania
53
39 109
World
68425
66589
68880
2009-10
10625
299
2777
649
3279
6641
24838
5
53256

30000
25000
20000
2006-07
15000
2007-08
2008-09
10000
2009-10
5000
0
EU
54
C.I.S.
North
America
South
America
Africa
Middle
East
Asia

30000
25000
20000
2006-07
15000
2007-08
10000
2008-09
5000
2009-10
0
EU
North Middle East

America
Asia
Africa
Analysis:
1. Billet imports have fallen.
2. CIS is the least importer which is quite understood since CIS is the largest exporter.
3. The largest importer has been Asia and Europe. Asia has imported 24838 thousand MT of
billets followed by Europe with 10625 thousand MT.
4. Middle East and Africa has shown promise of being big importer which is mainly due to
Infrastructural development there.
Major importers of Steel Billets and Semis in Middle East

2006-07 2007-08 2008-09 2009-10
Middle East
4394
6518
8370
6641
Lebanon
61
61
231
1305
UAE
411
411
1610
1215
Syria
477
477
480
743

10000
8000
Middle East
6000
Lebanon
4000
UAE
2000
Syria
0
2006-07
55
2007-08
2008-09
2009-10
3.7 Black Sea Billet Pricing
Analysis:
4. The prices of Turkey Billet were more volatile in 2nd and 3rd quarter year of
2010 and prices ranged from $ 420 to $ 630 per ton.
5. Billet price also depends on demand for final product sine billet is a semi
finished product (Bars, rods, Pipe, Tube and wires).
6. The price of Billet moves with the price of Rebar. It can be seen in graph that
billet price moves with rebar price. If the Rebar prices rises than billet prices
also rises.
56
Analysis:
1. There is also a correlation between prices of wire rod and billets.
2. Prices of billet is always less than wire rod as billet is a semi product from which wire
rod is made as final product.
3. With the increase in price of wire rod demand and price of billet also increases.
3.8 BILLET AND SCRAP COMPARATIVE PARICE STUDY-TURKEY
Turkey Scrap and Billet Price Comparison

Quarter
Scrap
Billet
Q3 08
370
1150
Q4 08
208
416
Q1 09
230
405
Q2 09
216
393
Q3 09
254
451
Q4 09
250
438
Q1 10
311
496
Q2 10
360
549
Q3 10
302
480
Q4 10
340
525
Q1 11
370
580
$/FOB/t
Co-Relation = 0.649346
Turkey Scrap and Billet Price

Comparision $/FOB/t
1400
1200
1000
800
600
Scrap
400
Billet
200
0
Q3
08
57
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
Q2
10
Q3
10
Q4
10
Q1
11
3.9 FINAL ANALYSIS OF TURKEY MARKET:

Turkey is the fifth largest producer of steel billets and it is the major exporter of billets to Middle
East market. Billet demand is influenced by the demand for the final products like wire rod, wire,
pipe and tubes. The price of turkey billet fluctuated in first half of 2010 but after that it has been
steadily raising and in July 2011 prices had reached US $650 per ton.
Due to Ramadan Black Sea region billet offer prices will changed but interest from buyers will drop
ahead of Ramadan which will slow down construction activity in key import areas.With Ramadan in
August consumption will go down so nobody is willing to buy anything unless it is delivered after
Ramadan. Billet is mainly used in construction. During Ramadan, workers is Muslim countries will be
fastening and this, coupled with hot weather, will slow down construction in Northern Africa and
the Middle East.
Sluggish demand, however, will push Turkish producers to cut their offers for rebar. Offers for rebar
fell to $725-735 per tonne fob from $760-780 per tonne fob Turkey earlier in June and are likely to
fall to $720 fob soon. The market is going down and the sentiment is more bearish.
The demand for Scrap (HMS 1&2) also determines the price of the Steel Billets. The analysis shows a
Co-Relation of 0.65.
Political unrest in Middle East and North Africa has compounded the problem as many of the
captive export markets for Black Sea based and Turkish mills have suddenly vanished creating a
vacuum, forcing them to find alternate destinations.
58
3.10 BILLET MANUFACTURERS

COMPANY NAME
COUNTRY BASED
Size in mm Export Markets
Remark*
Kardemir
Turkey
100 by 100
120 by 120
130 by 130
150 by 150
$477-480(ExW)
Evraz
Russia
100 by 100
120 by 120
130 by 130
150 by 150
Angang New Steel
China
100 by 100
120 by 120
150 by 150
North America,South America,South

East Asia ,Africa,Europe,Middle East
Kobe Steel
Japan
100 by 100
120 by 120
130 by 130
140 by 140
150 by 150
155 by 155
Asia,South East Asia,Europe,Middle East
Ningbo Shenlong Group
China
100 by 100
120 by 120
140 by 140
North America,South America,South

East Asia ,Africa,Europe,Middle East
Henan
China
150 by 150
North America,South America,South East Asia US$700-850(FOB)

Africa
Changzhou Ropine Metal
China
120 by 120
100 by 100
150 by 150
150 by 230
165 by 225

Africa,Europe,Middle East
Advanced Technology
China
100 by 100

Africa,Europe,Middle East
59
UAE,South East Asia,Europe,China
4mt(Capct)
DHT Metal
Azerbaizan
130 by 130
150 by 150
India,Russia,Yemen,Turkey,Middle East
China Machinery Industry Corporation China

Machine 1
150 by 150
120 by 120
(Capct)900000
Machine 2
150 by 150
135 by 135
120 by 120
(Capct)15000000
JSPL
India
130 by 130
150 by 150
200 by 200
Europe,Middle East,SE Asia
Anshan Shegylin
China
120 by 120
150 by 150
South Korea,Japan,Thailand
Anshan Shenmao
China
120 by 120
150 by 150
South Korea,Japan,Thailand
Egi Cilik As
Turkey
100 by 100
110 by 110
115 by 115
120 by 120
130 by 130
140 by 140
150 by 150
160 by 160
170 by 170
200 by 200
US,Middle Est,Europe,Far East
Qatar Steel
Qatar
130 by 130
150 by 150
200 by 200
Mainly Domestic use,Surplous exported to Neig- 3mt(Capct)

bouring countries
TKCSteel
Phillipines
120 by 120
130 by 130
140 by 140
150 by 150
South East asian Countries
60
(Capct)0.75
Light Billets
400,000(Capct)
3.11 RESULT AND DISCUSSION ON STEEL BILLET

SAIL Annual Billet production capacity is 3.257 lakh tones/annum,the post expansion capacity will
raise to 14.305 lakh tones. Billet is packed for shipment on loose basis.Asia is the largest importer of
the steel billets followed by Europe.CIS being the largest exporter.Billet demand and prices are
affected by the demand and prices of Wire rod and other finished products and by demand for
scrap.In recent times the economic depression then the flood of Australia the largest producer and
exporter of coking coal and recently the uprising in MENA region has affected the demand and price
for steel billets.China is levying high tax( called export tax) on export of steel billets , thus
discouraging expot of steel billet.Qatar company Qasco is one the only major steel producer in
Middle East.
King Abdullahs support package offers to give 18m lower and middle-income Saudis inflationbusting pay rises, unemployment benefits and affordable housing. The cash-rich Saudi government
pledged to spend a total of $400bn by the end of 2014 to improve education, health care and the
kingdoms infrastructure. The Emir of Kuwait, Sheikh Sabah Al-Ahmed Al-Jaber Al-Saber gave its
citizens free food rations and a grant of $4,000 as part of a $5 billion domestic aid package, in an
attempt to ward off demonstrations. Oman government has also announced a cash subsidy for
unemployed and subsidy to help people buy home.
IMPLICATION FOR SAIL

The construction industry once again will be booming in MENA region as many nations has
apportioned billions of dollars for building homes and improving infrastructure to curb the uprising
which provide an opportunity for SAIL to export more and capture good market share.
61
4.1
EXPORT POTENTIAL OF REBARS WITH FOCUS ON MENA
A Rebar (short for Reinforcing bar), also known as reinforcing steel, reinforcement steel, or
a deformed bar, is a common steel bar, and is commonly used as a tensioning device in reinforced
concrete and reinforced masonry structures holding the concrete in compression. It is usually
formed from carbon steel, and is given ridges for better mechanical anchoring into the concrete.
In Australia, it is colloquially known as reo.
Grades
Rebar is available in different grades and specifications that vary in yield strength, ultimate tensile
strength, chemical composition, and percentage of elongation. The grade designation is equal to the
minimum yield strength of the bar in ksi (1000 psi) for example grade 60 rebar has minimum yield
strength of 60 ksi Rebar is typically manufactured in grades 40, 60, and 75.
Common ASTM specification is:
ASTM A82: Specification for Plain Steel Wire for Concrete Reinforcement
ASTM A184/A184M: Specification for Fabricated Deformed Steel Bar Mats for Concrete
Reinforcement
ASTM A185: Specification for Welded Plain Steel Wire Fabric for Concrete Reinforcement
ASTM A496: Specification for Deformed Steel Wire for Concrete Reinforcement
ASTM A497: Specification for Welded Deformed Steel Wire Fabric for Concrete Reinforcement
ASTM A615/A615M: Deformed and plain carbon-steel bars for concrete reinforcement
ASTM A616/A616M: Specification for Rail-Steel Deformed and Plain Bars for Concrete
Reinforcement
ASTM A617/A617M: Specification for Axle-Steel Deformed and Plain Bars for Concrete
Reinforcement
ASTM A706/A706M: Low-alloy steel deformed and plain bars for concrete reinforcement
ASTM A767/A767M: Specification for Zinc-Coated(Galvanized) Steel Bars for Concrete

Reinforcement
ASTM A775/A775M: Specification for Epoxy-Coated Reinforcing Steel Bars
ASTM A934/A934M: Specification for Epoxy-Coated Prefabricated Steel Reinforcing Bars
ASTM A955: Deformed and plain stainless-steel bars for concrete reinforcement
ASTM A996: Rail-steel and axle-steel deformed bars for concrete reinforcement
ASTM marking designations are:
'S' billet A615
'I' rail A616

62
'IR' Rail Meeting Supplementary Requirements S1 A616
'A' Axle A617
'W' Low-alloy A706
Historically in Europe, rebar is composed of mild steel material with yield strength of approximately
250 N/mm. Modern rebar is composed of high-yield steel, with a yield strength more typically 500
N/mm. Rebar can be supplied with various grades of ductility, with the more ductile steel capable of
absorbing considerably greater energy when deformed - this can be of use in design to resist the
forces from earthquakes for example.
Difference between Bars and Rod:
1. Shape - Bars are in the form of round bars, flat bars, hexa bars, etc Wire rods are always
round.
2. Size: Bars are in range of 8 mm to 50 mm (round bars); whereas wire rods come the range of
5.5 to 22 (max upto 28.6 mm)
63
4.2 List of certification Agency for steel Rebar

ACRS-AUSTARLIA
The Australian Certification Authority for Reinforcing Steel (ACRS) administers an industry-based,
independent, third-party product certification scheme, certifying reinforcing, pressurising and
structural steels to Australian Standards.
Benefits to the construction industry and specifies from ACRS certification include:
Assured quality and fitness for purpose of steel irrespective of origin of material
Overseas experience shows certification neither affects availability nor competitive price
levels
Preservation of Australia's world-class construction technologies
Prevent reintroduction of site inspection and testing
Removes the need for customers to check every supplier test certificate
Benefits to Certificate Holders include:
Process and materials benchmarked to appropriate Standards
Reduced compliance costs for projects requiring certified materials
Share in the benefits of ACRS promotion of the 'mark'
ACRS MARK
An important point to emphasise is that ACRS is voluntary and inclusive of imported steel. Our goal
is simply to ensure that reinforcing and pressurising steels are quality-approved materials, which
comply with Australian Standards, thereby maintaining confidence in reinforced concrete as the preeminent building material in Australia.
OCAB-BELGIUM
The OCAB is also the agency notified by the Belgian State to issue the CE mark of lighting columns
(according to 40), structural steel (according to EN 10025), the structural supports (according to EN
1337), and fasteners (according to EN 14399). It also certifies kits preload (as ETAG013).
The OCAB manages BENOR the mark in the field of steel products for concrete, following the
mandate received from Mark Committee Benor, in accordance with the requirements of Articles 1015 of the General Rules for Use and Control Mark Benor to Standards (published in 2000).
64
AFCAB-FRANCE
AFCAB is an independent body settled in 1990 to deliver certificates of conformity to companies that
manufacture or fix on site concrete reinforcing steels or their accessories. Choose cut, bent or
welded steels certified by AFCAB, choose a fixing company certified by AFCAB, provides to the
contractor and to the user the guarantee that the reinforcing steel will not break the quality of the
building, from the design to the construction. The certification rules were established including all
the relevant parties. They ensure that the level of quality of the certified products meets the needs
of all the members involved in the construction.
GLOBE CERT AB
GlobeCert AB is a private company established for the global certification of all reinforcing steel for
the Nordic market. The activities are mainly concrete reinforcing steel, pressurising and steel
mesh. GlobeCert AB is since December 28, 2007 an accredited environmental auditor as
certification of products. GlobeCert Ltd is accredited to the international standard / regulation EN
45011.Accreditation means that GlobeCert Ltd has been assessed in possession of the required skills
in defined areas and applies a quality management system meets the requirements.
DIBT-GERMANY
Deutsches Institut fr Bautechnik (DIBt) is an institute of the Federal and Laender Governments for a
uniform fulfilment of technical tasks in the field of public law.
These tasks include in particular:
Granting of European technical approvals for construction products and systems
granting of allgemeine bauaufsichtliche Zulassungen ('national technical approvals') for
construction products and types of construction,
recognition of testing laboratories, inspection bodies and certification bodies for tasks within
the framework of the -Zeichen (' mark') and the CE marking of construction products
Publication of Bauregellisten ('Construction Products List') A and B as well as List C for
construction products.
65
UK-CARES
CARES is an independent, not-for-profit certification body, established in 1983 to provide confidence

to the users, purchasers and specifies of constructional steels through a regime of regulation, testing
and inspection. It operates for the benefit of the construction industry offering certification schemes
for companies that produce materials, components or offer services, primarily to the reinforced
concrete industry. Clients can specify CARES approved companies and products with confidence that
they will comply with the relevant product or system standards and without the need for verification
testing by the purchaser or contractor.
The Authority is accredited by the United Kingdom Accreditation Service (UKAS) to ISO Guide 65
(product certification) and ISO 17021 (management systems certification using ISO 9001 and 14001).
UKAS approves and monitors certification bodies on behalf of the UK government. CARES is a
Notified Certification Body and a European Technical Approval Body under the Construction
Products Directive for the following:
Reinforcing and Prestressing steels

Post-tensioning systems
Structural Steels
Precast concrete products
Certification by CARES can be used by manufacturers in support of CE marking. CARES is an

international operator, providing certification in over 40 countries worldwide. In order to provide
product users with the confidence that their products arrive at the construction site as specified
CARES certificates firms at all levels through the supply chain, from the production of hot metal
through processing and stocking and distribution. CARES endeavours to ensure that its certification
is required by major companies operating in the construction supply chain in the UK, Europe, Middle
East and the Far East in particular. In the UK, CARES certification is a requirement in major
construction specifications such Specification for Highway Works, County Councils specifications, the
National Building Specification and the National Structural Concrete specification.
66
4.3 World Production of Concrete Rebars (000' MT)

World Production of Concrete Rebars (000' MT)
2006-07
2007-08
2008-09
2009-10
EU
20351
20651
20730
13618
North America
10553
11941
11733
8216
South America
2982
3642
4333
3337
Africa
1554
1612
1522
843
Middle East
3547
4213
4414
1468
Asia
108034
122490
115628 139038
Production of Concrete Reinforcing Bars (000' MT)

160000
140000
120000
100000
80000
60000
40000
20000
0
2006-07
2007-08
2008-09
2009-10
EU
North
South
America America
Africa
Middle
East
Asia
World Rebar Production

Year
2006-07 2007-08 2008-09 2009-10
World 147082 164884 158675 166761
170000
165000
160000
155000
Production of Concrete
Reinforcing Bars
150000
145000
140000
135000
2006-07 2007-08 2008-09 2009-10
67
Share of Asia in World rebar Production

Production of Concrete Reinforcing Bars (000' MT)
2006-07 2007-08 2008-09
Asia
108034
122490
115628
World
147082
164884
158675
Asia share (in %) 73.45154 74.28859 72.87096
2009-10
139038
166761
83.37561
200000
150000
100000
Asia
World
50000
0
2006-07
2007-08
2008-09
2009-10
Co-Relation: 0.86
China's comparison with Asia Rebar Production

Year
2006-07 2007-08 2008-09 2009-10
China
86786
101074
95600 121506
Asia
108034
122490
115628 139038
China Share (in %) 80.33212 82.51612 82.67894 87.3905
China's comparision with Asia Rebar Production

160000
140000
120000
100000
80000
China
60000
Asia
40000
20000
0
2006-07
68
2007-08
2008-09
2009-10
Indian Rebars Export to Middle East

Country
Ranking
UAE
1
IRAN
2
EGYPT
3
BAHRAIN
4
SAUDI ARABIA
5
QATAR
6
KUWAIT
7
4.4 GLOBAL LONG (REBAR) PRICE

World Average Rebar Price
Mar-10
579
Apr-10
675
May-10
681
Jun-10
632
Jul-10
588
Aug-10
612
Sep-10
639
Oct-10
649
Nov-10
651
Dec-10
653
Jan-11
740
Feb-11
788
Mar-11
768
Apr-11
748
World Average Rebar Price

1000
800
600
400
200
0
(This is the average of all relevant Regions)

69
4.5 CHINA REBAR PRODUCTION AND Y-O-Y %CHANGE (SHANGHAI MAREKT

EX-17%VAT)-The Competitior
(In US$/tonne)
C HIN A REBA R DO MESTIC

555
540
550
520
500
440
420
420
400
400
420
430
460
A p r-10
May -10
Ju n -10
Ju l-10
A u g-10
Se p -10
O ct-10
N o v -10
De c-10
Jan -11
Fe b -11
Mar-11
A p r-11
Y-O -Y% C HA N GE
39
23
16
5
0
2
1
5
16
16
12
12
17
C H IN A D O M E S T IC R E B A R (IN U S $/ton n e
555 540 550
520 500
39
23
16
460
440 420 420
430
400 400 420
C H INA REBA R D O M ESTIC
70
16
16
12
12
17
Y-O -Y% C H A NGE
4.6 ASIAN MARKET TREND OF REBAR IMPORT

ASIA REBAR IMPORT PRICE TREND FROM 2003 TO 2010(IN US$/tonne)
REBARIMPORT
2003AVG.
2004AVG.
2005AVG.
2006AVG.
2007AVG
2008AVG.
2009AVG
2010AVG.
Y-O-Y%CHANGE
ASIAREBARIMPORTPRICETREND
280
451
416
446
572
825
497
650
61
8
7
28
44
30
31
REBARIMPORT
Y-O-Y%CHANGE
825
650
451 416 446 572 497
280
61 8 7 28 44 30 31
4.7 MENA REGION REBAR PRODUCING COMPANIES

Saudi iron and steel(Hadeed)
S a u d i Ir o n a n d S te e l C o m p a n y ( H A D E E D ) .
PRO DU CT
G R A D E /A P P LIC A T IO N
REBA R
B U ILD IN G A N D C O N S T R U C T IO N M IN .420N / m m s q
m i n .620N / m m s q .
R E B A R IN C O ILS
B U ILD IN G A N D C O N S T R U C T IO N M IN .460/ m m s q .
IN D U S T R IA L A P P LIC A T IO N
S T R A IG H T E N IN G
m i n .3000/ m m s q .
W IR E R O D
IN D U S T R IA L A P P LIC A T IO N ,
W IR E D R A W IN G
M E S H A P P LIC A T IO N
& FEN C E
210- 360N / m m s q .
210- 360N / m m s q .
220- 360N / m m s q .
PRO DU CT
TEST M ETH O D
STEEL G RA D E
R e i n f o rce m e n t b a r
A S T M G R A D E 60
B S 4449,460
B S 4449,460
B S 4449,260
2100N ,2140,S H 2110

1300, 1303
S H 2110,2113,2114,2120
2100N ,2140,S H 2110
1300,,1303
S H 2110,2113,2114,2120
1303
R E B A R IN C O IL
W IR E R O D
A IS I
A IS I
A IS I
A IS I
A IS I
A IS I
A IS I
A IS I
71
1006
1008
1012
1015
1018
1021
1025
1010
T Y P IC A L Y IE LD S T R E N G T H
T Y P IC A L T E N S ILE S T R E N G T H
RA N G E
400
500
610
700
800
900
810
1100
Qatar steel
QATAR STEEL :REBAR AND WIRE ROD PROFILE
A
PRODUCT
STANDARD
REBAR
YS(min.) TS(min.)
EQUIVALENT TO
ASTM A615,GR 40
ASTM A615,GR 60
SS A 2/1992
BS 4449:1997
GRB460B
BS 4449:2005
GRB500B
B
PRODUCT
WIRE ROD
SIZE
5.5m to 12m
REBAR IN COIL
8mm to 12 mm
280
420
420
620
460
506
460 YS*1.08
500 YS*1.08
STEEL GRADES:SAE/1008/SAE1018/SAE1012
SAE/1042/SAE/1060/SAE1065/SAE1070/
ASTM GR60 BS/4449;GR460
*OTHER GRADES AS PER CUSTOMER SPECIFICATION

**All products are certified by CARES/DCL/ESMA
TECHNICAL SPECIFICATION
Mechanical Properties of Wire Rods and Rebars
GRADE
SAE 1008
SAE 1018
*ASTM GR60
*BS4449;
GR460
Ys-N/mm2
250-300
300-350
420 min
460 min
Ts-N/mm2
350-425
450-525
620 min
600 min
%El
30 min
22 min
9 min
14 min
*For Non- Quenched Products using micro alloying
72
Libya iron and steel (LISCO)
LISCO : PRODUCT PROFILE(W IRE & ROD)
ROD
REBAR
DIMEN SION
le ngth
5.5,6,8,10,12m m
10,12,14,16,18,20,25,28,30,32,40m m
12m
12m
L IS C O : P R O D U C T P R O F IL E ( W IR E & R O D )
RO D
REBA R
D IM E N S IO N
le n g th
5 .5 ,6 ,8 ,1 0 ,1 2 m m
1 0 ,1 2 ,1 4 ,1 6 ,1 8 ,2 0 ,2 5 ,2 8 ,3 0 ,3 2 ,4 0 m m
12m
12m
STA N D A RD
A IS I
1008-1074
D IN 4 4 8
B St 420s
D IN 1 7 1 0 0 S t 3 7 - 2
st 44-2
st 50-2
st 60-2
st70-2
AFN O R
N F A 3 5 - 0 1 5 :F e E 2 2 ,F e E 2 4
N F A 3 5 - 0 1 6 :F e E 4 0
N F A 3 5 - 5 0 1 :E 2 8 - 2 ,E 5 0 - 2 ,E 6 0 - 2
A STM
A S T M A 6 1 5 :G R 4 0 ,G R 6 0
TO LER A N C E
D IN
RO D
BAR
73
488
488
59110
1013
Sonasid (Morocco)
FeE400NS
FeE4005
FeE500S
FeTE500
FeE215
400
440
2.5
6,8,10,12,
14,16
500
550
2.5
6,8,10,12,
14,16
20,25,30,32,
40
500
550
8
4,5,6,7,8,9,
10
215
330-490
22
5.5,8,10,12,14,16
STANDARDS
ELASTICITYLIMIT
400
RESISTANCE
440
ELONGATIONAS%
14
DIAMETER
6,8,10,12,
14,16
EMIRATES STEEL (UNITED ARAB EMIRATES)
STANDARD
STEEL REBAR BS 4449 (97) GR 460 B
MECHANICAL PROPERTIES
As Specified
Guarenteed By ESI
Yield Stress (N/mm2)

Min. 460
Min. 500
Tensile Strength (N/mm2)

Min. 1.08 x Act. Y.S.
Min. 590
Elongation (%)
Min. 14
Min. 16
BAR DIMENSIONS
Nominal Diameter (mm)
Nominal Wieght (Kg/m) No.12m. Long Bars / 2ton Bundle

10
0.616
270
12
0.888
188
14
1.208
138
16
1.579
106
18
1.998
84
20
2.466
68
22
2.984
56
25
3.854
44
28
4.834
34
32
6.313
26
Bundles are secured with 4-6 equidistant straps with 5.5 mm wire
BAR TOLERANCE
Bar length and with tolerance as per specification
74
STANDARD
As Specified
Guarenteed By ESI

Min. 460
Min. 500

Min. 590
Elongation (%)
Min. 14
Min. 16
BAR DIMENSIONS
Nominal Wieght (Kg/m) No.12m. Long Bars / 2ton Bundle

10
0.616
270
12
0.888
188
14
1.208
138
16
1.579
106
18
1.998
84
20
2.466
68
22
2.984
56
25
3.854
44
28
4.834
34
32
6.313
26
BAR TOLERANCE
STANDARD
As Specified
Guarenteed By ESI

Min. 460
Min. 500

Min. 590
Elongation (%)
Min. 14
Min. 16
BAR DIMENSIONS
Nominal W ieght (Kg/m) No.12m. Long Bars / 2ton Bundle

10
0.616
270
12
0.888
188
14
1.208
138
16
1.579
106
18
1.998
84
20
2.466
68
22
2.984
56
25
3.854
44
28
4.834
34
32
6.313
26
BAR TOLERANCE
75
4.8 APPARENT STEEL CONSUMPTION IN MENA

AFRICAN NATION-APPARENT STEEL CONSUMPTION
AFRICA(TOTAL)
Algeria
Egypt
Morocco
ASU*(mmt)
Growthrate(as%age)
2009(est.)2010(f)2010(f) 2009(est.)2010(f) 2010(f)
26.4 28.7
31.3 9.60% 8.60% 9.30%
4.4
9.2
1.9
4.8
9.5
2.1
5.3 35.40% 10.10% 9.20%

10.1 40.00% 3.60% 6.20%
2.3 24.30% 8.20% 10.40%
*ASU-APPARENTSTEELCONSUMPTION
MIDDLE EAST-APPARENT STEEL CONSUMPTION
*ASU(mmt)
Growthrate
2009(est.) 2010(f) 2011(f) 2009(est.)2010(f) 2011(f)
MiddleEast,
IRAN
SAUDIARABIA
U.A.E
40.7
16.3
7.6
6
44.7
16.6
9.3
6.9
48.4
17.5
10
7.4
-8.00%
4.60%
-13.10%
-38.60%
10.00%
1.80%
22.20%
16.40%
8.20%
5.50%
7.90%
6.50%
FINDING: From the above figure it can be concluded that Morocco and Egypt in the North
Africa and UAE and Saudi Arabia in the Middle East has promising demand of steel in future.
MENA REGION
MENA
*ASU (mmt)
Growth rate
2009(est.) 2010(f) 2011(f)
2009(est.) 2010(f) 2011(f)
57.5
62.9
68.2
0.80%
9.50%
8.40%
76
NET IMPORT OF STEEL PRODUCT IN MENA REGION
Findings:
The Middle East has traditionally had a very small ratio of capacity to demand, relying
heavily on imported steel to meet the demands of the construction and oil and gas sectors.
However due to capacity enhancement in the steel sector (in MENA region), led a
satisfactory level of production for the internal consumption. In near future MENA region
will produce enough to satisfy their internal demand at least. In MIDDLE EAST the
capacity/demand ratio could rise significantly in the future, as many mini-mill projects come
on stream. This would foster a reduction in the regions wide steel trade deficit
In Africa, capacity has been greater than demand in recent years, but due to difficulties in
bringing production on stream, steel output has remained lower than consumption.
In the future, demand is projected to reach the regions capacity, but production will
probably continue to lag and the region will remain a large net importer.
77
Findings:
The Middle East has traditionally had a very small ratio of capacity to demand, relying
heavily on imported steel to meet the demands of the construction and oil and gas sectors.
However due to capacity enhancement in the steel sector (in MENA region), led a
satisfactory level of production for the internal consumption. In near future MENA region
will produce enough to satisfy their internal demand at least. In MIDDLE EAST the
capacity/demand ratio could rise significantly in the future, as many mini-mill projects come
on stream. This would foster a reduction in the regions wide steel trade deficit
78
Findings:
In Africa, capacity has been greater than demand in recent years, but due to difficulties in
bringing production on stream, steel output has remained lower than consumption.
In the future, demand is projected to reach the regions capacity, but production will probably
continue to lag and the region will remain a large net importer.
79
5.1 INDIA- GCC FTA

India and the Gulf states are moving in the right direction to conclude a free trade agreement
(FTA) for boosting comprehensive economic cooperation between the two sides.
The pact covering goods, services and investment sectors will take economic ties between India and
the GCC (Gulf Cooperation Council) nations to a higher level. Al-Rabeeah said businesses have to
take the lead and work with the government. Investment and business opportunities from India in
the areas of education, IT, tourism, health care, biotechnology, telecommunications and
automobiles and components should be explored,
While the India-GCC FTA is expected to open a billion-strong consumer market for the Gulf
countries, it will also benefit India substantially as the six-member bloc controls over 45 percent of
the world's recoverable oil wealth and 20 percent of gas resources. The bloc also accounts for about
a fifth of the global crude output.
The free trade deal, which will remove restrictive duties and push down tariffs on goods trading, is
expected to provide Indian pharmaceutical and chemical industries a boost in their presence in the
Gulf region. Items having export potential from India to GCC countries include food products,
pharmaceuticals, machinery and transport equipment, ceramic products, apparels and clothing,
cotton and woven fabrics, plastic and rubber products, essential oils, perfumery and cosmetics
besides iron and steel articles.
The potential sectors for investments by Indian entrepreneurs include information technology,
software development, telecommunications, education, training and health care services, tourism
and hotel industry, banking and financial services, oil, gas and petrochemicals, electricity, housing,
road and rail network.
Two-way trade between India and the GCC could exceed $130 billion by 2013-14, up from $100
billion in 2009-10,. While India-Saudi bilateral trade stood at to $21 billion in 2009-10, Indias exports
to the Gulf nation rose to $3.90 billion in 2009-10.
Saudi Arabia pumped in FDI worth $31.5 million between April 2000 and August 2010 into the Indian
economy. The main sectors that attracted the investments were electrical equipment, food
processing, automobile, computer software and hardware, and telecommunications.
80
5.2 TURKEY- A KEY COMPETITOR IN MENA REGION

Turkey's steel product exports to the MENA (Middle East and North Africa) region in the first four
months of 2010 declined by 29.99 percent year on year to 3.27 million metric tons, according to the
data provided by the Istanbul Mineral and Metals Exporters' Association (IMMIB). Meanwhile, the
region continued to be Turkey's major export market, accounting for 61 percent of its total steel
product exports. However, in January-April 2009, this figure was recorded at 69.44 percent.
In January-April period of this year, the UAE again ranked first among Turkey's steel product export
markets with a steel product export volume amounting to 637,693 metric tons, up 14 percent year
on year, followed by Egypt, Turkey's largest steel export market in the first four months of 2009,
with 547,689 metric tons, down 68.65 percent.
In the given period, Turkey's steel product exports to Iraq totalled 323,240 metric tons, down 40.43
percent, exports to Saudi Arabia amounted to 417,362 metric tons, up 105.15 percent, and exports
to Libya came to 244,660 metric tons, down 20.32 percent, all compared to the corresponding
period of 2009.
In the January-April period, steel bars, including rebar, was Turkey's most exported product to the
region, accounting for 37.12 percent of the country's total steel product exports to the region. Steel
bar exports to the MENA region totalled 1.21 million metric tons in the first four months of 2010,
regressing by 62.26 percent year on year. Meanwhile, steel billet exports to the region amounted to
767,123 metric tons, climbing by 3.78 times compared to the year-ago period, and accounting for
23.45 percent of Turkey's total steel export to the MENA region.
General Secretary of Turkish iron and steel producers association Veysel Yayan expects Turkeys
exports of rebar, as well as domestic crude steel production to be stronger in 2011 than they were
last year. Yayan also adds that the growth in Turkish steel consumption levels will continue. As was
discussed at the recent OECD steel committee meeting, consumption growth in China is expected to
slow and that country will therefore attain a steel production-consumption level balance, which
gives a positive outlook for the global market.
Turkish rebar exports reached 710,000 tonnes in April 2011, increasing 52% year-on-year. In March
2011, Turkish rebar exports were 645,000t. Yayan tells SBB that Turkish rebar exports have seen a
significant increase since the beginning of this year, in line with an overall increase in global steel
consumption. Turkeys crude steel production also increased 31% y-on-y in the first quarter, which
was the highest quarterly increase in crude steel production in the world. In Q1 2011 Turkish rebar
exports totalled 1.8 million tonnes, up from 1.4mt in the same period of 2010.
Turkey's steel exports to the Egyptian market during the first 8 months of the year reached 799,950t,
declining by 96.49% over the exports of the same period of 2009, according to the data provided by
the Istanbul Mineral and Metals Exporters' Association (IMMIB) and published by Steel Orbis.
Turkish exports to Egypt, constituted mainly of rebar, account for 11.6% of the overall Turkish steel
exports to the MENA region which amounted to 6.9 million tons during the first 8 months of this
year. Egypt is the third largest export market for Turkish steel, while UAE comes first and Saudi
Arabia second.
81
Despite the decline of Turkish exports to the Egyptian market during the period in question, Egyptian
steel mills represented by the Chamber of Metal Industries are still demanding from the Ministry of
Trade & Industry in Egypt to take immediate measures in order to limit the rebar imports, either by
imposing protective charges or levying customs duties until decisions are reached in the dumping
lawsuits filed by the Chamber.
Sources form the Chamber say that rebar mills in Egypt are facing a real crisis as a result of not being
able to sell their stockpiles that accumulated to huge amounts after large shipments of Turkish rebar
entered the market, encouraged by the removal of customs duties between the two countries.
Media reports say that the Chamber of Metal Industries has lately filed again a dumping lawsuit
against imported Turkish rebar, demanding a 10% customs duty to be levied on imported rebar. The
continuous influx of steel imports into Egypt have lead to a partial shutdown of some mills and
reducing production in others as a result of the inability of local mills to sell out their products.
Turkish rebar exports are reported to have fallen 17% year-on-year in May to 559,320 tonnes. May
rebar exports were also 21% down from Aprils 709,000t. Market sources tell that a strong domestic
market in the last weeks of May and slow export demand, prior to that, caused producers to focus
mainly on the domestic market. The gap between domestic market and export market prices
reached around $80/t in May, while in June this gap seems to have narrowed to $40/t.
Producers expect export markets to accept higher rebar offer prices in the coming days, but exports
may not strengthen significantly, since the domestic market is still found to be more attractive to
producers.
According to data released by General Secretariat of Istanbul Mineral and Metals Exporters
Association, Turkey's steelmakers exported 3.62 million tonnes of rebar in the H1 of 2011 up by
16.89% YoY. Moreover, the total figures of the rebar exports amounted USD 2.42 billion jumped by
38.70% YoY. However, the countrys rebar exports in this June declined by 17.11% YoY to 487,815
tons. Among them, 94,105 tonnes were exported to UAE, 68,856 tonnes were to Egypt and 67,138
tonnes were to Iraq.
Turkey's exports increased in April to USD 11.8 billion keeping the rate of increase in exports for the
first 4 months of 2011 at more than 22% compared to the same period last year.
Mr Mehmet Bykeki president of TM said that Turkey had exported nearly USD 43.3 billion
overseas in the January and April period up 22.2% from a year ago. If this sharp growth trend in
exports continues at a similar pace for the rest of the year, Turkey will reach a record-high export
volume of some USD 135 billion. April's increase in the export sector came despite the fact that the
Middle East and North Africa region has been experiencing havoc, and also while the Turkish lira has
gained notable value against the US dollar because of present uncertainties in the world's largest
economy. Mr Bykeki stated that Exports to the MENA region have dramatically declined,
nearing almost zero in Libya. However, recent revolts in Syria have not affected exports to this
country yet. Despite the ongoing uncertainties in the Middle East and North Africa and the increased
value of the Turkish lira against the US dollar, Turkey managed to export nearly USD 43.3 billion in
goods in the January to April period this year, signaling that it may earn an all time high of USD 135
billion in export revenue in 2011
82
SOME OF THE MAJOR INFRASTRUCTURAL PROJECTS IN THE MENA REGION

$4.3trn to be spent on MENA construction sector to 2020
A total of $4.3 trillion is forecast to be spent on construction in the Middle East and North Africa
region over the next decade, representing growth of 80 percent. The report, sponsored by
PricewaterhouseCoopers and carried out by Global Construction Perspectives and Oxford Economics,
predicts growth in global construction will outpace world GDP growth over the next decade.
The report, Global Construction 2020, forecasts that global construction will grow by 67 percent
from $7.2 trillion to $12 trillion annually by 2020.
The MENA region is expected to outpace the global growth rate, driven by population increases,
economic growth, the desire for diversification and, in some cases, preparations for global sporting
events, particularly the 2022 World cup in Qatar. Meanwhile, Qatar is looking to spend $70-billion to
host the FIFA World Cup in 2022 as part of its wider investment to achieve its 2030 Vision.
The report highlights Qatar as the fastest growing construction market.
Important facilitators of construction growth in the region are expected to include changes to
mortgage laws in Saudi Arabia, driving residential construction, and more private participation in
infrastructure investment across the region. Mohammad Dahmash, PwC's leader of real estate,
construction & engineering for the Middle East said: "Particular emphasis will be placed on social
and affordable housing to meet the needs of the growing indigenous populations.
"The procurement process is also getting sophisticated and many countries within the Middle East
have started applying 'Build Operate Transfer' and 'Public Private Partnership' schemes which not
only help in financing projects but also ensure the efficient implementation and execution to
international standards."
Charles Lloyd, PwC's head of capital projects and infrastructure for the Middle East and North Africa
added: "This report shows that the MENA region is likely to continue to be a major source of growth
in the global construction market.
"Demographic factors, economic growth and regional Governments' pursuit of more balanced
economies will all be powerful stimuli of construction demand."
Worlds tallest tower to be built for $1.2 bn in Saudi Arabia

Kingdom Holding , owned by Saudi billionaire Prince Alwaleed bin Talal unveiled plans on Tuesday to
build the worlds tallest tower in the Red Sea port city of Jeddah, signing a 4.6 billion riyal ($1.23
billion)
The proposed tower will stretch a kilometre high and include a hotel, serviced apartments, luxury
condominiums and offices, Kingdom said in a statement. The tower is part of the first phase of
Kingdom City, which is being built north of the Red Sea port city.
83
The Kingdom Tower and Kingdom City, estimated to cost 75 billion riyals and to take around 10 years
to complete, are among other projects to transform Jeddah into a city with high rise buildings to
rival Dubai. It is said that an elevator ride from the ground to the top takes about 12-minutes, but
we didnt know that the entire structure would include 59 elevators with five of those being doubledeck elevators.
Prince Alwaleed, a nephew of Saudi King Abdullah, said the Jeddah tower would eventually top
1,000 metres, but the final height is a closely guarded secret.
Building this tower in Jeddah sends a financial and economic message that should not be ignored,
Prince Alwaleed told reporters. It has a political depth to it to tell the world that we Saudis invest in
our country despite what is happening around us from events, turmoil and revolutions even.
When completed, the tower would replace Dubais 828-metre Burj Khalifa as the tallest tower in the
world. The Burj Khalifa was built by Emaar Properties for a total cost of $1.5 billion. The Kingdom
Tower is still an impressive skyscraper to look at, but well reserve judgment for when we actually
see it break ground and as its floors reach into the sky.
Dubai-Palm like $500m resort planned off Qatar coast

Plans are afoot to build a semi-submerged extravagant resort project on the Qatar coast that will
cost a massive $500 million. The Amphibious 1000, which will be built in the middle of a marine
reserve, is designed by the Italian firm Giancarlo Zema Design Group. The project will feature both
land and sea developments including four giant hotels with underwater rooms that resemble superyachts.
There will also be 80 "jellyfish" self-contained floating suites, with each having four floors and an
underwater "aquarium lounge". Hydrogen-powered 20 metre aluminium yachts with underwater
viewing areas will transport guests around the resort. It will extend horizontally for one kilometre
and it has a striking similarity to Dubai's Palm Island.
"It is like a big aquatic animal stretching out from the land into the sea and extends horizontally for
one kilometre thanks to two long wide arms," Giancarlo Zema said. On land there will be a museum,
floating walkways, a restaurant with panoramic views, exhibitions, aquariums and a glass tunnel that
will lead to the underwater observatory in the centre of the marine park.
Dubai 2024
Dubai's bid to host the Olympics in 2024 is completely in line with the emirate's efforts to raise its
international profile and emerge as a vibrant global city capable of hosting major events. Hosting the
Olympics is seen as the ultimate stamp of approval and shows that a city is capable of hosting a
complex global event, across multi-disciplines that bring together the city's political, economic, social
and leisure capabilities to the fore. For the duration of the event, the host city would have the entire
84
world as a captive audience and it is a once-in-a-lifetime opportunity for the city to put all its
greatest attractions and capabilities on display. That sounds like something Dubai would thrive in.
But while the event may give the emirate just the fillip it needs, it would also raise interesting
questions on how the emirate will fund its Olympic-related investment needs.
Hosting the Olympics is as much about 'hard' infrastructure and economic acceleration as it is
about 'soft' stuff such as national pride and raising the host city's profile on the global scale.
Dubai's decision to bid for the 2024 Olympics is bold and ambitious - and suggests that after a couple
of years of lack of self-confidence, the city is once again looking to regain its status as the region's
most dynamic city.
Doha's winning bid - though not without its controversy - also shows Dubai that it can be done. No
Middle East country had ever hosted the Football World Cup before - the greatest single-sport event
in the world - and now Dubai's 2024 bid could well make it the first Middle East country to host the
Olympics - the biggest sporting spectacle on earth.
Dubai needed a stimulus and a higher aspiration for the city to revive its glorious years of can-do,
will-do attitude and this bid will be a leaf from the old Dubai book.
Hopefully though, this time it will not be a mad frenzy with poor legal and financial frameworks and
un-coordinated financing that led to the almost-scandalous downfall in real estate and other sectors
in Dubai.
A PriceWaterHouseCoopers study on Dubai's bid concludes that as much of 70% of the 'hard'
infrastructure was already in place or planned, noted a National Olympic Committee of the United
Arab Emirates.
North Africa, a Market worth More than 30 Billion Euros

The development policies adopted by governments in the area envisage massive investments in
infrastructures and tourism. The construction of more than 1 million homes is scheduled.
North Africa is a market experiencing net growth and the development policies adopted by
governments in the area envisage major investments in infrastructures roads, railways and
tourism, not only with villages and hotels but also new ports and airports. Construction is envisaged
of more than 1 million homes, business activities, prisons, schools and much more. All this creates
enormous opportunities for Italian construction companies.
In 2008 the construction market in Africa as a whole was worth about 167 billion Euros; in the
same year, the Italian market came to around 180. In the area of French-speaking countries
Algeria, Morocco and Tunisia the 2008 figure was 30.5 billion. The most recent analysis indicates
growth of 4.9% in 2009 and 2010: distinctly against the trend world-wide.
85
Algeria alone has invested 145 billion dollars over the last three years in infrastructures and a
growing number of Italian companies are present on the market. The Government in Algiers
recently approved a plan that will be implemented between 2010 and 2014 for the construction of
popular homes, schools, hospitals, roads and railways involving an investment of 286 billion
dollars. The list of projects indicated by the Government envisages the construction of schools,
health facilities, popular homes, the extension and modernisation of the road and railway network
in the country, ports and airports and major efforts to upgrade the water distribution and
procurement network.
These projects are envisaged: construction or modernisation of 5 thousand schools and 1 million
university rooms, the construction of 1,500 health facilities, 2 million new homes, 80 stadiums and
400 swimming pools. 220,000 new connections to the natural gas network, especially in rural areas
of the country. 35 new dams, 25 large pipelines, 34 new water depuration stations, 8 new
desalination plant. 2 new urban arteries (Rocades) in Algiers, an interior motorway (Autoroute des
Hauts Plateaux) parallel to the East-West motorway, of about 1,200 km, a further 830 km of
motorway connections, as well as 3,000 km of new roads, modernisation and renovation work on
another 8,000 km of roads. Production of 20 new fishing ports, re-qualification of 25 commercial
ports and container terminals, extension of the countrys 4 main ports. Modernisation and
restructuring of 10 airports.
In Morocco, the development of several important infrastructural projects is well underway:
construction of ports and airports, railways, roads and motorways for a state investment estimated
at 10 billion. The construction of roads and motorways will see ADM (Autoroutes du Maroc) set
aside 3 billion by 2015 to ensure by that date the construction of 1,500 Km of new sections of road.
The railway sector, managed by ONCF (Office National des Chemins de Fer), has envisaged for its
coming business plan (2009-2013) about 3 billion, a large portion of which will go to the
construction of the Knitra-Tangiers high-speed section. Moreover, an investment of 1.8 million is
envisaged for the development the tram system in Casablanca, Rabat-Sal and the RER line between
Mohammedia and Nouacer. A further sum of 320 million is envisaged for the airports serving Fs,
Rabat and Oujda (ONDA, Office National des Aroports).
This rapid development in the construction of homes and urban re-qualification creates enormous
potential in the sector, where Italy can play a major role. Italian technology is held in very high
regard and products have a good quality/price ratio. Bearing in mind the numerous projects to be
completed 2010-2012, the sectors where Italy could well improve its penetration are property with
new materials and the hotel field. The latter segment enjoys a cardinal role in the economic
development of Morocco, given the need to meet growing demand for homes, offices and tourism
facilities, as well as to develop and enhance infrastructures. The constant development of the
building sector in recent years should inasmuch maintain the same rhythm for the next decade.
Libya has also seen authorities in Tripoli launch a huge infrastructural development
programme (funded to a great extent by petroleum income accumulated in recent years) that is by
now vital for a country recently re-opening its doors to international markets and called upon to
tackle the challenges of a globalised and extremely dynamic economy. On the other hand, the recent
normalisation of diplomatic relationships between Libya and the European Union continues to
86
arouse growing interest among international investors, which is further stimulated by the
encouraging economic performance.
North Africa is a promising market, yet much is still to be done for alignment with European
standards. Labour is one of the discussion themes and training programs have also already been
launched in these countries for the construction sector. The way ahead is long since trainers
themselves have to be trained. Yet in the future it may be possible for Italian companies to operate
in Morocco or Tunisia, for example, and rely on already qualified local labour aware of the safety and
quality standards of Italian companies.
Mena Holding Group plans bond sales to fund $24bn project

Mena Holding Group, a Kuwait-based construction company, plans to take loans and sell bonds to
help finance a $24.2 billion satellite city it aims to build in Egypt.
The Ayaat City will be built on an area of 1.9 million sq m in October City, about 38km southwest of
Cairo, and will cost us about 140 billion Egyptian pounds ($24.2 billion) over 20 years, chief
executive officer Nasser Mogawer said. The city will include universities, an airport, malls, hospitals
and light industries amongst many other utilities. Since this is a huge project, we cannot and will
not rely solely on bank loans for financing. A number of alternatives will be used to finance including
issuing bonds, selling sukuks, offering shares to the public of newly formed companies as well as
forming partnerships. Some facilities, such as the airport, will be constructed in the form of a buildoperate-and-transfer agreement, Mogawer said. Mena Holding, a unit of International Holding
Projects Group, directly and indirectly holds about 33 percent of Egyptian Kuwaiti Holding Co., which
owns the Ayaat City project.
Qatar leads GCC infrastructure projects

Qatar is on course to lead the Middle East Gulf region in terms of infrastructure projects for
the next four years, despite a massive 22 percent drop in construction jobs last year.
By 2014, Qatar would have outperformed all other GCC countries. Over the past three years, Qatar
has seen massive growth that was hampered by a drop in construction last year with the sector's
value falling to $7 billion. However, despite that, it is still one of the most prosperous markets in the
Middle East.
The Q3 Infrastructure Report stated that "despite these figures, BMI is still optimistic that Qatar will
outperform other countries in the region - in the short term, the low base effects from 2009 will
drive high growth in 2010 (forecast at 17 percent year-on-year).
"Over the next five years, growth is expected to average 9.9 percent between 2010 and 2014."
Business Monitor International also added that its belief in Qatar stemmed from government
87
investment plans that would see 36.9 percent of the 2010/2011 fiscal budget ($11.9 billion)
allocated to major capital projects.
Major infrastructure projects would include the $9 billion New Doha International Airport, the $7
billion New Doha Port project, the $13 billion Qatar-Bahrain Causeway, the $17 billion development
of a national rail network, as well as a handful of power and water plants.
"The country's comfortable fiscal position will enable it to continue to allocate large sums to the
infrastructure sector," the report said. "Strong project finance and infrastructure business
environment ratings means the country will continue to attract private investors to its infrastructure
sector." The BMI noted that it was the government's support for infrastructure projects that was
almost solely responsible for Qatar's growth in the sector.
88
5.4 WORLD STEEL FORECAST 2011 & 2012
worldsteel forecasts that apparent steel use will increase by 5.9% to 1,359 mmt in 2011, following
13.2% growth in 2010. In 2012, it is forecast that world steel demand will grow further by 6.0% to
reach a new record of 1,441 mmt.
This forecast suggests that by 2012, steel use in the developed world will still be at 14% below the
2007 level whereas in the emerging and developing economies, it will be 38% above. In 2012, the
emerging and developing economies will account for 72% of world steel demand in contrast to 61%
in 2007.
The worldsteel Economics Committee met in Beijing in March 2011 to discuss the SRO, just before
the natural disaster in Japan. The forecast has not been revised yet due to the difficulty of assessing
the impact of the earthquake and tsunami.
Commenting, Daniel Novegil, Chairman of the worldsteel Economics Committee said, 2010 saw a
steady recovery of steel demand which began in the second half of 2009 driven by stimulus packages
globally, the resilience of emerging economies and an overall market recovery. In 2011, we expect to
see a further 5.9% growth in world steel demand.
Our forecast is based on a stable and steady recovery of the world economy. There are however
uncertainties deriving from financial fragilities in Europe, unrest in some oil producing countries in
the Middle East and the earthquake in Japan, which could have a negative impact on the recovery
and thereby affect steel demand. At our worldsteel board meeting last week the industry again
expressed its condolences and support to its Japanese members.
Chinas apparent steel use in 2011 is expected to increase by 5.0% to 605 mmt following 5.1%
growth in 2010. Given the pace of steel production in the first quarter of 2011, Chinese apparent
steel use could be even higher. However, it is expected that the Chinese governments efforts to cool
down the overheating economy, particularly the real estate sector, will impact Chinese steel demand
somewhat later this year. In 2012, Chinese steel demand is expected to maintain 5.0% growth, which
will bring Chinas apparent steel use to 635 mmt.
India is expected to show strong growth in steel use in the coming years due to its strong domestic
economy, massive infrastructure needs and expansion of industrial production. In 2011, Indias steel
use is forecast to grow by 13.3% to reach 68.7 mmt. In 2012, the growth rate is forecast to
accelerate further to 14.3%.
The rebound in apparent steel use in the US is forecast to continue with growth of 13.0% to 90.5
mmt in 2011, reflecting the second round of quantitative easing and new fiscal policy initiatives that
gave a boost to economic activities and sentiments in industrial and energy markets. Construction
markets remain at depressed levels. US is expected to grow by 6.9% to 96.7 mmt, bringing it back to
90% of the 2007 level. For NAFTA as a whole, apparent steel use will grow by 10.9% and 6.3% in
2011 and 2012 respectively.
89
In Central and South America, apparent steel use is forecast to grow by 6.6% in 2011 to 48.8 mmt. In
2012, the regions apparent steel use is forecast to grow by 8.3% to 52.8 mmt, almost 30% higher
than the 2007 level.
Apparent steel use in the EU is forecast to grow by 4.9% to 151.8 mmt in 2011 on the back of an
export-driven industrial rebound. The largest economy euro zone countries like Germany and France
are forecast to enjoy solid recovery in steel use mainly in the automotive and machine building
sectors. Other economies (i.e., Greece, Ireland, Portugal and Spain) are projected to show slow
growth in steel use particularly as a result of weak construction activity. In 2012, the region will see
an increase of 3.7% to 157.5 mmt in its apparent steel use, bringing it back to 80% of the 2007 peak.
Japans steel use was expected to decline by -1.2% to 63 mmt in 2011 as stimulus measures expire.
However, the forecast was prepared before the natural disaster and it is too early to fully grasp the
implications of these recent tragic events. In 2012, apparent steel use in Japan was forecast to
remain around 63 mmt, 78% of the 2007 level. The impact of the earthquake and tsunami points to
a significant downward adjustment in steel use for 2011 and upward adjustment for 2012.
The recovery of steel use in the CIS has been surprisingly healthy due mainly to an unexpectedly
strong rebound from steel-using sectors in Russia. As domestic demand and business investment
continue to grow healthily in the region, apparent steel use is expected to grow by 7.5% to 52.1 mmt
in 2011 and then by 8.9% to 56.7 mmt in 2012.
Steel demand in the MENA region is expected to remain stagnant in 2011, mainly due to downward
revisions from North African countries. However, boosted by high oil prices, steel use in MENA is
forecast to resume growth in 2012 at a rate of 7.9%. Given the political situation in the region, there
are considerable uncertainties to the current forecasts.
90
SUGGESSTION
Following are some of the suggestions which I arrived during my 6 weeks
training in SAIL-ITD
The company should continuously monitor the potential market for their product.
There should be a complete idea about the competitors presence and their product mix in a
potential market.
Company should work for BRANDING of their product like Rebars and Billets in the
overseas market.
Company should open a marketing office in MENA region to push the demand of the
product.
91
Bibliography
Websites
www.sail.org
www.livemint.com
www.alibaba.com
www.metalbulletin.com
www.worldsteel.org
www.misif.org
www.arabsteel.org
www.jpc.org
Newspaper/ Magazines
Economic Times
Mint
4Ps Business & Marketing
Business World
Business Outlook
Metal Bulletin
92

Itdsailreport 120421105844 Phpapp02

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Itdsailreport 120421105844 Phpapp02

Загружено:

Авторское право:

Доступные форматы

SUMMER TRAINING PROJECT REPORT

Submitted for the Partial fulfilment of the requirement

Under the Supervision of

CENTRE FOR MANAGEMENT STUDIES

Mena Market Analysis for Steel Billets and Rebars

Mena Market Analysis for Steel Billets and Rebars

I also wish to express my gratitude to the management of SAIL-INTERNATIONAL TRADE DIVISION,

Mena Market Analysis for Steel Billets and Rebars

Mena Market Analysis for Steel Billets and Rebars

environment makes it difficult to ignore such market.

Mena Market Analysis for Steel Billets and Rebars

Mena Market Analysis for Steel Billets and Rebars

1.1 Export Potential: Brief introduction of Issues

1.2 Export product of Steel Authority of India Limited

1.3 Scope of Study

1.4 Objectives of Research Study

1.5 Research Methodology

2.2 Indian Steel Scenario

2.3 A glance at Steel Authority of India Limited

2.4 Products of SAIL

2.5 Plants of SAIL

2.6 Main activities of SAIL

2.7 Ownership and Management

2.8 SAIL-International Trade Division (ITD)

2.9 SAILs corporate plan

2.10 SAIL FY 11 Report

Mena Market Analysis for Steel Billets and Rebars

3.2 Major steel Companies in MENA

3.3 MENA steel scenario

3.4 Steel Billet: Product introduction

3.5 Steel Manufacturing process

3.6 World Steel Billet Scenario

3.7 Black Sea Billet pricing

3.8 Turkey Billet and Scrap price Comparison

3.9 Final Analysis of Turkey Market: The Competitor

3.10 Steel Billet Manufacturers

3.11 Results and discussion

4.2 List of Certifying Agency for Rebar

4.3 World rebar production

4.4 World Rebar Pricing

4.5 China Rebar Production- The Competitor

4.6 Asia Rebar Trend

4.7 MENA region steel Rebar producing Companies

4.8 MENA Apparent Steel Consumption

5.2 Turkey A Key Competitor

5.3 Major Infrastructure project in MENA

5.4 World Steel Forecast

Mena Market Analysis for Steel Billets and Rebars

1.1 EXPORT POTENTIAL: A BRIEF BACKGROUND OF ISSUES

EXPORT POTENTIAL COVERS

Estimating the Export Potential usually involves the following attributes:

RESREARCH TECHNIQUES OF ESTIMATING EXPORT POTENTIAL

DESK RESEARCH/SECONDARY DATA

Mena Market Analysis for Steel Billets and Rebars

A. Desk Research uses secondary data from:

FIELD RESEARCH OR PRIMARY RESEARCH

Mena Market Analysis for Steel Billets and Rebars

1.2 EXPORT POTENTIAL OF PRODUCTS OF STEEL AUTHORITY OF INDIA

1.3 OBJECTIVES OF RESEARCH STUDY

To Study the product line of SAIL

Mena Market Analysis for Steel Billets and Rebars

1.3.2 TO STUDY THE EXPORT POTENTIAL OF REBARS FROM SAIL

To study the product offering of sail in terms of Rebar.