India Metals Report Q1 2012

Indian metals production will hit headwinds in 2012 as market growth moderates in the face of a slowdown in the automotive industry while producers struggle to secure raw material and energy supplies for their operations, according to BMI’s latest India Metals Report.
Indian crude steel output grew 5.6% to 72mn tonnes (mnt) in 2011 with declining activity in the automotive market coupled with disruptions to raw material supplies undermining growth. Meanwhile, BMI estimated consumption growth falling to 6.6% (68.7mnt) in 2011. Finished steel consumption is projected at just under 100mnt in 2016. Factors depressing demand growth include the effects of higher interest rates on the automotive and construction sectors, the country’s top steel using industries.
Aluminium consumption was estimated at 1.6mnt in 2010 and is set to more than double over the next five years due to growth in domestic manufacturing. BMI has reduced its growth forecast for 2011 from 10.0% to 3.2% with output at 1.66mnt. A decline in activity in the automotive market coupled with raw materials supply problems and continued delays in capacity expansion will limit growth to 2.7% in 2012.
Vedanta’s expansion project, which is raising its smelting capacity from 1.6mn tonnes per annum (tpa) to 2.5mn tpa, along with a recovery in the aluminium market and hope that constraints to growth will be alleviated, should support 35% growth in primary aluminium output to 2.3mnt in 2013 with production set to exceed 3mnt by 2016. We believe that consumption growth declined to 8.6% in 2011, a downward revision from the 10.0% we previously forecast, due to economic slowdown, particularly its effects on the automotive industry. At the same time, we have raised our forecast for net exports from 132,000 tonnes to 261,000 tonnes in 2011. Lower levels of domestic consumption than previously forecast should ensure that India maintains a trade surplus in aluminium over the medium term and does not descend into deficit. Indian refined lead output grew 5% to 175,350 tonnes in 2011 as Vedanta subsidiary Hindustan Zinc Ltd’s (HZL) new 100,000tpa Dariba complex, commissioned in Q311, bolstered output. However, recyclers will retain a significant share of production. By 2012, Indian lead smelting will have reached the limit of capacity while consumption will continue to rise, forcing the market to depend on imports, which should reach 75,000 tonnes by 2016.
Indian refined zinc output grew 11% to an estimated 778,000 tonnes in 2011, leading to an exportable surplus of around 85,000 tonnes. Domestic demand rose 8.6% to 616,000 tonnes in 2011 and is set to reach 896,000 tonnes by 2016, an increase of over 45% over the period. Production growth strengthened in 2011 after industry leader HZL brings its Rajpura Dariba smelter up to full capacity. India will remain balanced between supply and demand with modest net exports over the next five years. Beyond 2011, the medium-outlook for consumption is broadly positive.
Copper refinery output rebounded in 2011 with growth of 15% to 744,600 tonnes largely correcting the downturn in 2010. A positive long-term outlook means that Indian copper prices are likely to remain well supported and that the decline in growth likely to be witnessed in 2012 will be temporary. Indeed, the sustained growth of the Indian market will help support international copper prices. The expansion of Sterlite’s capacity should push output to 1.2mnt by 2016. This should make India a significant exporter of refined copper, with exports rising to 367,000 tonnes in 2016.

[Studien Infos ausblenden]

Executive Summary 5
SWOT Analysis 7
India Political SWOT 7
India Economic SWOT 8
India Business Environment SWOT 9
Global Market Overview – Steel Forecast 10
Table: BMI’s Steel Forecast 10
Table: Steel Price Data 11
Commodities Forecast 16
Copper 16
Aluminium 17
Lead 18
Nickel 19
Tin 20
Zinc 21
Regional Overview 22
Table: Top 10 Asian Steel Producers, 2009 22
Industry Forecast Scenario 26
Steel 27
Table: India’s Steel Industry, 2008-2016 (’000 tonnes, unless otherwise stated) 30
Aluminium 32
Table: India’s Primary Aluminium Consumption And Production, 2010-2016 (’000 tonnes) 32
Lead 36
Table: Refined Lead Consumption and Production, 2010-2016 (‘000 tonnes) 37
Table: All Lead Capacity In India, 2010-2014 38
Zinc 39
Table: Refined Zinc Consumption And Production 2009-2016 (‘000 tonnes) 40
Table: All Zinc Capacity In India, 2010-2014 41
Copper 42
Macroeconomic Forecasts 44
Table: India – GDP Contribution To Growth, 2008-2016 46
Competitive Landscape 47
Steel 47
Table: Crude Steel Production Capacity By End 2012 47
Table: Indian Steel Market Share By Major Players (%) 49
Table: Major Indian Steel Projects’ Status, End-2010 52
Aluminium 58
Table: Aluminium Smelters In India, 2010 63
Regulatory Landscape 64
Company Profiles 66
National Aluminium Company (NALCO) 66
Steel Authority of India Ltd (SAIL) 68
Vedanta Resources 69
Global Assumptions 72
Table: Global Assumptions, 2009-2015 72
Table: Global And Regional Real GDP Growth, 2010-2013 (% y-o-y) 73
Table: Selected Developed Market Exchange Rates, 2010-2013 (average) 73
Table: Selected Emerging Market Exchange Rates, 2010-2013 (average) 74
Developed States 74
Table: Developed States Real GDP Growth Forecasts, 2010-2013 (% y-o-y) 75
Emerging Markets 76
Emerging Markets 76
Table: Emerging Markets Real GDP Growth Forecasts, 2010-2013 (% y-o-y) 77
Consensus 78
Table: Real GDP Growth Consensus Forecasts, 2011-2012 (% chg y-o-y) 78
Country Snapshot: India Demographic Data 79
Section 1: Population 79
Table: Demographic Indicators, 2005-2030 79
Table: Rural/Urban Breakdown, 2005-2030 80
Section 2: Education And Healthcare 80
Table: Education, 2002-2005 80
Table: Vital Statistics, 2005-2030 80
Section 3: Labour Market And Spending Power 81
Table: Employment Indicators,1996-2001 81
Table: Consumer Expenditure, 2000, 2007-2012 (US$) 81
Table: Average Annual Manufacturing Wages, 2000, 2006-2012 82
BMI Methodology 83
How We Generate Our Industry Forecasts 83
Cross Checks 83
[Inhaltsverzeichnis ausblenden]