Jun YAO, BAOSTEEL CHINA. Perspectives on China's Role in Tube & Pipe

Transcription

1 Jun YAO, BAOSTEEL CHINA Perspectives on China's Role in Tube & Pipe

2 Contents: 1. Chinese Steel Industry Profile 2. Chinese Steel Pipe & Tube 3. Quality Upgrade Steel Pipe & Tube 4. Challenges Facing Chinese Steel Pipe 5. Baosteel Profile 2

3 1 Chinese Steel Industry Profile 3

4 CHINA Largest Steel Producing & Consuming Country The largest steel Consuming Country since 1994 The largest steel Producing Country since Crude Steel Output by Country Japan, 111, 7% USA, 87, 5% China Crude Steel Ouput & Share in the World mmt CAGR 20% CAGR 8% % China, 779, 49% India, 81, 5% 577 CAGR 7% Russia, 69, 4% World: 1607 unit: mmt Others, 270, 17% Ukraine, 33, 2% South Korea, 66, 4% Germany, 43, 3% Turkey, 35, 2% Brazil, 34, 2% 15% 5% 8% Data: worldsteel 4

5 CHINA The Largest Iron Ore Importer China Iron Ore Imports mmt Iron Ore Imports Ratio of Dependence on Import Share of Seaborne Iron Ore 72% 72% 63% 80% 70% 60% 41% % % 40% 30% 20% 10% 0% Data: CISA, worldsteel 5

6 CHINA Net Steel Exporter Since 2005 China was the biggest steel importer in 2003 China Steel Trade mmt China Exports Share of Steel Products mmt Steel product exports Exports to Output 16% 14% 12% % 8% 6% -40 Imports 20 4% Exports Net Imports % 0% Data: CISA 6

7 2 Chinese Steel Pipe & Tube 7

8 CHINA Largest Steel Pipe Producing Country Total output of Steel Pipe: MMT in 2013 Unit: 10 Thousand Metric Ton 8

9 Largest Steel Pipe Producing Country CHINA Top 10 Steel Pipe Output Province in 2013 Unit: 10 thousand Metric Ton 9

10 Largest Steel Pipe Producing Country Top 10 Seamless Pipe Output Province in 2013 CHINA Unit: 10 thousand Metric Ton Top 10 Welded Pipe Output Province in

11 Largest Steel Pipe Consuming Country CHINA Consumption of Steel Pipe: MMT in 2013 Unit: 10 ( thousand 万 t) Metric Ton (%) Pipe Output 钢管产量 表观消费量 Consumption 产量增速 Output Increase Ratio Consumption Increase Ratio 表观消费量增速

12 Largest Steel Pipe Consuming Country CHINA Seamless Pipe Consumption: MMT in 2013 ( 万 t) Unit: 10 thousand Metric Ton 无缝钢管产量 Seamless Output 表观消费量 Consumption 产量增速 Output Increase Ratio Consumption Increase Ratio 表观消费量增速 (%)

13 Largest Steel Pipe Consuming Country CHINA Welded Pipe Consumption: MMT in 2013 Unit: 10 ( thousand 万 t) Metric Ton (%) 焊接钢管产量 Welded Output 表观消费量 Consumption 产量增速 Output Increase Ratio 表观消费量增速 Consumption Increase Ratio 0 13

14 CHINA Steel Pipe Export Unit: 10 thousand Metric Ton ( 万 t) (%) 钢管出口 Export Qty 增速 Increase Ratio 14

15 3 Quality Upgrade Steel Pipe & Tube 15

16 CHINA Steel Pipe Quality Upgrade -- OCTG CATALOGUE Casing- Ultradeep Wells TPCO: TP140V TP150V BAOSTEEL: BG-140 BG-150 CSST: CS140 Mill and Products Low Temp-high toughness OCTG TPCO: TP80L~125L TP80LL~125LL BAOSTEEL: BG80L~125L Casing-high anticollapse H2S resistance OCTG H2S resistance & anti-collapse OCTG TPCO: TP80T~110T TP80TT~130TT BAOSTEEL: BG65T~125T BG80T~125TT etc. CSST: CS80T(T)~125LT(T) TPCO: TP80S~125S TP80SS~110SS BAOSTEEL: BG-55S~110S BG-80SS~110SS CSST: CS80S(S)~110S(S) TPCO: TP80(T)S~110(T)S TP110(T)SS BAOSTEEL: B80TS~110TS B80TTS ~110TTS 16

17 CHINA Steel Pipe Quality Upgrade -- OCTG CATALOGUE CO2 resistance OCTG CO2 resistance+low H2S or CO2+Clresistance OCTG CO2+H2S+Clresistance OCTG Heavy Oil thermal OCTG Mill and Products TPCO: TP80NC13Cr TP110NC-13Cr BAOSTEEL: BG95-13Cr BG110-13Cr etc. CSST: CS80-13Cr TPCO: TP95-SUP13Cr P110~SUP13Cr BAOSTEEL: BG13Cr-110U BG13Cr-110S CSST: CS80-SUP13Cr TPCO: TP80NC-3Cr TP80NC-5Cr TP110NC-3Cr TP110-5Cr BAOSTEEL: BG55-1Cr BG80-1Cr BG90-1Cr BG110-1Cr BG80-3Cr BG90-3Cr BG110-3Cr CSST: CS80-1Cr CS110-1Cr CS80-3Cr CS110-3Cr Developing BAOSTEEL: G3 028 TPCO: G3 TPCO: TP90H TP100H TP110H TP120H BAOSTEEL: BG-55H BG-80H BG-110H 17

18 CHINA Steel Pipe Quality Upgrade -- LINEPIPE CATALOGUE Strain Base Design Submarine application Ultra-high Strength Sour service Mill and Products BSG:X80HD BAOSTEEL: X80HD X70HD CNPCEM: X80HD PCK: SMYS 450F(X65)(max water depth 1500m) BAOSTEEL: SMYS 450F(X65)(max water depth 1500m) CNPCEM:SMYS 450F(X65)(max water depth 1500m) BSG:X100 X90 X80 BAOSTEEL: X120 X100 X90 X80 CNPCEM:X100 X90 X80 BSG:X70MS X65MS BAOSTEEL: X70MS X65MS PCK: X65MS 18

19 4 Challenges Facing Chinese Steel Pipe 19

20 Challenges from: Excess Production Capacity Anti-Dumping No Profit Environment Protection Cost

21 CHINA Excess Production Capacity Total Capacity of Steel Pipe: 108 MMT in 2013 Unit: 10 thousand Metric Ton ( 万 t) (%) Capacity Output Capacity Utiliaztion 钢管产能 ( 万 t) 钢管产量 ( 万 t) 产能利用率 (%) 21

22 CHINA Excess Production Capacity Total Capacity of Seamless Pipe: 43 MMT in 2013 ( 万 t) Unit: 10 thousand Metric Ton 80 (%) 年 2009 年 2011 年 2012 年 2013 年 55 无缝管产能 Seamless Capacity ( 万 t) 无缝管产量 Seamless Output ( 万 t) Capacity 产能利用率 Utiliaztion (%) 22

23 CHINA Excess Production Capacity Total Capacity of Welded Pipe: 65 MMT in 2013 ( 万 t) Unit: 10 thousand Metric Ton 82 (%) 年 2009 年 2011 年 2012 年 2013 年 2013 年 66 焊管产能 Welded Capacity ( 万 t) 焊管产量 Welded Output ( 万 t) 产能利用率 Capacity Utiliaztion (%) 23

24 CHINA Anti-Dumping China Steel Pipe North America: U.S. Canada European Union South America: Brazil Columbia EEC: Russian Belarus Kazakhstan India: Coming soon 24

25 CHINA No Profit China Steel Pipe Manufacturer Gross Profit Margin of Steel Pipe Manufacture 25

26 Environment Protection Cost Great smog of 1952 Great smog of 2013

27 Chinese steel industry has just entered the early winter, and is yet to face its worst time ever.

28 5 Baosteel Profile 28

29 Baosteel Profile Public list of Shanghai China Environment Friendly steel mill 30 year s experience in steel industry 1 th most competitive steel mill in China 4 th largest steel complex in the world 211 th in the Fortune 500 for year million tons crude steel output per year One stop solution services for customer 29

30 Baosteel Crude Steel Production Production Volume (Million MT)

31 Figures of Baosteel Group Fortune 500 (Billion) Year Revenue No In 2013, Revenue: USD 49.2 Billion Fortune 500 Rank: 211 Credit rating: A-, A3 and A- respectively acc to Standard & Poor s, Moody s and Fitch. Investment in R&D: USD1 Billion 31

32 Baosteel Production Base in China 32

33 Baosteel Overseas Network 33

34 Product Range of Tube & Pipe Tubing, casing, drill pipe Line Pipe High pressure boiler tube Cracking Tube Low and middle pressure boiler tube Line Pipe of API SPEC 5L and DNV specification OCTG Boiler Tube Line Pipe Seamless Welded Casing Structural Pipe Tube for ship Tube for automobile Military tube Tubes for hydraulic service Tubes for gas cylinder Mechanical Tube 34

35 Baosteel Tube & Pipe Mills 35

36 One Stop Solution Layout of plant in Shanghai Steel Making Heavy Plate Seamless HFW UOE Coating Own Port 36

37 Better Steel, Better Life. THANK YOU! Jun YAO Baosteel Middle East 37