B R I C S FOUNDRY FORUM RUSSIA 2015 B R A Z I L and Foundry - - PowerPoint PPT Presentation

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B R I C S FOUNDRY FORUM RUSSIA 2015 B R A Z I L and Foundry - - PowerPoint PPT Presentation

B R I C S FOUNDRY FORUM RUSSIA 2015 B R A Z I L and Foundry Industry Overview / Trends Remo De Simone President Brazilian Foundry Association - ABIFA M AIN TOPICS 1) Brazil in figures 2) Infrastructure and Raw M aterial 3) Cast M


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SLIDE 1

B R I C S

FOUNDRY FORUM

RUSSIA 2015

B R A Z I L and Foundry Industry Overview / Trends

Remo De Simone President Brazilian Foundry Association - ABIFA

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SLIDE 2

M AIN TOPICS 1) Brazil in figures

2) Infrastructure and Raw M aterial 3) Cast M etal in Brazil 4) Foreign Trade 5) Trends – Brazil and Foundry Industry

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SLIDE 3

BRAZIL IS THE LARGEST COUNTRY IN SOUTH AMERICA REPRESENTS:

  • 48% IN TERRITORY
  • 51% OF POPULATION
  • 48% OF GDP

ONLY BRAZIL AND ARGENTINA HAVE A ESTABLISHED FOUNDRY INDUSTRY. BRAZIL - 2014 POPULATION: 200.4 M AREA: 8.5 M km2 GDP: 2.35 TRILLION US$ 7th WORLD ECONOMY FLEET OF VEHICLES: 41.7 M

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SLIDE 4

Brazil – GDP Evolution

Billion US$/ ano

560 509 560 670 893 1,108 1,396 1,695 1,667 2,209 2,613 2,412 2,391 2,353 1,809* 500 1.000 1.500 2.000 2.500 3.000 2001 2003 2005 2007 2009 2011 2013 2015 * 2015 estimated

Source: BACEN

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SLIDE 5

Brazil – GDP Evolution (%)

without inflation of the period

* estimated 4,4 1,3 3,1 1,2 5,7 3,1 4,0 6,0 5,0

  • 0,2

7,6 3,9 1,8 2,7 0,1

  • 1,8

0,2

  • 4
  • 2

2 4 6 8 10

Source: BACEN

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SLIDE 6

Brazil – Inflation Evolution (%)

accumulated per year

* estimated 6,0 7,7 12,5 9,3 7,6 6,7 3,1 4,5 5,9 4,3 5,9 6,5 5,8 5,9 6,4 9,3 5,4 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0

Source: BACEN

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SLIDE 7

Participation of the Industry in GDP (%)

14,0 15,2 14,4 17,9 16,7 16,6 15,0 13,9 11,5 10,9 0,0 5,0 10,0 15,0 20,0 2000 2002 2004 2006 2008 2010 2012 2014

Source: IBGE/ABIFA

0,41 0,49 0,63 0,61 0,57 0,65 0,41 0,51 0,47 0,49 0,36 0,00 0,10 0,20 0,30 0,40 0,50 0,60 0,70 2000 2002 2004 2006 2008 2010 2012 2014

Manufacturing Industry Foundry Industry

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SLIDE 8

World Ranking – GDP

(Trillion US$)

8

2014 2015 ( * ) 1st USA 17.419 18.125 1st 2nd China 10.380 11.212 2nd 3rd Japan 4.616 4.210 3rd 4th Germany 3.860 3.413 4th 5th UK 2.945 2.853 5th 6th France 2.847 2.470 6th 7th BRAZIL 2.353 2.308 7th INDIA 8th Italy 2.148 1.843 8th 9th INDIA 2.050 1.809 9th BRAZIL 10th Russia 1.857 1.615 10th Canada ( * ) PREVIEW Source: BACEN

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SLIDE 9

M AIN TOPICS

1) Brazil in figures

2) Infrastructure and Raw M aterial

3) Cast M etal in Brazil 4) Foreign Trade 5) Trends – Brazil and Foundry Industry

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SLIDE 10

Electric Power Hydro Generation is the main source in Brazil

95.7 GW Install Capac

Source: ANEEL/FIRJAN

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SLIDE 11

Natural Resources

  • Electricity

for its continental dimensions, hydro generation is the main source in Brazil

  • Iron Ore

Brazil is the third largest producer and also has the third reserve of iron ore

  • Bauxite Ore

Bauxite ore (aluminum) - also in this case, we are the third largest producer and have the third reserve

  • f bauxite ore for the production of primary

aluminum

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SLIDE 12

Brazil has a surplus in its main raw materials

10 20 30 40 50 60 70 80 90 100 Pig Iron Aluminum Ferroalloys

100 100 100 50,3 36,5 40

production exports

Source: ABAL/ABRAFE/SINDIFER

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SLIDE 13

M AIN TOPICS

1) Brazil in figures 2) Infrastructure and Raw M aterial

3) Cast M etal in Brazil

4) Foreign Trade 5) Trends – Brazil and Foundry Industry

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SLIDE 14

Cast metal world production (ton)

2013 2012

  • 1 º CHINA

44,500,000 42,500,000

  • 2 º USA

12,250,000 12,824,960

  • 3 º INDIA

9,810,000 9,344,400

  • 4 º JAPAN

5,538,037 5,342,837

  • 5 º GERMANY

5,186,727 5,214,114

  • 6 º RUSSIA

4,100,000 4,300,000*

  • 7 º BRAZIL

3,071,400 2,859,898

  • 8 º KOREA

2,562,000 2,435,800

  • 9 º ITALY

1,970,968 1,959,680

  • 10 o FRANCE

1,748,166 1,800,156

Source: Modern Casting/Dec 2014 * 2011 data

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SLIDE 15

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Brazil 3.087 3.250 3.355 2.297 3.241 3.344 2.860 3.071 2.737 2.450 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000

Thousand ton

2015 preview

Source: ABIFA

The crisis of 2008-09 had a strong effect on our country Production 2006-15

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SLIDE 16

quick analysis of cast metal production in Brazil

Total production 2,737.2 th ton (2014)

Non ferrous 217.5 th ton

Source: ABIFA

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SLIDE 17

61% 34%

South and Southeast Region in Brazil represent 95% of all production

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SLIDE 18

Sales of casting are concentrated in automotive industry

AUTOM OTIVE 58% INFRASTRUC 6% CAP GOODS 13% EXPORTS 15% SIDERURGY 2% OTHER 6%

Source: ABIFA

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SLIDE 19

Worldwide Vehicle Production

(thousand units)

2013

  • 1 º China

22,117

  • 2 º USA

11,046

  • 3 º Japan

9,630

  • 4 º Germany

5,718

  • 5 º South Korea

4,521

  • 6 º India

3,881

  • 7 º Brazil

3,712

  • 8 º Mexico

3,052

  • 9 º Thailand

2,457

  • 10 o Canada

2,380

Source: ANFAVEA

5th automotive world market

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SLIDE 20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Brazil 2612 2980 3216 3183 3382 3416 3403 3713 3146 2500 500 1000 1500 2000 2500 3000 3500 4000

Thousand unit

Brazil - vehicle production

Source: ANFAVEA - Brazil

2015 preview

(15,3)% (20,5)%)

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SLIDE 21

Countries of Latin America (Argentina, Brazil and M exico) have a great dependence of Automotive Industry

PARTICIPATION IN PRODUCTION ARGENTINA 57% BRAZIL 58% M EXICO 75 – 80%

Source: ABIFA, CIFRA, SMF

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SLIDE 22

Shows a potential to be exploited to reach the developed countries (2014)

INHABITANTS/ VEHICLE ARGENTINA 3.7 BRAZIL 5.4 M EXICO 3.6 INHABITANTS/ VEHICLE GERM ANY 1.7 ITAL Y 1.6 SPAIN 1.9 FRANCE 1.7 USA 1.3

Source: ANFAVEA

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SLIDE 23

M AIN TOPICS

1) Brazil in figures 2) Infrastructure and Raw M aterial 3) Cast M etal in Brazil

4) Foreign Trade

5) Trends – Brazil and Foundry Industry

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SLIDE 24

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Exports 1095 1374 1354 1494 763 1185 1521 1362 1233 1216 1150 Imports 159 300 559 808 1926 1096 1260 2061 2250 1714 400

500 1000 1500 2000 2500

Evolution of foreign trade in Brazil unit: M illion US$ (2005-15

2015  preview

Source: ABIFA

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SLIDE 25

Brazil  55% of total exports going to EUA – US$ - % Iron + Steel + Non Ferrous

Source: ABIFA,

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SLIDE 26

Brazil  27% of total imports come from ASIA – US$ - % Iron + Steel + Non Ferrous

Source: ABIFA,

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SLIDE 27

M AIN TOPICS

1) Brazil in figures 2) Infrastructure and Raw M aterial 3) Current Situation 4) Cast M etal in Brazil

5) Trends – Brazil and Foundry Industry

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SLIDE 28

Necessary Investments in Foundry Industry in Brazil in the next years (2015 – 2019)

From 2015 until 2019 the Foundry Sector is expected to invest 880 million dollars to increase the production of 400 thousand tons needed to meet the growth of sectors such as Automotive, Railway, M ining, Wind Generation and other.

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SLIDE 29

Production and installed capacity needed to meet the expected demand in Brazil (unit: thousand ton)

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SLIDE 30

Brazilian Foundry Association – ABIFA

  • Av. Paulista, 1274 – 20o andar

01310-925 – São Paulo – SP - Brazil Ph: (+55 11) 3549-3344 and Fac (+55 11) 3549-3355 Remo De Simone – president presidencia@abifa.org.br www.abifa.org.br Sept/ 2015

THANK YOU !

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SLIDE 31

Source: ABAL - Brazilian Aluminum Association ABIFA – Brazilian Foundry Association ABRAFE – Brazilian Ferroalloys Association ANEEL – National Agency of Electricity (Brazil) ANFAVEA – National Automobile M anufactures Association (Brazil) BACEN – Central Bank of Brazil CIFRA – Argentina´s Chamber of M etalcaster FIRJ AN – Federation of Rio de J aneiro Industries IBGE – Brazilian Institute of Geography and Statistics SINDIFER – Producers of Pig Iron Trade Union (Brazil) SM F – M exican Society of M etalcasters