SLIDE 2 12/05/2015 2 Output Indices of Raw Steel in Kazakhstan for 2005-2014
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6.8 7.0 6.4 6.4 6.3 6.2 5.9 5.7 4.4 4.2 4.8 4.3 4.2 4.4 4.8 3.8 3.5 4.0
3.9 3.6 4.1 3.4 3.5 3.5 [ЗНАЧЕНИЕ] 3 3.3 3.6
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Designed Capacity and Output of Raw Steel, tons
Capacity Output
- There is 10% decrease in steel industry output,
8% in consumption and 16% in capacity over the last 10 years.
- However, the production in 2014 increased for
8.3%
- Underuse of production capacities: 67.9%,
(worldwide average 80%)
Commentary Conclusions
- Covering a ten-year period an average steel output
- f 3.95 mln tons provides an excess capacity of 2.35
mln tons.
- Steel output to a greater extent depends on a
product demand at local and international markets as well as on investments in modernization of inefficient and energy-consuming capacities.
- The industry is marked by absolete of assets, poor
performance and high energy consumption.
Consumption
Source: CS MNE RoK, Calculation: KIDI JSC
Asset Base Arrangement; Industry Issues
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Карагандинская обл. ЗКО Мангистаус-кая обл. ВКО Акмолинская обл. Кызылординская обл. Актюбинская обл. Атырауская обл. Костанайская обл. СКО Павлодарская обл. Алматинская область Жамбыльская обл. Existing Product Export Directions Existing Railway Traffic
Key steel productions are concentrated in Central and North Kazakhstan. Key export directions – Russia, China, Iran Map of Key Metal Ores and Non-Ferrous Metal Ores Production Areas. Transportation Directions Low utilization of capacity Heavy wear of capital assets High energy-consumption and labor- intensive production (1.5-1.8 times higher) Land-locked country Relatively poor infrastructure Lack of long term funds Lack of qualified labor Mono cities
Key Issues
China Russia Iran
Source: KIDI JSC
Main Conclusion
While helping the industry to restructure and modernize, considering the social factors, the Government does support local enterprises providing relatively small advantages and preferences
