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Exploring Africa

Objective

To gain insight into the market potential of the
entire region and discuss about the previous
sales highlights and ways of further
improving market share.



Agenda
Africa: A Brief Snapshot

What lies beneath: Market Potential
Import/Demand Data
Africa Vs Rest of World

Sales Highlights
Consumer behavior (Product mix, pricing, order pattern etc.)
Month wise
Key customers/regions
Future targets

Effect of External/Macro economic factors
Nickel
Political instability
Credit CRISIS
USD Vs Local Currency

The way forward: To further explore new territories








Africa: Key Indicators
Country
GDP
USD
Growth
Rate %
S. Africa 212.8 3.7
Algeria 84.6 5.2
Egypt 82.4 4.1
Nigeria 72.1 3.6
Morocco 50 4.2
Tunisia 28.2 5.8
Sudan 21.1 6
Angola 19.5 11.1
Kenya 15.6 2.1
Tanzania 10.9 6.3
Ethiopia 8 13.1
Source: www.worldeconomy.com
Data is for 2004



Africa: How Big?
Product 2008 2009 2010
Cold Rolled 302 344 371
Hot Rolled 34 35 37
Total 336 379 408
Source: CRU, Aug 08; All figures in000 MT
HR Break up 2008 2009 2010
S. Africa 26 26 27
Egypt 4 4 4
Others 4 5 6
TOTAL 34 35 37
CR Break up 2008 2009 2010
S. Africa 162 185 200
Egypt 39 45 48
Others 100 114 123
TOTAL 302 344 371
S. Africa SS market is dominated by
local Producer Columbus (Acerinox)
Egypt is totally dependent on imports;
however price expectations are very low
and it is a major road block




Share of Imports
Import 2007
CR 77
HR 26
Total Flat 103
Import
Break up
Asia W. Europe Other
parts
of world
Total
CR 30 41 6 77
HR 13 13 - 26
Product 2007 2008 2009 2010
Cold Rolled 283 302 344 371
Hot Rolled 32 34 35 37
Total 315 336 379 408
Key Highlights:
In 2007, Out of total demand
of 283000MT (CR); imports met
only 77000MT!! (approx. 24%)
For 2008;assuming imports
grow at same rate as demand;
projected imports for CR:
82500MT (approx. 24%)
Source: CRU; Aug08
All figures in 000 MT
Table (s) showing total demand of Africa and share of imports (region wise)



Imports: Country Break up
S.No Country HSC 7219 HSC 7220
Total
(MT)
Year
of data
1 Egypt 22300 3700 26000.00 2007
2 S. Africa 22000 3900 25900.00 2007
3 Ethiopia 11000 368 11368.00 2007
4 Algeria 8273 2750 11023.00 2006
5 Morocco 6800 716 7516.00 2006
6 Sudan 3488 785 4273.00 2006
7 Tunisia 2720 237 2957.00 2007
8 Uganda 2700 35 2735.00 2007
9 Eritrea 1400 0 1400.00 2003
10 Kenya 890 495 1385.00 2007
SOURCE: United Nations Commodity Trade Statistics
Web Site: http://comtrade.un.org/db/
HS CODE 7219: SS Flat Rolled Products not under 600mm width
HS CODE 7220: SS Flat Rolled Products under 600mm width
Table shows the annual import break up for top 10 countries



Africa: The near Future
Product 2008
Q2
2008
Q3
2008
Q4
2009
Q1
CR 78 75 78 80
Projected
Imports
2008
Q2
2008
Q3
2008
Q4
2009
Q1
CR 19.5 19 19.5 20
Table showing demand data for next quarters
Source: CRU Aug 08; All figures in 000 MT
Assuming imports meet approx
25%(avg. of 2007)) of total demand;
next quarters import projections are
as follows:
Import of 2008 Q2 =25% of Demand
of 2008Q2 which comes out to be
approx. 19500MT/qtr or about
6500/month
Table showing projected import for next quarters
All figures in 000 MT
Initially we can target to increase
our share of imports and raise it to
about 5% (approx. 325MT/month)
which means about 3900MT for
entire year!!



Consumer Behavior
Country Thick
(mm)
Width
(mm)
Length
(mm)
Finish Grade FOB (Indian
Port)
USD/MT
S. Africa 0.5/0.9
/1.2/1.
5/2/2.5
1250/slit
coils
of 112/95
COILS 2B J4/304 J4:2200
304:3000
Egypt 0.5/0.6
/0.7/0.
8/1.0/1
.2/1.5/
2/2.5/3
1000/1250 2000/
2500
2B+PVC/
N4+PVC
J4/304
/430
J4: 1900
304: 2900
430:1600
Kenya 0.8/1/1
.2/1.5/
2/3
1219 2438 2B 304/J4 304: 3000
J4: 2200
Prices mentioned are indicative of current (15-10-08) expectations in the market



April 07-March 08
Customer Country CR HR Grand Total
Chemaf S.P.R.L. Congo 30 184 214
Alexandria Metal works Egypt 19 0 19
Alexandria Metal Works Company Egypt 144 0 144
INTERNATIONAL TRADE OFFICE Egypt 198 0 198
MAGDY MOHAMED AFIFI FACTORY Egypt 240 0 240
Masaria Engineering and Contracting Egypt 125 0 125
KENS METAL INDUSTRIES LTD. Kenya 42 0 42
DESBRO ENGINEERING LIMITED Kenya 40 0 40
STE SCIF SA Morocco 0 53 53
EUROSTEEL S. Africa 91 0 91
PORTLAND STEEL INTERNATIONAL S. Africa 37 0 37
Straptite, South Africa S. Africa 22 0 22
Umangani Trading PTY Ltd. S. Africa 281 0 281
WIRE ERODERS t/a STRAPTITE S. Africa 19 0 19
Poulina De Produits Metallique Tunisia 20 0 20
1308 237 1545



Break-up for 2007-08



Break
up for
year
2007-08
India Indonesia Total
CR 1228 81 1309
HR 240 - 240
TOTAL 1468 81 1549
Break
up for
year
2007-08
S. Africa Egypt Kenya Morocco Congo Tunisia Total
CR 450 726 82 - 31 20 1309
HR 2 - 53 185 - 240
TOTAL 452 726 82 53 216 20 1549
Table (s) showing break up for the
entire 2007-08
The average for the entire year
is approx. 130MT/month.
All figures in 000 MT



Sales Highlights: 2008-09
Customer Country MT
Mpumatech S. Africa 22
Eurosteel S. Africa 45
Straptite S. Africa 21
Umngani S. Africa 86
Lord Intl Egypt 20
Ragab Egypt 21.5
Kens Metal Kenya 65
Apex Steel Kenya 24
Kayson Nigeria 24
TOTAL 328.5
Customer Country MT New/
Existing
Mpumatech S. Africa 22 New
Umngani S. Africa 46 Existing
Ragab Egypt 21.5 New
Kens Metal Kenya 45 Existing
Apex Steel Kenya 24 New
Kayson Nigeria 24 New
TOTAL 181.5
Total orders booked so far from April 08 till date
Total orders booked from J une 2008-till date



Contd..
Mostly orders were lost either due to unavailability of material or high
prices esp. in Egypt. Buyers were also on holiday during September for
Ramadan in Egypt.

In S. Africa there was a lot of economic turmoil coupled with political
uncertainty. Even local SS manufacturer was running under capacity.

Currency devaluation in S, Africa along with sharp drop in Nickel!!
Average 1USD=7.909 ZAR
High:1USD=9.485(12/10/08)ZAR
Low: 1USD=7.155
ZAR has depreciated about 20% in last 3 months, making the
imports more expensive!

Exploring new territories like Ethiopia, Ghana, Senegal, Mauritius,
Nigeria, Zambia





Expanding customer base
Country 2007- 08
Additions expected
in 2008- 09
S. Africa Eurosteel Mpumatech
Portland NDE
Straptite
Umngani
Egypt Alex. Metal Works Ragab
ITO Robido
Lord Int'l Messalla Int'l Trading
Masria Global Metals
Magdi Afifi Medd. Engg. Co.
El Magd
Speed Trading
Kenya Desbro Apex Steel
Kens Metal SSP
Morocco SCIF Imaghreb
Tunisia Regent Exoprt
The highlighted
buyers have already
booked order.

The projections for
new customers are
based on current
status.





Contd..
NEW TERRITORIES
Nigeria Kayson
Steel Force S Asia
Zambia Konkola Cu mines
Uniturtle
Zambia Dvpt. Agency
Industrial Distributors Ltd.
Senegal Sogetrq
Ghana Prime Carbon
Ethiopia TG Trading
Algeria Marubeni Itochu
Mauritius Forges Tradieu
Mesh & Steel
Initial steps involved

Meeting trade
counselors/contacting trade bodies

Search on internet and sending
regular mail/faxes (in French
language also) to prospective
buyers

Referring Trade directories

The list includes where proper
communication channel has been
established and buyers are
interested.



Targets for Nov/Dec 2008
Target for Oct
& Nov 08
S. Africa Egypt Kenya Morocco Congo Tunisia Total
CR 198 336 144 24 - - 702
HR - - 50 - - 50
TOTAL 198 336 144 74 - - 752
Table shows the target for next two months
The targets are based on the assumptions that Nickel will get stabilized
and we can meet price expectations esp. in Egypt
Some other countries like Ethiopia, Ghana, Senegal, Mauritius, Nigeria,
Zambia are not included where talks are on with different prospective
buyers.



CR BREAK UP
S. no Customer Country TOTAL
J4 JSLAUS 304 430 316 J4 JSLAUS 304 430 316
KENYA
1 Desbro Kenya 24 24
2 KensMetal Kenya 24 24 48
3 Apex Steel Ltd. Kenya 24 24 48
4 SSP Kenya 24 24
EGYPT
5 ITO Egypt 24 24 48
6 Alexandria Metal Works Egypt 24 24
7 Lord Egypt 24 24
8 Graflo Egypt 24 24 48
9 Mohamed Abd Allah Egypt 24 24 48
10 Messalla Int'l Trading Egypt 24 24 48
11 Global Metals Egypt 24 24 48
12 Medd. Engg. Dvpt. Co. Egypt 24 24 48
SOUTH AFRICA
13 Euro Steel S. Africa 22 22 44
14 Umngani Trading Py Ltd S. Africa 44 44 88
15 Straptite S. Africa 22 22
16 Mpumatech SS Tubes S. Africa 22 22 44
NIGERIA
17 Kayson Nigeria 24 24
138 46 94 48 0 186 0 166 24 0 702
Nov-08 Dec-08
326 376





THANK YOU

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