Oliver Spaltmann, Senior Market Analyst SMR. Household Appliances
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1 Oliver Spaltmann, Senior Market Analyst SMR Household Appliances September 2011
2 Household Appliances: What are typical Products? Washing Machines / Tumble Dryers Stainless steel is consumed mainly for washing machine drums (approx. 8 kg per unit), internal dryer boxes but also for external parts such as front / side panels and interior heating elements. Typical Grades: 430, 430M, 409, low Austenitic Share Thickness: mm Trends: Reduction of stainless steel parts, Outsourcing to Eastern Europe, Fast Growth in China Dishwashers 4.5 to 5 kg of stainless steel on average. 304 is still important for dishwashers due to use of detergents and chloride-containing water. Stainless Steel: internal parts (panels, sprayer, inner door cladding), external parts such as front door, panels and manual Typical Grades: 304, 430 as substitute (DDQs) Typical Thickness: mm Trends: Replacement of austenitics, Use of fingerprint resistant materials - 1 -
3 Household Appliances: What are typical Products? Cooking Equipment Ovens: Stainless steel is consumed for external parts (panels, manuals, handles, knobs), Cooker Top: stainless only at gas ovens (electric ovens: substituted by ceran) Microwave: stainless interiors / exteriors only at ~10% of microwaves (premium), almost no production in Europe anymore Typical Grades: 430, 304 Typical Thickness: up to 1mm (oven), mm (microwave) Trends: export from China (microwave), substitution of 304, fingerprint resistance (oven) Kitchen Hoods Use for external parts (panels), 430 replaced 304 for cooker hoods completely in Europe. Until 2005, kitchen hoods have been 100% austenitic. Production concentrated in Italy. Typical Grades: 430 DDQ Typical Thickness: mm - 2 -
4 Household Appliances: What are typical Products? Other Household Appliances Stainless steel is also used for a wide range of products such as: Refrigerators / Freezers Water Heaters Electric Kettles Rice Cookers (Asia) Steam Irons Toasters Mixers Barbecue Grill Coffee Machines With the exception of water heaters, kettles (interior parts) and steam irons (sole), stainless steel is used for external parts (panels) Typical Grades: 430, 304 Trends: Ferritics replacing austenitics, stainless steel fashionable (refrigerator surfaces / fingerprint resistance), dying of European small household good industry (almost every toaster, steam iron, heater and mixer is imported) - 3 -
5 Stainless Steel Share: External vs. Internal Parts Dominance of Stainless Steel Use for Internal Parts Stainless Steel Used for Household Appliances 100% 95% 90% 15% 10% Examples for External Parts: - refrigerator doors - oven panels - kitchen hoods 85% 80% 85% 90% Examples for Internal Parts: 75% 70% External Parts Internal Parts Stainless Steel Use - washing machine drums - tumble dryer - dishwashers - microwaves - 4 -
6 Major Producers of Household Appliances in Europe outside Europe: Haier, LG, Samsung, Sharp, Mitsubishi, Sanyo, Whirlpool, Maytag, Kenmore etc Logos show where companies have their headquarters manufacturing sites are spread all over Europe Largest Companies: BSH Electrolux Whirlpool Arcelik Indesit - 5 -
7 Globalisation of the European Appliance Industry Example Bosch-Siemens Haushaltsgeräte North America: Factories in United States (4) Mexico (1) South America: Factories in Peru (1) Europe: Factories in Germany (7) Spain (5) Poland (2) Turkey (2) Russia (2) France (1) Slowenia (1) Slowakia (1) Greece (1) Asia: Factories in China (3) Thailand (1) Main Brands Special Brands Regional Brands Founded ,000 Employees (2010) Turnover: 9.1 billion (2010) Stainless Consumption: ~50,000 t per annum - 6 -
8 Stainless Steel Demand Europe: Consumer Goods (2010) Consumer Goods are of comparatively Low Importance in Europe Share of Consumer Durables in Regions Consumer Durables 17% Transportation 12% Others 2% Construction 22% Industrial Use 47% Average America Europe Other Asia China European STS Market 2010 Other World 5.8 Million t (incl. LP) 0% 25% 50% - 7 -
9 Stainless Steel Demand: Consumer Goods (2010) White Goods and Small Household goods count for 28% of Consumer Durables Washing Machines / Tumble Dryers 17% Dishwashers 5% Other Consumer Goods / Catering 72% Cooking / Hoods 4% Rice Cookers / Water Cookers 1% Small Household Appliances 1% European STS Consumer Durables Market Million t - 8 -
10 Stainless Steel Demand: White Goods (2010) Europe is still the largest consuming Region world-wide, but China is already close......in production terms, China is already number 1 America 17% Other World 7% Europe 35% Other Asia 11% China 30% - 9 -
11 European Stainless Steel Demand: White Goods (2010) Poland became a major location for White Good Manufacturing in recent Years United Kingdom 4% France 5% Spain 8% Turkey 11% Others 14% Germany 16% Italy 23% Poland 19%
12 White Goods: Imports into European Union Turkey and China dominate Russia* 1% South Korea** 8% Thailand 1% USA** 1% Others 1% Turkey** 47% China 41% * incl. Belarus ** producers from these countries run also production facilities w ithin EU-27 Deliveries: ~60,000 t of STS included
13 Appliances*: Market Structures (World) Gauges between mm are most important, no use of Hot Rolled by Product Type In 000t CR <0.5 CR >0.5 Long Products by Grade Type * excl. Small Household Goods In 000t series 300series 400series Specialties
14 White Goods Great Opportunities in Emerging Countries Indian Washing Machine 1990: the River Progress... Indian Washing Machines
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