Steel industry news and business information website.

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This website is owned and operated by UK-based Metals Consulting International Ltd.
Our main business activity is steel industry capital investment appraisal.

STEEL NEWS REPORTS

CORPORATE NEWS


ore

Global Metal Fencing Market: Research, Positioning, Surveys ...
Fri 18th Aug 2017 14:00 GMT
Global Metal Casting market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including ThyssenKrupp, Weichai, Alcoa, Xinxing Ductile Metal Casting, Steel Metal Casting [see article]

Scunthorpe's British Steel goes global after stretching ...
Fri 18th Aug 2017 00:10 GMT
British Steel is a well-known name in this part of the world and is synonymous with quality, service and innovation. Alongside our American office, we also have sales agents operating in Brazil and Mexico, ensuring that we expand our reach to offer [see article]

Two workers killed in explosion at Gerdau Brazil
Thu 17th Aug 2017 04:55 GMT
Two Gerdau workers lost their lives on 15 August after an explosion at the company's steel plant in Ouro Branco, Brazil. Gerdau workers continue to die because of health and safety problems at the company's plants. Less than a year after an accident caused [see article]

No Zisco rescue in sight
Thu 17th Aug 2017 03:43 GMT
GOVERNMENT is yet to find investors to revive the moribund Zimbabwe Iron and Steel Company (Zisco), almost three years after a deal with Indias Essar group broke down. Mike Bimha, the Minister of Industry and Commerce, last week told The Financial [see article]

Broker Forecast - Beaufort Securities issues a broker ...
Thu 17th Aug 2017 01:00 GMT
Beaufort Securities today reaffirms its long term buy investment rating on Glencore PLC (LON:GLEN) and set its price ta [see article]

Nucor to Add Cold-Finish Facilities in St. Louis, Mexico
Wed 16th Aug 2017 20:51 GMT
Nucor Corp., Charlotte, N.C., has reached an agreement with St. Louis Cold Drawn Inc. to acquire the Missouri-based manufacturer of cold-finished steel bar products. The acquisition includes St. Louis Cold Drawn's two cold-finish manufacturing facilities in St. Louis and Monterrey, Mexico [see article]

RAW MATERIAL NEWS


Tianjin port paving way for OBOR initiative
Fri 18th Aug 2017 06:58 GMT
Tianjin port is the largest comprehensive port in northern China possessing the specialized terminals respectively for containers, iron ore, coal, coke, crude oil and petrochemical products, steel the number of routes to Tangshan, Huanghua [see article]

Europium Market Expected to Expand at a Steady CAGR through ...
Fri 18th Aug 2017 00:58 GMT
Visit For TOC xxx The key players in europium market include Rare Element Resources, Avalon Rare Metals Inc., Molycorp, Lynas, Minmetals Corporation, Baotou Steel Rare-Earth, Xiamen Tungsten, Great Western Minerals [see article]

RUSAL invests USD 24 million in calcined coke production
Thu 17th Aug 2017 01:00 GMT
UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, has announced the launch of a new calciner at the Irkutsk Aluminium Smelter. The total project investment amounts to USD 23.7 million. In 2015, it was decided to upgrade the calciner #2 at IrkAZ to produce calcined coke supplied to the Sayanogorsk Aluminium Smelter for the production of baked anodes. Production capacity of the calciner is 72 ktpa. Currently Russia is short of calcinat [see article]

Repricing aluminum's supply risks is a chaotic work in ...
Mon 14th Aug 2017 18:50 GMT
A total of 207,000 tonnes of shuttered capacity in the province of Henan, for example, will be transferred to Other commodity sectors, such as coal and steel, are further along the same road. And both have demonstrated how disorderly the process [see article]

Reports of Iron Ore Price Demise Greatly Exaggerated
Mon 14th Aug 2017 14:49 GMT
Some have come off a low base, like Russia and Brazil, that have been in severe recessions and Iron ore in particular has been both physically and speculatively supported by robust steel production and the fear among buyers that environmental controls [see article]

Chinese steel prices forecast to hold steady through ...
Thu 10th Aug 2017 14:31 GMT
they want to produce more with steel prices rising, said a trader in Jinan in China's eastern Shandong province. Stockpiles of imported iron ore at China's ports stood at 139.15 million tonnes on Friday, according to data tracked by SteelHome [see article]

BlackRock World Mining Trust Plc - Half-year Report
Thu 10th Aug 2017 09:22 GMT
The strength in iron ore surprised the amounts of initial material from Pedra Branca for processing at Antas; however, given the exploration success at Antas, spare processing capacity is being filled by Antas ore, with Pedra Branca now to be developed [see article]

To see other steel sector news reports, check out our other steel news pages.



SELECTED STEEL INDUSTRY MAPS


World coke plants
World coke plants

For other steel location maps, visit our steel industry maps page.




CAPEX

STEEL PLANT CAPITAL INVESTMENT COSTS



BOF SLAB PLANT

BOF-cc-slab
All cost estimates are in 2016 US dollars.
For further info visit our steel capex page.

Capital costs describe investment for an integrated slab plant with continuous casting, typically with coke, sinter etc. Representative investments include:

  • CSA slab mill investment in Sepetiba, Brazil
  • CSN investment in Itaguai, Brazil
  • CVRD-Baosteel joint venture in Vitoria, Espirito Santo in Brazil
  • Sinosteel Corporation's investment in Jharkand, India.

Average cost: $4300m
Average capacity: 4210 kt
Sample size: 12
Average cost/tonne: $1050/t


INTEGRATED HOT STRIP MILL

BOF-cc-hsm
All cost estimates are in 2016 US dollars.
For further info visit our steel capex page.

Chart describes investments in ore-based integrated steel plants with hot strip production and sometimes other additional downstream rolling capability. Typical examples include:

  • Wuhan Iron & Steel investment in Fangchengang Port in China
  • ArcelorMittal investment in Karnataka, India
  • Tata Steel joint venture with VSC & Vicem for investment in Vung Ang in Vietnam.

Average cost: $7560m
Average capacity: 6660 kt
Sample size: 16
Average cost/tonne: $1200/t

Notes
Analyses above were last updated in January 2016. For further item-specific capital investment data see our steel capex database page.




EMPLOYMENT BENCHMARKS



steel sector employment benchmarks

Chart above shows current employment levels at 114 different steel firms around the world - companies that make flat, long and/or tubular carbon steel products. An average steel producer with a production capacity of ~3 mt steel/year typically thus has ~4000 employees. If your steel company employs more than this, please call us - our technical experts can assist with steel plant productivity improvement.

To discuss the interpretation of this chart and/or further information (including employment benchmarks for specialty steel production) please email us at the address shown at the foot of the page.




INDUSTRY SUPPLY & DEMAND FORECASTS FOR YEARS 2017-2018

Table below shows global crude steel production volumes and capacity figures - as assessed by World Steel Association and by the OECD to 2017 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2017 as compared to 2016 is that the global capacity surplus will get marginally worse [increasing from a capacity excess of ~784mt to ~790mt]. MCI's own estimates suggest that excess global crude steel capacity is likely to remain between 750-800 million metric tonnes in 2018.



Year
Production
million t
Capacity
million t
Capacity
Utilisation
2012
1560
2102
74.2%
2013
1650
2273
72.6%
2014
1670
2322
71.9%
2015
1620
2368
68.4%
2016
1623
2407
67.4%
2017
1632
2422
67.4%
2018
1640
2425
67.6%
Source: MCI analysis. Table last updated 22-Dec-16.

Graph below shows the relationship between steel prices and the global level of capacity utilisation - and indicates (both for HRC and for rebar) that prices fall ~$27/tonne per 1% drop in capacity utilisation.



world steel price levels

In 2017, on the basis that world capacity utilisation remains largely at 2016 levels of approx 67.4% (see table), MCI's consultants expect steel prices to remain at 2016 levels. In 2018, assuming a very small improvement in global capacity utilisation, we forecast just a tiny increase in steel price levels of the order of $5/tonne (hot rolled coil and reinforcing bar). For other products and / or for steel price forecasts through to 2020, please contact us.