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

Redcliff awards $500k tender for road rehab tweet
Sun 10th Dec 2017 15:25 GMT
He said Zisco road was the busiest road in his local authority up our image and improve on service delivery as we anticipate the re-opening of the former steel giant Ziscosteel under this new political dispensation, said Clr Kapuya [see article]

Thyssenkrupp makes offer to workers for Tata Steel deal ... tweet
Sun 10th Dec 2017 00:00 GMT
By Tom Kckenhoff BERLIN Reuters - Thyssenkrupp (DE:TKAG) has offered workers commitments on jobs and investments to get union backing for its deal with Tata Steel (NS:TISC) to merge their [see article]

Severstal introduces digital predictive model to prevent ... tweet
Sun 10th Dec 2017 00:00 GMT
Cherepovets Steel Mill, one of the worlds largest integrated steel plants (part of Severstals Russian Steel division), has launched the commercial operation of a digital predictive model to prevent failures at the hot rolling mill 2000 and thereby reduce its downtime. This model calculates the probability and risk of the pinion stand bearings overheating, which is one of the most frequent and costly causes of unit shutdown. This is the first predictive maintenance model introduced at the Ch [see article]

Steel consumption expected to rise by 7.7% tweet
Thu 7th Dec 2017 17:32 GMT
Authorities have sent 12 inspection groups to some areas, including Hebei, Henan and Heilongjiang provinces and the Guangxi Zhuang autonomous region, to oversee the move, according to Lin Nianxiu, deputy head of the NDRC. China plans to reduce crude steel [see article]

RAW MATERIAL NEWS


Steel firms set to shine in New Year tweet
Fri 8th Dec 2017 00:00 GMT
Analysts expect China's steel output cuts to result in stronger earnings for Indian manufacturers in the next 2-3 quarters [see article]

Hong Kong-Listed Henan Jinma Energy Expects 70% Increase ... tweet
Thu 7th Dec 2017 17:03 GMT
coke segment which was mainly driven by an increase in the average selling price of coke due to the continuous recovery of iron and steel and construction industries in 2017. Henan Jinma Energy is a China-based coke and coking by-products company [see article]

Henan Mingtai Alumin expect 2018 production and sales ... tweet
Wed 6th Dec 2017 22:02 GMT
Reuter reported that Henan Mingtai Aluminum, one of China's biggest aluminium sheet manufacturers, expected its production and sales to keep growing in 2018 despite the launch of US trade probes into imports of the product from China ..more [see article]

Analysis: Iron ore price gains defy China steel cuts tweet
Wed 6th Dec 2017 01:16 GMT
The price hit $71.50/t on 4 December, the highest level since 18 September. Large steel-producing cities such as Tangshan, Handan and Tianjin have enforced a 50pc reduction in blast furnace output from 15 November to 15 March to reduce coal use during the [see article]

Saudi Arabia Steel Pipes and Rebars Market Outlook to ... tweet
Mon 4th Dec 2017 16:54 GMT
Jeddah and other regions such as Hadeed and Al-Jubail captured the remaining % revenue share in 2016. By Finishing Type Fabricated rebars dominated the revenues generated through sales of steel rebars with a share of % in 2016. These type of rebars are [see article]

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



SELECTED STEEL INDUSTRY MAPS


Chinese seamless tube mills
Chinese seamless tube mills

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




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 2018 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2018 as compared to 2017 is that of a tiny reduction in the global capacity surplus [which will fall from ~602mt to ~598mt] and a small but significant improvement in world capacity utilisation at the crude steel level.



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
1639
2370
69.2%
2017
1754
2356
74.4%
2018
1782
2380
74.9%
Source: MCI analysis. Table last updated 15-Nov-17.

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.