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


steelworker

Thyssenkrupp CEO keen for Tata steel merger deal before ...
Wed 26th Jul 2017 01:00 GMT
By Maytaal Angel, Edward Taylor and Carolyn Cohn LONDON/FRANKFURT Reuters - Thyssenkrupp's (DE:TKAG) chief executive is pushing for a deal to fold its steel operations into a joint venture [see article]

Govt urged to recapitalise engineering sector
Mon 24th Jul 2017 10:52 GMT
The closure of major companies like ZISCO Steel has also dampened the performance of the sector which now has a bloated skilled labour base and very few opportunities. Experts however believe the sector holds vast potential to emerge as the countrys [see article]

MIDEAST STOCKS-Banks push Qatar higher, Mobily's loss ...
Mon 24th Jul 2017 08:15 GMT
Qatar outperforms region, nears pre-crisis level * Foreign investors remain net buyers in Qatar * Saudi's Mobily posts bigger-than-expected loss * Amlak pulls back in Dubai * Ezz Steel continues post-earnings slide in Egypt By Andrew TorchiaDUBAI [see article]

RAW MATERIAL NEWS


Casa Calabria
Sat 22nd Jul 2017 19:26 GMT
Marquette is known for their iron ore and the shipping of it to other points and it has My Bride wanted to dine at Casa Calabria, because it was highly recommended by one of her contact people, so off we went. She wanted to walk there from the hotel [see article]

STEEL WEEK IN BRIEF: Raw materials prices on the rise ...
Sat 22nd Jul 2017 04:41 GMT
Turkey continued to pay higher prices for imported scrap in line with rising billet and finished steel prices, while scrap prices in the USA and Taiwan followed a similar trend. Export prices for Brazil-origin pig iron rose this week amid renewed trading [see article]

Global automotive leaf spring assembly market insights ...
Fri 21st Jul 2017 06:32 GMT
Fangda, Hendrickson, Dongfeng, Jamna Auto Industries, Fawer, San Luis Rassini, Shuaichao, Eaton Detroit Spring, Chongqing Hongqi, Hubei Shenfeng, NHK Spring, Mitsubishi Steel, Leopord, Shuangli Banhuang, Standens, Owen Springs, Hayward, Hunan Yitong [see article]

$$ Fortescue loses landmark case on indigenous land rights
Thu 20th Jul 2017 12:12 GMT
Fortescue Metals Group has lost a landmark legal battle against an indigenous group in Australia, which could leave it exposed to hundreds of millions of dollars in compensation claims as well as having [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.




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.