Steel industry news and business information website.

sotn
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

New report examines the grain oriented electrical steel ...
Sat 27th May 2017 09:33 GMT
Cogent (Tata Steel), ArcelorMittal, Stalprodukt S.A, ATI, WISCO, Baosteel, Shougang, Ansteel To describe Grain Oriented Electrical Steel sales channel, distributors, traders, dealers, appendix and data source. For any Enquiry or special requirement related [see article]

CCI approves Tatas' acquisition of Docomo stake in TTSL
Thu 25th May 2017 01:00 GMT
Fair trade regulator CCI has approved Tatas' purchase of 21.63 per cent stake in group firm Tata Teleservices from Japan's NTT Docomo, [see article]

Steel Analyst Says The Market's Become Too Bearish ...
Wed 24th May 2017 17:34 GMT
Credit Suisse analyst Curt Woodworth upgraded the U.S. steel sector from Market Weight to Overweight, citing an overly bearish view of Chinese hot rolled coil and the pending results of the Department of Commerce's investigation into the industry. The analyst also upgraded United States Steel Corporation , Steel Dynamics, Inc. and Nucor Corporation from Neutral to Outperform [see article]

RAW MATERIAL NEWS


Iran's steel exports to rise following Rouhani's re-election
Wed 24th May 2017 07:48 GMT
Esfahan Steel is being saved by its profitable exports and we hope Iranian mines and metals state holding Imidro, has said the Iranian metals and mining industry is in need of more about $40 billion in investment, with foreign financing required [see article]

$$ Fortescue warns of greater volatility in iron ore
Tue 23rd May 2017 01:46 GMT
One of the world's largest producers of iron ore has warned that the steelmaking ingredient may need to fall further to counter the effect of a glut of Chinese supply that has made it one of the worst [see article]

Chinas environmental clean-up to have big impact on industry
Mon 22nd May 2017 08:15 GMT
In the aluminium-producing, coal-consuming provinces around Beijing, Henan, Shanxi and Shandong These companies all supply markets that have been hit hard by Chinese steel dumping. The debate over whether faster-growing economies should prioritise [see article]

Iron Ore Hits 2-Week High; Fortescue, Rio Tinto Soar
Mon 22nd May 2017 04:12 GMT
Fortescue Metals Group chairman Andrew Forrest is making news with his AUD400 million donation to charity, so it's handy the miner's stock is up more than 4% this morning. Fortescue (FMG.AU) is pacing [see article]

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



SELECTED STEEL INDUSTRY MAPS


European welded tube plants
European welded tube 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.