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

Chinas Yingde Gases awaits offer from suitor as infighting ...
Thu 19th Jan 2017 18:00 GMT
Hunan Yingde was the principle subsidiary of Yingde Gases before Zhao also told the Post that Sun and Strutts management saw workers at Yingdes customer Hebei Jingye Iron and Steel occupy Yingdes gas supply facility nearby, to protest in [see article]

Q4 2016 and 12M 2016 NLMK Group Trading update
Thu 19th Jan 2017 00:00 GMT
Q3 2016 NLMK Group sales increased 7% qoq to 4.2 m t. Steel output was 4.0 m t (-4% qoq). In 9M 2016 Group steel output and sales increased by 2% yoy to a record high 12.3 m t. 9M 2016 capacity utilization rate was up by 1 p.p. to 95% [see article]

Evraz output falls
Thu 19th Jan 2017 00:00 GMT
Evraz said consolidated crude steel production and steel product output, net of re-rolled volumes, decreased by 5.7% and 6.1 [see article]

RAW MATERIAL NEWS


China Focus: China presses ahead with structural reform
Sun 22nd Jan 2017 17:08 GMT
The company cut 3.2 million tonnes of iron and steel capacity last year and targets a reduction of 4.4 million tonnes this year. Coal-rich Shanxi and central Henan both set the targets of cutting 20 million tonnes of coal capacity this year. The two [see article]

IMIDRO Seeks $3b Loan From NDFI
Sun 22nd Jan 2017 16:47 GMT
As reported by IMIDROs Public Relations Office, Karbasian believes the mining sectors growth is closely tied to stimulating demand in the construction sector and boosting consumption of steel, aluminum, cement and iron ore. The NDFI, Irans [see article]

Aluminium on a tear on hopes for China supply cuts
Thu 19th Jan 2017 08:58 GMT
Now, after tackling excess capacity in coal and steel in 2016, there are signs Chinese authorities Up to 30 per cent of aluminium capacity could be cut in Henan, Shandong and Shanxi, according to local media reports. That could represent 6 per cent [see article]

Global Rare Earth Metals Market to Expand Their Businesses ...
Thu 19th Jan 2017 05:01 GMT
Indian Rare Earths Limited, Lynas Corporation Limited, Great Western Minerals Group Ltd., Greenland Minerals & Energy Ltd., Rare Element Resources Ltd., Molycorp, Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co, Frontier Rare Earths Limited [see article]

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



SELECTED STEEL INDUSTRY MAPS


Middle East DRI plants
Middle East DRI 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.