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

United States Steel Clarifies Comments Made by President ...
Thu 8th Dec 2016 00:00 GMT
Today United States Steel Corporation (NYSE: X) issued a statement regarding comments made yesterday by President and CEO Mario Longhi [see article]

Tata Steel sweetens offer to UK workers, moves closer ...
Wed 7th Dec 2016 00:00 GMT
By Maytaal Angel and Carolyn Cohn LONDON Reuters - Tata Steel UK (NS:TISC) offered British unions a deal guaranteeing jobs and investment on Wednesday in return for pension cuts, moving the [see article]

Birmingham's Southland Tube to sell to Charlotte's ...
Tue 6th Dec 2016 19:01 GMT
Johnny Montgomery, CEO of Southland Tube, stands in one of the mills where the steel tubes are manufactured, Wednesday December 7,2011. Charlotte-based steelmaker Nucor has agreed to buy Birmingham's Southland Tube for $130 million, the companies announced Tuesday [see article]

Nucor to acquire Southland Tube
Tue 6th Dec 2016 19:01 GMT
Nucor Corp. , Charlotte, has agreed to acquire Southland Tube , an independent manufacturer of hollow structural section steel tubing, for $130 million The acquisition of Southland Tube is an excellent fit for our Nucor family and our strategy for profitable growth, says John Ferriola, chairman, CEO and president of Nucor. It complements our recent acquisition of Independence Tube in the HSS steel tubing market [see article]

Negative returns in Tata Steel Europe a risk to group: ...
Tue 6th Dec 2016 00:00 GMT
Up against Tata Sons' move to remove him as director of Tata Steel, ousted Chairman Cyrus Mistrydefended his leadership of the [see article]

RAW MATERIAL NEWS


China steel, iron ore extends gains to 6th day amid capacity ...
Thu 8th Dec 2016 16:26 GMT
Chinese steel and iron ore futures rose for a sixth session in a mainly from top suppliers Australia and Brazil, were sold higher this week. Iron ore for delivery to Chinas Qingdao port .IO62-CNO=MB climbed 3.2 percent to $82.25 a tonne, its [see article]

Companhia Siderurgica's Prospects Strong: Should You ...
Wed 7th Dec 2016 05:09 GMT
We believe that Companhia Siderurgica Nacionals diversified business structure, with exposure in steel, iron ore mining, logistics, cement and energy industries will prove beneficial over the long run. In the third quarter, roughly 40.1% of the company [see article]

Mine Tales: Vekol Mine heavily prospected in early 1900s
Sun 4th Dec 2016 12:06 GMT
Daggs acquired the mine then composed of six patented claims of which the Vekol being the greatest producer along with the Argosy, Lookout, Flat Iron the ore body at several hundred feet. High grade ore was stoped and transported to Casa Grande [see article]

Todays Stock Alert: Companhia Siderurgica Nacional (ADR) ...
Fri 2nd Dec 2016 18:40 GMT
Companhia Siderurgica Nacional, incorporated on April 9, 1941, operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate [see article]

Better Buy: Teck Resources Ltd. vs. Companhia Siderurgica ...
Wed 30th Nov 2016 07:58 GMT
A combination of higher prices for steel and iron ore (27% of revenues and 45% of adjusted EBITDA If you want to bet on Brazil, by all means look at Companhia Siderurgica Nacional. But if what you really want is a foreign-based company that has [see article]

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



SELECTED STEEL INDUSTRY MAPS


European BOF plants
European BOF plants

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




CAPEX

STEEL PLANT CAPITAL INVESTMENT COSTS



INTEGRATED 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 year 2015 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 FORECASTS FOR YEARS 2016+

Table below shows global crude steel production volumes and capacity figures - as assessed by World Steel Association and by the OECD - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2016 as compared to 2015 is that the global capacity surplus will get worse. Excess global capacity is likely to increase from ~749 to ~799 million tonnes and global stelemaking capacity utilisation will fall by ~1.6% in 2016.

In 2017 the global excess of world steel capacity is expected to be worse than in 2016, increasing to ~807 million tonnes.



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
1622
2371
68.4%
2016
1608
2407
66.8%
2017
1615
2422
66.7%
Source: MCI analysis. Table last updated 24-Apr-15.

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

On the basis of the anticipated fall in 2016 of world capacity utilisation from 2015 levels of approx 1.6% (see table), MCI's consultants consider that world steel prices in 2016 will be ~$43/tonne below 2015 prices. For other products and / or for steel price forecasts through to 2020, please contact us.