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

Steel 2017 Global Market Share, Growth, Trends & ...
Thu 23rd Mar 2017 15:43 GMT
The major players in global Steel market include ArcelorMittal S.A., Hesteel Group, Nippon Steel, POSCO, Baosteel Group, Jiangsu Shagang Group, Shougang, Tata Steel, Wuhan Iron and Steel Cor., Shangdong Iron and Steel Group, Hyundai Steel, Nucor [see article]

Russia: ChMK starts producing beams for industrial shops
Thu 23rd Mar 2017 10:31 GMT
Chelyabinsk Iron and Steel Works, a part of Mechel, has started producing two types of construction beams. The new beams (45B1 and 45B2) are used in construction of industrial buildings, warehouses and trade premises. So far the company has shipped over 200 tons of beams to local customers. (Ukrainian metal) [see article]

Dongkuk Steel marks first arrival of steel slab from ...
Wed 22nd Mar 2017 22:39 GMT
milestone with commercial production of thick plate using the first batch of steel slab produced from its long-awaited first blast furnace steelwork in Brazil. Dongkuk Steel Mill that was founded in 1954 as the first private steel company in Korea [see article]

RAW MATERIAL NEWS


Iran abandons plans for iron ore export tariffs
Thu 23rd Mar 2017 13:04 GMT
Arshiya Sibia, analyst at CRU Group, said Iran's steel output had grown by 9 percent last year, adding that because domestic demand was not strong, they had ramped up exports. Iranian Mines & Mining Industries Development and Renovation (IMIDRO [see article]

Steel firms mull Rs 1,000 a tonne hike from April
Wed 22nd Mar 2017 00:00 GMT
Pricing power to help domestic steel companies improve fortune in coming months. With iron ore prices on a rise and domestic demand likely to pick up [see article]

Lack of steel seen in surging iron-ore price
Sat 18th Mar 2017 15:08 GMT
If Trump gets that approved, the only way for steel and iron-ore prices is up, Masilela said saying physical demand in China for high-grade iron ore from Australia and Brazil was firm, but not for lower-grade material [see article]

Full text: Report on China's economic, social development ...
Fri 17th Mar 2017 05:34 GMT
We will support development and poverty relief work in old revolutionary base areas such as the Sichuan-Shaanxi region and the former Central Soviet areas in southern Jiangxi Fujian in the coal and steel industries. We will develop and improve [see article]

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



SELECTED STEEL INDUSTRY MAPS


USA zinc coating lines
USA zinc coating lines

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.