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


ore

Thyssenkrupp Tata Steel merger set to gain pricing power tweet
Fri 22nd Sep 2017 01:00 GMT
FRANKFURT Reuters - Thyssenkrupp Steel (DE:TKAG) and Tata Steel's (NS:TISC) plans to merge in Europe could enable them not just to cut costs but also raise prices, customers and shareholders [see article]

MMK recognised in Top 10 environmental rating in Russia ... tweet
Fri 22nd Sep 2017 01:00 GMT
PJSC Magnitogorsk Iron and Steel Works (MMK) efforts have been recognised as one of the Top 10 environmental initiatives by companies in Russias energy and metal sectors in H1 2017. The rankings, compiled by the Modern Media Research Institute and Live Planet TV, include environmental initiatives by 33 Russian metal and energy companies covered in the media in January-June 2017. MMK took 10th place in the ratings, thereby confirming the result from H2 2016 and making MMK the only ferrous [see article]

EDITORIAL COMMENT: Do not let the Luddites win tweet
Fri 22nd Sep 2017 00:29 GMT
Not too long ago, government announced plans to revive the Zimbabwe Iron and Steel Company (Zisco), in a $1 billion deal, which could rise to $2 billion, we were told, in terms of a deal with Chinese investors. Ziscos revival fortunes are dependent on [see article]

Steel Stocks Seeing Notable Weakness In Late-Day Trading tweet
Thu 21st Sep 2017 14:01 GMT
The index is on pace to end the session at its lowest closing level in nearly a month. Olympic Steel (ZEUS), US Steel (X) and Brazil's CSN (SID) are turning in some of the steel sector's worst performances on the day [see article]

Global Steel Rebars Market Share by Type, Production ... tweet
Thu 21st Sep 2017 05:13 GMT
ArcelorMittal, Hebei Iron and Steel, Baowu Group, Jiangsu Shagang, Sabic Hadeed, EVRAZ, Nucor, Riva Group, Emirates Steel, SteelAsia, Qatar Steel, Mechel, Jianlong Iron and Steel, Tata Steel, NLMK Group, Celsa Steel. Chapter 2, to analyze the top [see article]

Tata Steel-Thyssenkrupp deal: Can two problems equal ... tweet
Wed 20th Sep 2017 22:47 GMT
Recently, the company sold its steel business in Brazil. At some point, if Tata Steel gets an opportunity to do so, it may favour a higher stake in the JV and Thyssenkrupp may not be averse to it. A listing of the JV could be another option, where it [see article]

Tata Steel and ThyssenKrupp Agree to Create European ... tweet
Wed 20th Sep 2017 22:40 GMT
Both companies have been trying for years to find solutions for their struggling steel businesses. ThyssenKrupp has already unloaded units in the United States and Brazil that had helped plunge it into deep losses, ushering in a new management team led by [see article]

RAW MATERIAL NEWS


U.S. Steel (NYSE:X) target price dropped to $20.00, released ... tweet
Fri 22nd Sep 2017 06:06 GMT
and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil [see article]

Global Steel Output Records 6.3 pct Surge in August tweet
Fri 22nd Sep 2017 03:43 GMT
The countrys crude steel production declined by 64% year-on-year to total around 20,000 tonnes. The output by Argentina reported 22% jump over the previous year. The other countries to report surge in production were Brazil, Ecuador and Brazil [see article]

China: Lift in steel production overstated in the official ... tweet
Thu 21st Sep 2017 22:30 GMT
Despite the higher prices, exports from Australian and Brazil have flat-lined while the marginal players as well as a moderation in demand as Chinese growth slows and the steel inventory cycle matures. Our 2018 end points are US$57t for iron ore [see article]

United States Steel Corporation (NYSE:X) has been upgraded ... tweet
Thu 21st Sep 2017 12:02 GMT
and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil [see article]

Iron ore's recent reversal likely the start of longer ... tweet
Wed 20th Sep 2017 23:24 GMT
Steel rebar inventories display a more seasonal pattern with the Australian government forecaster expecting Brazils Vale, the worlds biggest iron ore miner, to increase its output to 400 million tonnes by next year, up from 360-380 million [see article]

Brazil's steel output up 9% tweet
Wed 20th Sep 2017 07:29 GMT
Brazilian crude steel production rose 9.3% year-on-year to 22.5Mt in the first eight months of 2017, according to local steel industry BNamericas develops thousands of news articles, analyses and features every month, always concentrating on how to [see article]

A statement released earlier today by Credit Suisse Group ... tweet
Mon 18th Sep 2017 07:05 GMT
and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil [see article]

ASX poised to rise, Fed poised to detail balance sheet ... tweet
Sun 17th Sep 2017 18:26 GMT
China's steelmaking hub of Tangshan published on Friday its action plan to tackle include the capping of local steel production rates at 50 per cnet of capacity over November 15-March 15, and extending coke production time to over 36 hours compared [see article]

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



SELECTED STEEL INDUSTRY MAPS


European SBQ plants
European SBQ 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.