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


iron

Govt pays former Zisco employees tweet
Sun 21st Jan 2018 14:29 GMT
Munyaradzi Musiiwa, Midlands Correspondent THE Government has honoured its commitment to pay retrenched Zimbabwe Iron and Steel Company (Zisco) workers their outstanding salaries backdated to 2009 as well as their packages. Zisco workers have for the past [see article]

Govt Pays Zisco Workers Outstanding Salaries Dating Back ... tweet
Sun 21st Jan 2018 02:14 GMT
The Government has honoured its commitment to pay retrenched Zimbabwe Iron and Steel Company (Zisco) workers their outstanding salaries backdated to 2009 as well as their packages. Zisco workers have for the past five months been receiving their [see article]

How the revival of ZISCO will solve half of Zimbabwes ... tweet
Sat 20th Jan 2018 08:41 GMT
Zimbabwe is planning to take over ZISCOs $450 million debt to pave way for a Hong Kong based company to take over the steel maker. Contributing to the 2018 budget in Parliament on Thursday Gabbuza said: If you sort out ZISCO Steel you have solved [see article]

Several Beaches Closed After Sewage Spill in Monterey ... tweet
Sat 20th Jan 2018 07:00 GMT
Vale confirms talks with BHP over Samarco exit.Vale (NYSE:VALE), the worlds largest iron ore producer, confirmed Wednesday it is in talks with BHP Billiton over the future of their Samarco joint venture, including the possibility of the Brazilian [see article]

Hitchwood Capital Management LP Boosted Its Pvh (PVH) ... tweet
Fri 19th Jan 2018 17:49 GMT
Hitchwood Capital Management LP Boosted Its Pvh Position by $22.05 Million; Valuation Rose; Perella Weinberg Partners Capital Management LP Lowered Its Holding in Nucor by $1.19 Million as Share Price Declined Daniel Arbess decreased its stake in Nucor Corp by 46.3% based on its latest 2017Q3 regulatory filing with the SEC. Perella Weinberg Partners Capital Management Lp sold 21,166 shares as the company's stock declined 11.33% while stock markets rallied [see article]

Steel Tariffs Extended tweet
Fri 19th Jan 2018 07:52 GMT
Misr National Steels (Ataqa) shares also closed at a 2.42% hike, with the value of each stake standing at LE 18.18. Ezz Steel went up 1.11% as well, to close at Though the decision to extend the tariff was lauded by local steel companies, it has still [see article]

Northern Chinas Hebei province home to six of 10 smoggiest ... tweet
Fri 19th Jan 2018 02:54 GMT
Also among Chinas 10 worst performing cities were the Hebei cities of Tangshan the worlds biggest steel producing city Handan, Xingtai, Baoding and Hengshui. However, in December alone, only four Hebei cities were included in the top 10 [see article]

Chinese cities with worst air condition in 2017 revealed tweet
Fri 19th Jan 2018 02:02 GMT
Hebeis steel-making cities Handan, Xingtai, Baoding and Tangshan placed second to sixth on the list respectively. Taiyuan, capital of Shanxi Province, Xian, capital of Shaanxi Province, Hengshui in Hebei, and Jinan, capital of Shandong Province [see article]

Liberty to make unconditional offer for Asco Industries ... tweet
Fri 19th Jan 2018 00:00 GMT
Liberty House, part of Sanjeev Gupta's GFG Alliance, UK's fastest growing industrial group, confirmed that it will today (19th January) make an unconditional and comprehensive offer to acquire the assets of Asco Industries and Ascoval, securing the jobs of close to 1,600 employees at six operations across France, as well as many supplier jobs [see article]

INDUSTRY NEWS


BRIEF-Hunan Valin Steel's Chairman Resigns Due To Change ... tweet
Mon 22nd Jan 2018 03:17 GMT
Jan 22 Reuters - Hunan Valin Steel Co Ltd: * SAYS CHAIRMAN CAO HUIQUAN RESIGNS DUE TO CHANGE IN JOB ROLE Source text in Chinese: http://bit.ly/2mZMA8P Further company coverage: (Reporting by Hong Kong newsroom) [see article]

Bulk carrier rates sink as Brazils iron ore exports wane tweet
Sun 21st Jan 2018 14:39 GMT
Amid rising steel inventories, a slump in iron ore demand is affecting shipping, said Tramp Data Service, a maritime data company. Freight rates, which are linked to charter rates, for iron ore from Brazil to China have dropped by more than 30% since [see article]

Supply fears drive zinc, lead higher tweet
Sun 21st Jan 2018 12:57 GMT
CHINA POLLUTION: Zhengzhou, capital of key aluminium-smelting province Henan, raised its air pollution alert to red The metal used to galvanise steel was on track for a sixth week of gains. STOCKS: On-warrant LME stocks fell by 24,175 tonnes to [see article]

METALS-Supply fears drive zinc and lead to multi-year ... tweet
Fri 19th Jan 2018 11:21 GMT
CHINA POLLUTION: Zhengzhou, capital of key aluminium-smelting province Henan, raised its air pollution alert to red The metal used to galvanise steel was on track for a sixth week of gains. STOCKS: On-warrant LME stocks fell by 24,175 tonnes to [see article]

Chhattisgarh withdraws law that would have allowed the ... tweet
Fri 19th Jan 2018 08:24 GMT
About 15 per cent of Indias steel is produced in the State The Three Grades of Servants cult, an underground pseudo-Protestant sect founded in Henan, is especially strong in the countryside. Those convicted claim they are just ordinary Christians [see article]

China needs the world more than ever right now. Don't ... tweet
Fri 19th Jan 2018 03:00 GMT
Some examples: In the public sector, the local government in Baotou, Inner Mongolia is allowing civil servants It needs to use its oversupply of commodities like steel. It needs to put its companies to work, especially massive heavily indebted quasi [see article]

BHPB Iron Ore production update for December 2017 tweet
Fri 19th Jan 2018 01:35 GMT
BHPB announced that its total iron ore production for the December 2017 half year was Mining and processing operations at Samarco remain suspended following the failure of the Fundo tailings dam and Santarm water dam on 5 November 2015 [see article]

BRAZIL: Camex Refrains From Adopting Antidumping Duties ... tweet
Fri 19th Jan 2018 00:11 GMT
(Agencia CMA Latam) - The Brazilian Foreign Trade Chamber (Camex) refrained from adopting anti-dumping duties to imports of rolled steel from Chinese and Russian companies for now, said the Minister of Planning, Dyogo Oliveira, after a meeting. According [see article]

Second Vroon W2W Vessel Completes Modifications and Outfitting ... tweet
Thu 18th Jan 2018 23:29 GMT
VOS Stone was built at Fujian Southeast Shipbuilding in China before coming to Damen also offers a variety of marine components, such as nozzles, rudders, anchors, anchor chains and steel works. Damen Shiprepair & Conversion (DSC) has a worldwide [see article]

IMH FY 2017 operational results tweet
Thu 18th Jan 2018 00:00 GMT
Industrial Metallurgical Holding (IMH), one of the worlds leading exporters of merchant pig iron and the leading merchant coke producer in Russia, reports its operational results for FY 2017. Coking coal mined by IMH Coal division in 2017 increased to 2.83 mt., that is 28% more than in 2016 and accounts for the absolute record for the companys history. This increase was achieved due to the new Tikhova mine and the second stage of Butovskaya mine commissioning in May 2017. That is the result [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.




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 2018 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2018 as compared to 2017 is that of a tiny reduction in the global capacity surplus [which will fall from ~602mt to ~598mt] and a small but significant improvement in world capacity utilisation at the crude steel level.



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
1639
2370
69.2%
2017
1754
2356
74.4%
2018
1782
2380
74.9%
Source: MCI analysis. Table last updated 15-Nov-17.

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.