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

China steel hits nine-week peak amid crackdown, lifts ...
Sun 21st May 2017 22:57 GMT
MANILA Chinese steel futures jumped nearly 6 percent on Monday to their highest since March, stretching last week's gains on concerns over limited supply as Beijing keeps up a campaign to clamp down on polluting producers. Tangshan city in Hebei province [see article]

Credit Suisse says iron ore spot prices may extend rebound ...
Sun 21st May 2017 02:29 GMT
That's one reason why Shanghai rebar steel futures have recovered to their highest in six weeks. Tangshan city in Hebei province, China's biggest steelmaking region, has an ongoing campaign through the end of May to suspend and fine mills that fail to meet [see article]

China steel headed for 2nd best week this year amid crackdown
Thu 18th May 2017 22:03 GMT
Shanghai rebar steel futures climbed to a six-week peak on Friday and were on track for their biggest weekly increase since January, supported by worries over tighter supply as China sustains a crackdown against polluting producers. Tangshan city in Hebei [see article]

RAW MATERIAL NEWS


Iron Ore Hits 2-Week High; Fortescue, Rio Tinto Soar
Mon 22nd May 2017 04:12 GMT
Fortescue Metals Group chairman Andrew Forrest is making news with his AUD400 million donation to charity, so it's handy the miner's stock is up more than 4% this morning. Fortescue (FMG.AU) is pacing [see article]

Sanjeev Gupta awarded CEO of the Year by Platts
Fri 19th May 2017 01:00 GMT
International entrepreneur Sanjeev Gupta has scooped a top global metals award in recognition of his relentless drive to transform the steel industry in the UK and beyond [see article]

Iran's Shadegan starts commissioning of new direct reduced ...
Thu 18th May 2017 08:42 GMT
Iran's Shadegan Steel started hot commissioning at a new direct reduced iron module Sunday, the country's state mines and metals holding company Imidro said Thursday. Shadegan plans to complete five other modules at various locations in Iran by March 2018 [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.