New life breathed into Zisco Mon 23rd Oct 2017 00:54 GMT
GOVERNMENT is now in the final stages of concluding the implementation of the Zisco deal with Hong Kong-based company R&F as it seeks to revive the former steel manufacturing giant to make it a net exporter. Industry and Commerce Minister Dr Mike Bimha [see article
]Hwange seeks RBZ forex bailout Sun 22nd Oct 2017 20:05 GMT
The resuscitation of Zisco, thats another anchor customer for us and I think The government has secured $1 billion investment for the revival of the Zimbabwe Iron and Steel Company (Ziscosteel), from a Chinese investor, R and F Company, in a deal [see article
]EDITORIAL COMMENT: Companies must gear up for Zisco revival Sun 22nd Oct 2017 19:00 GMT
Minister Bimha said R and F is not into steel- making but is providing the funding for the revival of Zisco which was once Africas biggest integrated steel manufacturer. The revival of Zisco is also expected to boost other firms such as Hwange Colliery [see article
]Ukraine: Deripaska sells NGZ Thu 19th Oct 2017 10:01 GMT
The Antimonopoly Committee of Ukraine has allowed Glencore to buy Nikolaev Alumina Works from Rusal. Glencore will own a share in Aluminiy Ukrainy LLC and Guardon Ukraina LLC, which own 13.96% and 86.04% in NGZ respectively. In 2016 Nikolaev Alumina Works produced 1.51 million tons of alumina, up by 2% YoY. (Ukrainian metal) [see article
]Comparing Nucor Corporation (NUE) and The Competition Mon 16th Oct 2017 22:48 GMT
Nucor Corporation is one of 28 publicly-traded companies in the Steel industry, but how does it weigh in compared to its peers We will compare Nucor Corporation to similar businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations. Nucor Corporation has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500 [see article
]Tata Steel, Thyssenkrupp will not spin off joint venture ... Mon 16th Oct 2017 01:00 GMT
By Maytaal Angel BRUSSELS Reuters - Tata Steel (NS:TISC) and Thyssenkrupp (DE:TKAG) have no plans to spin off their pending European steel joint venture within the next two to three years, [see article
]Stake in Rosneft held by Glencore-QIA Consortium Mon 16th Oct 2017 01:00 GMT
RNS Number: 7352T Glencore PLC 16 October 2017 Glencore plc Baar, Switzerland 16 October, 2017 Stake in Rosneft held by Glencore-QIA Consortium Glencore refers to the announcement on 8 September 2017 in which it announced that the Consortium had concluded an agreement with CEFC China Energy Company Limited ( CEFC ) for the disposal by the Cons [see article
RAW MATERIAL NEWS
Dalian iron ore up on demand concerns, but edges off ... Mon 23rd Oct 2017 02:56 GMT
Some cities have already implemented the reduction, including the top steelmaking city of Tangshan. Those steel production cuts would weaken demand for iron ore, the main steelmaking ingredient, over the course of the winter restrictions, from November [see article
]Jangada Mines : Vanadium Deposit Sampling & Metallurgical ... Mon 23rd Oct 2017 00:29 GMT
Jangada Mines plc ('Jangada' or the 'Company') Significant Vanadium Deposit Sampling and Metallurgical Results at the Pedra % iron, with grade and rock chemistry between samples showing consistent low variance. Test results demonstrate that the ore [see article
]Dalian iron ore hits 3-wk high, buoyed by stronger steel ... Sun 22nd Oct 2017 21:32 GMT
China has ordered mills across the northern part of the country to cut production over winter to limit smog, but some cities have already implemented the reduction, including the top steelmaking city of Tangshan. Those steel production cuts would weaken [see article
]COLUMN-Will shrinking Chinese steel exports disarm Trump's ... Sun 22nd Oct 2017 19:59 GMT
The new winter heating season directives will force all sorts of industrial producers, including steel, to curb capacity in the area around Beijing between November and March to eliminate the city's notorious smog. Some cities, such as Tangshan [see article
]ArcelorMittal eyes Bhushan Steel to gain a foothold in ... Sat 21st Oct 2017 01:00 GMT
The company has previously shelved the plan to set up greenfield steel project in Odisha due to delay in land acquisition and allocation of iron mines [see article
]IMH 3Q & 9M 2017 operational results Fri 20th Oct 2017 01:00 GMT
Industrial Metallurgical Holding (IMH), one of the worlds leading suppliers of merchant pig iron and the biggest merchant coke producer in Russia, announces its operational results for 3Q and 9M 2017. Production of coking coal by the Coal division for 9 months of 2017 amounted to 2.17 mt, that is 50% more than in the same period last year. The increase in production occurred due to the launch of the Tikhova mine and the second stage of Butovskaya mine in May 2017. Coking coal concentrate pro [see article
]BHP CEO Seen as Under Pressure From Activist Elliott ... Fri 20th Oct 2017 00:50 GMT
But the company stumbled in 2015 as prices plunged for its chief commodity, iron ore, and a disaster at its Samarco mine in Brazil, which it jointly owned with Vale SA, resulted in charges of more than $1 billion. BHP slashed its dividend in February 2016 [see article
]Activists stalk BHP Billiton Fri 20th Oct 2017 00:44 GMT
In November 2015 the Fundo tailings dam at Samarco, an iron ore joint venture owned equally by Billiton and Vale, collapsed and 19 people were killed, including five from the local community. Several downstream communities were also flooded. The owners [see article
SELECTED STEEL INDUSTRY MAPS
World coke plants
For other steel location maps, visit our steel industry maps page.
STEEL PLANT CAPITAL INVESTMENT COSTS
BOF SLAB PLANT
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
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
Analyses above were last updated in January 2016. For further item-specific capital investment data see our steel capex database page.
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.
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.
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.