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

Director Declaration
Fri 23rd Jun 2017 01:00 GMT
RNS Number: 0313J Glencore PLC 23 June 2017 Glencore plc Baar, Switzerland 23 June 2017 Director Declaration Glencore plc announces that, in accordance with paragraph 9.6.14R of the UKLA's Listing Rules, it has been notified that Ivan Glasenberg, a Director of the Company, has been appointed as a non-executive director of Rosneft Oil Company PJSC which is l [see article]

Beijing, Tianjin, Hebei regions integrated and complementary
Thu 22nd Jun 2017 21:03 GMT
In February 2005, the local government approved its relocation project, allowing Capital Steel to construct a new production base in Caofeidian in Tangshan, Hebei province, by the end of 2010. The project was unprecedented in scale; it involved the [see article]

Redcliff cement plant recruits 100 workers
Tue 20th Jun 2017 18:37 GMT
The new cement firm has brought a refreshing feel to the deathly silence and faltering industrial face of Redcliff since the collapse of Zisco Steel in 2008. On average Zimbabwe consumes about 1,14 million tonnes of cement per year and producers have to [see article]

RAW MATERIAL NEWS


Mideast May direct reduction iron producers' output trends ...
Wed 21st Jun 2017 06:53 GMT
Qatari DRI output of 219,000 mt, and Saudi Arabian producer Hadeed's 400,000 mt marked falls both against improving indicative fundamentals with regional spot prices of rebar steel, merchant pig iron and ferrous scrap in May. The analysis uses fised [see article]

Detailed examination of the Global non-magnetic alloy ...
Tue 20th Jun 2017 19:25 GMT
Inc. API Engineering Ltd. Zhong Yuan Special Steel Shanxi Fenglei Drilling Tools Shanxi YIDA Special Steel Group Henan Shenlong Petroleum Drilling Tools Dezhou Danas Petroleum Technology Service Inner Mongolia North Heavy Industries Group Jiangsu Elite [see article]

Brazil's crude steel output up in Jan-May
Tue 20th Jun 2017 12:59 GMT
Brazilian crude steel production rose 14.2% year-on-year to 14.1Mt in the first five months of 2017, according to data from local BNamericas develops thousands of news articles, analyses and features every month, always concentrating on how to make or [see article]

Iron Ore: Citi Cuts Forecasts, Warns Prices Will Fall ...
Mon 19th Jun 2017 09:21 GMT
Citi is the latest bank to take aim at iron ore, forecasting prices will fall below $50 a tonne by the end of the year as it downgradedFortescue Metals Group (FMG.AU) to sell. Iron ore has been smashed since reaching a high of roughly $95 a tonne in February amid concerns about new sources of supply, like Hancock Prospecting's Roy Hill, and hefty Chinese stockpiles of the steel making ingredient. Iron ore last traded around $56 a tonne [see article]

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



SELECTED STEEL INDUSTRY MAPS


World coke plants
World coke 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.