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


steelworker

Nucor board approves projects tweet
Mon 18th Sep 2017 19:28 GMT
Nucor Corp. , headquartered in Charlotte, North Carolina, has announced that the company's board of directors has approved a steel bar micromill project and the expansion of either its Illinois or Ohio merchant bar operations. Nucor is considering five states in the Midwest and Southeast for the micromill project: Nebraska, Kansas, Missouri, South Carolina and Florida [see article]

Mystery deal to revive long-dead steelworks tweet
Fri 15th Sep 2017 12:00 GMT
Zisco steel was once Africas largest integrated steel maker. It folded operations in 2008 because of gross mismanagement and a failure by the state-owned firm to keep abreast with advancing technology, according to analysts. The African unit of India [see article]

Labour leaders warn of breakup of Thyssenkrupp - leaflet tweet
Fri 15th Sep 2017 01:00 GMT
DUESSELDORF Reuters - Labour representatives warned of the dangers of a break-up of Thyssenkrupp (DE:TKAG), one of the alternatives to a merger of the German group's European steel operations [see article]

Germany urges Thyssenkrupp to reach deal with unions ... tweet
Thu 14th Sep 2017 01:00 GMT
BERLIN Reuters - Germany's Economy Minister urged management at Thyssenkrupp (DE:TKAG) to seek an agreement with its workers over plans to merge the group's European steel operations with [see article]

Last chance saloon for Zisco tweet
Wed 13th Sep 2017 20:42 GMT
Last week, the government announced a new suitor for Zisco: Chinese firm, R & F, so deep-pocketed that they would inject $2 billion into the ailing steel giant. The investor, with interests in property and hotels, is touted to revive the steel giant and [see article]

Thyssenkrupp's home state in favour of Tata Steel tie-up tweet
Wed 13th Sep 2017 01:00 GMT
DUESSELDORF, Germany Reuters - The government of North Rhine-Westphalia, home to engineering and steel group Thyssenkrupp (DE:TKAG), has come out in favour of the group's planned merger of its [see article]

RAW MATERIAL NEWS


Iron ore price drops as Chinese steel begins to pile ... tweet
Sat 16th Sep 2017 00:27 GMT
China produces as much steel as the rest of the world combined Year-to-date imports of high-quality iron ore from Australia, Brazil and South Africa are 6.7% higher than in 2016, already a record breaking year when imports topped one billion tonnes [see article]

Citigroup disclosed U.S. Steel (NYSE:X), hiking its price ... tweet
Fri 15th Sep 2017 12:53 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]

$$ Fortescue Metals Group chief Nev Power to step down tweet
Fri 15th Sep 2017 08:44 GMT
Fortescue Metals Group,the world's fourth largest iron ore exporter, said on Friday its chief executive Nev Power would step down in February after seven years in the role. The Australian mining group [see article]

Next Fortescue CEO to Lead Push Beyond Iron Ore Cash ... tweet
Fri 15th Sep 2017 02:32 GMT
Nev Powers successor as Fortescue Metals Group Ltd.s top executive will be charged with leading theworlds fourth-largest iron ore exporters drive into new businesses [see article]

ASX poised for modest advance at open tweet
Thu 14th Sep 2017 16:57 GMT
China's steel mills running at full speed The weathervane billet price in Tangshan also fell 80 yuan per tonne late in the afternoon. These hit market sentiment, resulting in mills bidding very low for iron ore cargoes at Chinese ports, though [see article]

Record premium for high-grade iron ore as China toughens ... tweet
Thu 14th Sep 2017 00:01 GMT
The increased appetite for higher grade iron ore has helped strengthen the market share of top suppliers Australia and Brazil to more than 80 percent Higher quality ore produces more steel for each tonne that is processed, and can reduce emissions [see article]

Global Automotive Roller Tappets Market to Grow at a ... tweet
Wed 13th Sep 2017 18:03 GMT
Steel is a key component of an automotive roller tappet Other Prominent Vendors in the market are: Jinan, Rane Engine Valve, Wuxi Xizhou, Yuhuan Huiyu, Morel Lifters, ISKY Cams, Johnson lifters, and OTICS USA. What are the market opportunities [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.