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

Report explores the special steel market estimated to ... tweet
Tue 22nd Aug 2017 04:49 GMT
Steel & Sumitomo Metal, POSCO, Baosteel Group, Jiangsu Shagang, Ansteel Group, Company eight, JFE, Shougang, Tata Steel, Wuhan Iron and Steel Corporation, Shandong Iron and Steel Group, Hyundai Steel, Nucor Corporation, Maanshan Iron and Steel Company [see article]

Leading players in global grain oriented electrical industry ... tweet
Mon 21st Aug 2017 06:20 GMT
Cogent(Tata Steel), ArcelorMittal, Stalprodukt S.A., ATI, WISCO, Baosteel, Shougang. There are 15 Chapters to deeply display the global Grain Oriented Electrical market. Chapter 1, to describe Grain Oriented Electrical Introduction, product scope [see article]

Global Metal Fencing Market: Research, Positioning, Surveys ... tweet
Fri 18th Aug 2017 14:00 GMT
Global Metal Casting market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including ThyssenKrupp, Weichai, Alcoa, Xinxing Ductile Metal Casting, Steel Metal Casting [see article]

Scunthorpe's British Steel goes global after stretching ... tweet
Fri 18th Aug 2017 00:10 GMT
British Steel is a well-known name in this part of the world and is synonymous with quality, service and innovation. Alongside our American office, we also have sales agents operating in Brazil and Mexico, ensuring that we expand our reach to offer [see article]

Steel Prices Are Skyrocketing in China: Five Of The Largest ... tweet
Thu 17th Aug 2017 22:00 GMT
The Chinese government has called on steel producers in the largest producing provinces Hebei, Shanxi, Shandong, Henan as well as Tianjin and Beijing to cut output by nearly 50% during the winter months of November to February. The Hebei province [see article]

No Zisco rescue in sight tweet
Thu 17th Aug 2017 03:43 GMT
GOVERNMENT is yet to find investors to revive the moribund Zimbabwe Iron and Steel Company (Zisco), almost three years after a deal with Indias Essar group broke down. Mike Bimha, the Minister of Industry and Commerce, last week told The Financial [see article]



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RAW MATERIAL NEWS


Breakfast News - AIM Breakfast : BOS GLOBAL Holdings ... tweet
Tue 22nd Aug 2017 12:32 GMT
CASA has commenced exploration drilling operations at the 9.5p 76.57m The diversified mineral development company with a portfolio of vanadium, titanium, iron ore, tin and coal assets in Southern Africa announced that following the announcement [see article]

Fortescue Metals Group Soars 5% as Profit, Dividends ... tweet
Mon 21st Aug 2017 02:46 GMT
Fortescue Metals Group (FMG.AU) is one of the top performers in Australia's S&P/ASX200 Index on Monday after the miner doubled its its full-year profit and final dividend. The world's fourth largest producer of iron ore reported a net profit of $2.09 billion compared to $985 million last year thanks to a rebound in the price of the steel making ingredient. The Perth-based company will pay a final dividend of 25 Australian cents a share, up from 12 Australian cents at the same time last year [see article]

Tianjin port paving way for OBOR initiative tweet
Fri 18th Aug 2017 06:58 GMT
Tianjin port is the largest comprehensive port in northern China possessing the specialized terminals respectively for containers, iron ore, coal, coke, crude oil and petrochemical products, steel the number of routes to Tangshan, Huanghua [see article]

Europium Market Expected to Expand at a Steady CAGR through ... tweet
Fri 18th Aug 2017 00:58 GMT
Visit For TOC xxx The key players in europium market include Rare Element Resources, Avalon Rare Metals Inc., Molycorp, Lynas, Minmetals Corporation, Baotou Steel Rare-Earth, Xiamen Tungsten, Great Western Minerals [see article]

RUSAL invests USD 24 million in calcined coke production tweet
Thu 17th Aug 2017 01:00 GMT
UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, has announced the launch of a new calciner at the Irkutsk Aluminium Smelter. The total project investment amounts to USD 23.7 million. In 2015, it was decided to upgrade the calciner #2 at IrkAZ to produce calcined coke supplied to the Sayanogorsk Aluminium Smelter for the production of baked anodes. Production capacity of the calciner is 72 ktpa. Currently Russia is short of calcinat [see article]

Repricing aluminum's supply risks is a chaotic work in ... tweet
Mon 14th Aug 2017 18:50 GMT
A total of 207,000 tonnes of shuttered capacity in the province of Henan, for example, will be transferred to Other commodity sectors, such as coal and steel, are further along the same road. And both have demonstrated how disorderly the process [see article]

Reports of Iron Ore Price Demise Greatly Exaggerated tweet
Mon 14th Aug 2017 14:49 GMT
Some have come off a low base, like Russia and Brazil, that have been in severe recessions and Iron ore in particular has been both physically and speculatively supported by robust steel production and the fear among buyers that environmental controls [see article]

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



SELECTED STEEL INDUSTRY MAPS


Chinese seamless tube mills
Chinese seamless tube mills

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.