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 INDUSTRY NEWS

CORPORATE STEEL SECTOR NEWS


steelworker

Steel Industry Health Check: Import Fall Slows as Spreads ...
Tue 27th Sep 2016 17:45 GMT
The US steel industry (XME) has benefited from the trade cases imposed on imports of flat rolled steel products. Steel companies such as U.S. Steel (X), ArcelorMittal (MT), AK Steel (AKS), and Nucor (NUE) have increased their base selling prices [see article]

Is Nucor Corporation(NYSE: NUE), a large market cap stock ...
Tue 27th Sep 2016 13:09 GMT
With a market cap of has a large market cap size. Nucor Corporation has been on the stock market since its IPO date on the 9/1/1983 [see article]

Chinese Steel Prices Pare Gains after August Recovery ...
Tue 27th Sep 2016 01:46 GMT
Chinese steel prices are a key indicator that investors in companies such as U.S. Steel (X), ArcelorMittal (MT), AK Steel (AKS), and Nucor (NUE) should track. Chinese steel prices tend to put a floor under international steel prices. Simply put, if [see article]

Essar Steel Algoma fixes blast furnace - SooToday
Sat 24th Sep 2016 03:49 GMT
Essar Steel Algoma has determined the cause of a problem at its #7 blast furnace that's adversely affected the company's steel production and shipments for the past two months. Just-filed court documents related to the steelmaker's insolvency [see article]

STEELMAKING RAW MATERIAL NEWS


Coke contract prices to surge on output cuts, steel boost ...
Tue 27th Sep 2016 10:00 GMT
Metallurgical coal, or coke, contracts are set for the longest run of gains since quarterly deals were introduced in 2010 as China cuts output and raises steel production. Spot prices for hard coking coal have gained more than 80 percent since the [see article]

Is the iron ore price set to crash - Motley Fool Australia
Tue 27th Sep 2016 01:20 GMT
The Sydney Morning Herald reported today that Citi's analysts are predicting that iron ore prices will remain steady for the next couple of months, but are likely to face significant headwinds thereafter due to an expansion in supply. Citi is [see article]

Ex-limo firm, Kiwi billionaire bet on iron ore with projects ...
Tue 27th Sep 2016 00:38 GMT
The global iron ore market is awash with supply and prices remain volatile, but a former Chinese limousine rental service and a billionaire New Zealand family are among producers and developers wagering that new mines will be needed. Their focus is [see article]

Zacks: Brokerages Set $2.65 Target Price for Companhia ...
Mon 26th Sep 2016 10:51 GMT
Companhia Siderurgica Nacional operates throughout the entire steel production chain, from the mining of iron ore to the production and sale of a range of steel products, including coated galvanized flat steel and tinplate. The Company operates through [see article]

Blacksmith's process shows how steel industry uses billions ...
Mon 26th Sep 2016 05:04 GMT
While experts differ on the amount of water needed, one 1999 report from the American Iron and Steel Institute said the entire steelmaking process, which includes ironmaking and coke-making, uses 75,000 gallons of water for each ton of steel produced [see article]

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



SELECTED STEEL INDUSTRY MAPS


USA zinc coating lines
USA zinc coating lines

For other steel location maps, visit our steel industry maps page.




CAPEX

STEEL INDUSTRY CAPITAL INVESTMENT COSTS



INTEGRATED 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 covering sinter, coke, DRI, blast furnaces, BOF plants, EAFs, induction furnaces, slab casting, billet and bloom casting, plate, hot rolled coil, cold rolled coil, hot dip galvanised sheet, tin plate, organic coated sheet, heavy sections, steel bar, wire rod, drawn wire, welded tube, seamless tube, pellets, washed coal, lime, PCI, air separation, power plant etc see our steel capex database page.




STEEL INDUSTRY EMPLOYMENT BENCHMARKS



steel industry employment benchmarks

Chart above shows year 2015 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 FORECASTS FOR 2016+

Table below shows global crude steel production volumes and capacity figures - as assessed by World Steel Association and by the OECD - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2016 as compared to 2015 is that the global capacity surplus will get worse, with excess global capacity increasing from ~749 to ~799 million tonnes and global stelemaking capacity utilisation falling by ~1.6% in 2016.

In 2017 the global excess of world steel capacity is expected to be worse than in 2016, increasing to ~807 million tonnes.



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
1622
2371
68.4%
2016
1608
2407
66.8%
2017
1615
2422
66.7%
Source: MCI analysis. Table last updated 24-Apr-15.

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

On the basis of the anticipated fall in 2016 of world capacity utilisation from 2015 levels of approx 1.6% (see table), MCI's consultants consider that world steel prices in 2016 will be ~$43/tonne below 2015 prices. For other products and / or for steel price forecasts through to 2020, please contact us.