For other steel location maps, visit our steel industry maps page.
INTEGRATED SLAB PLANT
Capital costs describe investment for an integrated slab plant with continuous casting, typically with coke, sinter etc. Representative investments include:
Average cost: $4300m
Average capacity: 4210 kt
Sample size: 12
Average cost/tonne: $1050/t
INTEGRATED HOT STRIP MILL
Chart describes investments in ore-based integrated steel plants with hot strip production and sometimes other additional downstream rolling capability. Typical examples include:
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 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.
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.
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.
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.
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.