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

Chinese steel climbing again as capacity cuts advance ...
Tue 23rd Aug 2016 18:04 GMT
Hot-rolled coil is trading at 2,900 yuan to 3,000 yuan ($436 to $451) a ton in China, with major producers Anshan Iron and Steel Group and Wuhan Iron and Steel setting prices on the material 200 yuan higher for September than for August. Such increases [see article]

South Africa and ArcelorMittal forge steel pricing agreement ...
Tue 23rd Aug 2016 14:03 GMT
In future, when ArcelorMittal South Africa changes its flat steel prices, it will have to use a transparent mechanism based on the forecast basket prices of fabricated metal products, machinery and equipment, as well as vehicle and other transport [see article]

Steel giant ArcelorMittal to pay $110 million fine in ...
Mon 22nd Aug 2016 15:01 GMT
Steelmaker ArcelorMittal has agreed to pay a $110-million (88-million-euro) fine for illegal price fixing in South Africa, the country's competition watchdog announced Monday. The Competition Commission launched a probe into steel producers in the [see article]

ArcelorMittal South Africa to pay record $110 mln to ...
Mon 22nd Aug 2016 14:51 GMT
JOHANNESBURG Reuters - ArcelorMittal's South African unit has agreed to pay a record 1.5 billion rand ($110 million) fine for colluding to fix steel prices, the competition watchdog said on Monday. The Competition Commission launched an investigation [see article]

STEELMAKING RAW MATERIAL NEWS


Trans Tasman Resources reapply to mine iron ore in South ...
Wed 24th Aug 2016 04:39 GMT
A seabed mining company wanting to extract iron ore from South Taranaki's seabed is having a second crack at applying for consent. Trans Tasman Resources' (TTR) application to the Environmental Protection Agency (EPA) in 2014 was rejected [see article]

Mining giants record loss highlights Australian economys ...
Wed 24th Aug 2016 00:10 GMT
The mounting problems were compounded by a catastrophic dam collapse at the Samarco iron ore mine in Brazil. Worse may be to come. The company booked after-tax charges of $7.7 billion related to the Samarco disaster, global tax issues and the reduced value [see article]

Iron Ore: Is the Rally Running out of Steam - Barron's ...
Tue 23rd Aug 2016 16:05 GMT
Citigroup's Tracy Xian Liao and team argue that the rally in iron-ore priceswhich has helped lift shares of Cliffs Natural Resources (CLF) and other iron minersis running out of steam. They explain: Bloomberg News. Despite iron ore's outstanding [see article]

Iron ore's rally has its days counted Citi - MINING.com
Tue 23rd Aug 2016 15:23 GMT
There are short- to medium-term risks in iron ore and coal as the impact of Chinese stimulus that has boosted the 2016 year to date abates, Citi analysts wrote in a research note, quoted by Bloomberg. Despite calling it a 'darling' of commodities so [see article]

Chinese Investors Offer Vale SA (ADR) Deal Worth $9 Billion
Tue 23rd Aug 2016 06:31 GMT
That was the first time since 1997 the company witnessed negative figures, mainly owing to the disaster at Samarco, accompanied by depressed global iron ore demand. Mr. Ferreira disclosed that the company was facing accrued debt of $10 billion, for which [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 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.