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

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]

Urban Land Institute reveals recommendation for Georgetown ...
Fri 23rd Sep 2016 21:18 GMT
ULI panelist Ken Kay discusses the advisors' recommended modifications for the ArcelorMittal steel mill site. (Max Hrenda/South Strand News). After spending [see article]

USW Endorses Trade Circumvention Cases: Our Market is ...
Fri 23rd Sep 2016 19:11 GMT
(Source: USW - United Steelworkers) Sep 23, 2016 Contact: Holly Hart (202) 778-4384 (Pittsburgh) - United Steelworkers (USW) International President Leo W. Gerard issued the following statement today on the filing of new trade circumvention cases at the U.S. Department of Commerce (DOC) by ArcelorMittal USA, Nucor Corporation, AK Steel Corporation, the United States Steel Corporation, Steel [see article]

The changing face of Europe's flat steel industry - Platts ...
Fri 23rd Sep 2016 14:45 GMT
As China looks set to create the world's second largest steelmaking company through the merging of Baosteel and Wuhan I&S, Europe's steel industry is on the brink of a pair of mergers that would genuinely transform the region's industry. Assuming Tata [see article]

STEELMAKING RAW MATERIAL NEWS


Chart Pattern: Tenaris SA (ADR) Can't Be Less Risky. ...
Sat 24th Sep 2016 10:58 GMT
The Tubes segment includes the production and sale of both seamless and welded steel tubular products, and related services primarily for the gas and oil industry, principally oil country tubular goods (OCTG) used in drilling operations, and for other [see article]

In Australia, Chinas Appetite Shifts From Rocks to Real ...
Sat 24th Sep 2016 10:00 GMT
Chinas breakneck growth fueled an iron ore boom in Western Australia. Now, Chinese investors are fleeing a cooling economy by investing in Australian homes [see article]

Goan iron ore miners to re-start mining in full swing ...
Sat 24th Sep 2016 08:20 GMT
Amid expectations of over 50 per cent increase in the cap of quantity allocation, iron ore miners in Goa are set to resume post-monsoon operations by the first [see article]

Chinese miners to lift thermal coal output - Financial ...
Fri 23rd Sep 2016 22:57 GMT
But it does help keep a lid on coal prices in China, reducing pressure on thermal power generators and preventing the rally in coal prices from feeding through to the power sector. Coal and steel prices have been on a roller-coaster ride in China this [see article]

Northwest Pipe Company (NWPX) is Trading Higher on Unusual ...
Fri 23rd Sep 2016 22:30 GMT
Northwest Pipe Co is a North American manufacturer of large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, related to drinking water systems. It also manufactures other welded steel pipe products [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.