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 body seeks relief from harmful tariffs ...
Tue 30th Aug 2016 05:11 GMT
TARIFF protection against cheap Chinese steel imports was harmful for local downstream steel manufacturers and should be abolished, an industry body said. The tariffs were imposed to protect primary steel producer ArcelorMittal SA (Amsa), which has now [see article]

FineMark National Bank & Trust Cuts Position in Nucor ...
Mon 29th Aug 2016 21:52 GMT
FineMark National Bank & Trust lowered its position in shares of Nucor Corp. by 7.8% during the second quarter, Holdings Channel reports. The institutional investor owned 8,960 shares of the company's stock after selling 761 shares during the period [see article]

Ameriprise Financial Inc. Decreases Position in Nucor ...
Mon 29th Aug 2016 21:52 GMT
Ameriprise Financial Inc. lowered its stake in shares of Nucor Corp. by 14.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission . The institutional investor owned 3,345,648 shares of the company's stock after selling 586,437 shares during the period [see article]

Labor & Employment a ' Wrongful Discharge - ' ...
Mon 29th Aug 2016 19:41 GMT
Bell v. Nucor Corp. 2:15-cv-03534; D.S.C. Holding: Even if a claim for wrongful discharge termination in violation of public policy is not limited to terminations involving violations of criminal law, a complaint must nevertheless allege what clear mandate of public policy was violated by the plaintiff-employee's You may have reached this page due to new security upgrades that have been implemented regarding multiple user logins [see article]

STEELMAKING RAW MATERIAL NEWS


Why Iron Ore Price Could Collapse: China Steel Glut ...
Mon 29th Aug 2016 14:46 GMT
Even if China's steel output remains high, we see 300Mmt of excess iron ore (IO) in fiscal 2017 and, as 77% of China's iron ore demand can be met at a weighted average cash cost of less than $14.50/mt (a 76% cash margin), we believe a collapse in IO [see article]

Spot Iron Ore markets continue to show down trend
Sun 28th Aug 2016 19:56 GMT
LONDON (Scrap Register): Spot iron ore markets continued trending down on Friday, said The Steel Index. An Australian miner held Spot rebar prices in Beijing and spot billet prices in Tangshan were stable. The most active DCE iron ore contract price [see article]

Positive changes among top 500 enterprises unveiled
Sun 28th Aug 2016 09:28 GMT
The Top 500 Enterprises in China for 2016 was unveiled on Saturday by the China Enterprise Confederation and the China Enterprises Directors Association in Changsha, capital of Central China's Hunan Province involving iron and steel, coal and [see article]

Companhia Siderurgica Nacional (SID) Trading 2.2% Higher
Sun 28th Aug 2016 01:55 GMT
Companhia Siderurgica Nacional (NYSE:SID which is active in the production of iron ore; Cement sector, which is involved in the manufacture of cement, as well as in the exploration of limestone and dolomite; Logistics sector, which consists of around [see article]

Canada iron ore exports surged over 10% in 1H 2016 ...
Fri 26th Aug 2016 18:48 GMT
The iron ore exports by Canada surged higher by over 10% during the initial half of 2016. However, exports declined during the month of June alone. Among provinces, Quebec topped with total exports of 1.972 Mt in June '16 and 19.463 Mt during the six [see article]

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



SELECTED STEEL INDUSTRY MAPS


Middle East DRI plants
Middle East DRI 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.