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

ArcelorMittal SA pricing parity policy likely to boost ...
Thu 25th Aug 2016 03:43 GMT
The South African government had launched an investigation in 2008 to determine ways to lower domestic steel prices after allegations by customers that Arcelor Mittal SA was charging high prices. The investigations also covered other steel firms [see article]

Nippon Steel seeks advisers for split of Brazil's Usiminas ...
Wed 24th Aug 2016 19:10 GMT
SAO PAULO, Aug 24 Reuters - Nippon Steel and Sumitomo Metal Corp is working on a plan to split Usinas Siderrgicas de Minas Gerais SA (Usiminas) into two separate units, in a last ditch attempt to end a two-year battle with Techint Group for control of the Brazilian steelmaker, two people familiar with the matter said on Wednesday [see article]

ArcelorMittal puts end to flat steel import-parity pricing ...
Wed 24th Aug 2016 05:53 GMT
THE Department of Trade and Industry has struck a deal with ArcelorMittal SA that will see the steel producer remove import-parity pricing with immediate effect. The agreement has been long in the making, and was strengthened by the record R1.5bn fine [see article]

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]

STEELMAKING RAW MATERIAL NEWS


Metalloinvest announces financial results for the first ...
Thu 25th Aug 2016 07:48 GMT
Metalloinvest (the Company), a leading global iron ore and HBI producer, and one of the regional producers of high-quality steel, today publishes its IFRS financial results for the half year ended 30 June 2016 [see article]

Ibovespa Falls to Two-Week Low as Oil Drop Punishes Petrobras
Wed 24th Aug 2016 15:32 GMT
While a recent surge in deals indicates that the reforms announced by the new federal administration are luring investors to local assets, the drop in raw materials from oil to iron ore may endanger Steelmakers Cia. Siderurgica Nacional SA, known [see article]

Ibovespa Fluctuates as Commodities Drop Offsets Deal ...
Wed 24th Aug 2016 13:33 GMT
While a recent surge in deals indicates that the reforms announced by the new federal administration are luring investors to local assets, the drop in raw materials from oil to iron ore may endanger Steelmakers Cia. Siderurgica Nacional SA, known [see article]

Essar Vizag terminal handles 2.19 MT iron ore in Q1 ...
Wed 24th Aug 2016 11:59 GMT
Essar Vizag Terminals Ltd (EVTL) handled 2.19 million tonnes (MT) iron ore cargo in April-June quarter this fiscal, a jump of over sevenfold, aided by improved performance in the steel sector. EVTL, a wholly-owned subsidiary of Essar Ports Ltd (EPL [see article]

Companhia Siderurgica Nacional (SID) Trading Down 5.8%
Wed 24th Aug 2016 11:02 GMT
Companhia Siderurgica Nacional (NYSE:SID)'s share price fell 5.8 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 [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.