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 NEWS REPORTS

CORPORATE NEWS


mining

Tata Steel, Thyssenkrupp will not spin off joint venture ... tweet
Mon 16th Oct 2017 01:00 GMT
By Maytaal Angel BRUSSELS Reuters - Tata Steel (NS:TISC) and Thyssenkrupp (DE:TKAG) have no plans to spin off their pending European steel joint venture within the next two to three years, [see article]

Stake in Rosneft held by Glencore-QIA Consortium tweet
Mon 16th Oct 2017 01:00 GMT
RNS Number: 7352T Glencore PLC 16 October 2017 Glencore plc Baar, Switzerland 16 October, 2017 Stake in Rosneft held by Glencore-QIA Consortium Glencore refers to the announcement on 8 September 2017 in which it announced that the Consortium had concluded an agreement with CEFC China Energy Company Limited ( CEFC ) for the disposal by the Cons [see article]

POSCO Signs PosMAC Supply Agreement with An English Tube ... tweet
Mon 16th Oct 2017 01:00 GMT
On October 12 at the POSCO Center, POSCO signed a PosMAC supply agreement for pipes with Top Tubes, the English pipe manufacturer specializing in cold-rolling and plating. The agreement ceremony was attended by 10 interested parties, including A. [see article]

STEEL WEEK IN BRIEF: China back to the market, effects ... tweet
Sun 15th Oct 2017 03:20 GMT
The Brazilian steel industry was disappointed by the imposition last week of anti-dumping measures by the European Commission (EC) against imports of HRC from Brazil, national steel industry Ao Brasil said. Severstal could be set to increase the volumes [see article]

Iran opens major sponge iron mill tweet
Sun 15th Oct 2017 01:57 GMT
IMIDRO head Mehdi Karbasian said the sponge iron plant was the second largest of the eight major national projects which he hoped to become operational by the end of the current Iranian year on March 20, 2018. Steel is a strategic commodity for Iran [see article]

Tata Steel targets 20% women in workforce by 2020 tweet
Sun 15th Oct 2017 01:00 GMT
Tata Steel targets to have 20%women in its workforce by 2020 as gender diversity ensures availability of different mindsets to deal [see article]

Iron ore sinks as market readies for post-congress China tweet
Thu 12th Oct 2017 19:31 GMT
In Tangshan, an industrial city in China's northeastern Hebei Province and a major steel production hub, output curbs have been in place since September. In Handan, also in Hebei Province, and in Zhengzhou, in the central province of Henan, a 50% cut [see article]

RAW MATERIAL NEWS


Chinas Factory-Gate Prices Hit Six-Month High tweet
Mon 16th Oct 2017 00:56 GMT
Some steel mills, smelters and coal companies have cranked up production of the impact will ripple through into global commodity markets. Top steelmaking city Tangshan became the latest to enforce production cuts this month, ahead of the previous [see article]

GLOBAL BILLET WRAP: Major markets show mixed dynamics tweet
Sun 15th Oct 2017 17:34 GMT
Steel billet prices in Turkey bucked the general global trend the country was having a week-long national holiday one week ago. The regional Tangshan government shut down rerolling mills that had not switched their heating fuel from coal to gas from [see article]

China steel rallies amid pre-winter cuts, raw materials ... tweet
Fri 13th Oct 2017 13:00 GMT
So when steel prices rise, mills have bumper profits and this has driven up raw materials too. Chinas top steelmaking city of Tangshan became the latest to enforce production cuts this month, ahead of the previous deadline of Nov. 15, when winter [see article]

U.S. Steel (NYSE:X) has been upgraded from Hold to Buy ... tweet
Fri 13th Oct 2017 02:00 GMT
and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil [see article]

Europium Market Analysis and Assessment 2015 - 2025 tweet
Fri 13th Oct 2017 00:01 GMT
The key players in europium market include Rare Element Resources, Avalon Rare Metals Inc., Molycorp, Lynas, Minmetals Corporation, Baotou Steel Rare-Earth, Xiamen Tungsten, Great Western Minerals Group Ltd., Indian Rare Earth, Arafura Resources Ltd. and [see article]

Photo story: delegates to attend 19th CPC National Congress tweet
Thu 12th Oct 2017 20:10 GMT
These delegates not only come from traditional industries like manufacturing, transportation, steel and coal, but also from sectors of Tongdao Dong Autonomous County, central China's Hunan Province, June 7, 2017. Su, as an inheritor of Dong brocade [see article]

GLOBAL SLAB WRAP: Prices weaken amid falling flat steel ... tweet
Thu 12th Oct 2017 10:02 GMT
However, some clients were bidding less than $500 per tonne fob, cautious about the declining prices for iron ore and coking coal. By the end of the month, the slab market was affected by a strong drop in the prices of hot rolled coil (HRC) and steel plate [see article]

Less penetrated consumer discretionaries to exhibit faster ... tweet
Thu 12th Oct 2017 03:09 GMT
Indian companies are very competitive in steel because we have iron ore, we have coal, we have the technology Higher interest rates will actually be great for banks because banks have CASA but the other segments what you mentioned, dont have [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 PLANT CAPITAL INVESTMENT COSTS



BOF 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 see our steel capex database page.




EMPLOYMENT BENCHMARKS



steel sector employment benchmarks

Chart above shows current 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 SUPPLY & DEMAND FORECASTS FOR YEARS 2017-2018

Table below shows global crude steel production volumes and capacity figures - as assessed by World Steel Association and by the OECD to 2017 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2017 as compared to 2016 is that the global capacity surplus will get marginally worse [increasing from a capacity excess of ~784mt to ~790mt]. MCI's own estimates suggest that excess global crude steel capacity is likely to remain between 750-800 million metric tonnes in 2018.



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
1620
2368
68.4%
2016
1623
2407
67.4%
2017
1632
2422
67.4%
2018
1640
2425
67.6%
Source: MCI analysis. Table last updated 22-Dec-16.

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

In 2017, on the basis that world capacity utilisation remains largely at 2016 levels of approx 67.4% (see table), MCI's consultants expect steel prices to remain at 2016 levels. In 2018, assuming a very small improvement in global capacity utilisation, we forecast just a tiny increase in steel price levels of the order of $5/tonne (hot rolled coil and reinforcing bar). For other products and / or for steel price forecasts through to 2020, please contact us.