Steel industry news and business information website.

sotn
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


steelworker

N Chandrasekaran to take over as Tata Group head tomorrow
Mon 20th Feb 2017 00:00 GMT
In the aftermath of ex-chairman Cyrus Mistry's ouster from Tata Sons, TCS' Chandra was picked for the corner office at Tata [see article]

India Extends Anti-Dumping Duty On Some Chinese Steel ...
Mon 20th Feb 2017 00:00 GMT
Indian steelmakers such as JSW Steel, Tata Steel, and Steel Authority of India have lobbied for more measures to protect them from cheaper imports from China, Japan and South Korea [see article]

Bimha admits revenue lost as tones of scrap metal looted
Fri 17th Feb 2017 11:30 GMT
Research show steel was, as of 15 February 2017 ways that Bimha was exploring to assist government meet pension and salaries arrears for ZISCO employees. Finance minister Patrick Chinamasa had promised to allocate some money but it has remained [see article]

RAW MATERIAL NEWS


Iran rejects steel dumping accusation
Mon 20th Feb 2017 02:59 GMT
TEHRAN: While Iran has been accused of steel dumping in global markets, IMIDRO head said the false allegation has been made by some who are worried about losing their market. Managing Director of Iranian Mines and Mining Industries Development and [see article]

Iron ore surge defies doubters
Sun 19th Feb 2017 05:11 GMT
Prices of iron ore, the nations biggest export, continue to defy expectations as Chinese steel demand and prices hit new highs a lull last week in the wake of increased production by Brazils Vale. The price rose US31c to $US90.37 and looks [see article]

Brazil's crude steel output up 13% in January
Fri 17th Feb 2017 06:53 GMT
Crude steel output in Brazil increased by 13.30% year-on-year in January, according to figures released by national steel association Ao Brasil on Friday February 17. Production came to 2.83 million tonnes, compared with 2.50 million tonnes a year before [see article]

ChelPipe Group sold over 1.7 million tons of pipes
Fri 17th Feb 2017 00:00 GMT
In 2016, Chelyabinsk Pipe-Rolling and Pervouralsk New Pipe Plants - the pipe division of ChelPipe Group - shipped 1.713 million tons of pipes to consumers, which is 15% less than the volume of 2015 (-306 thousand tons). The volume decline was driven by changes in shipment schedules for Gazprom (The Power of Siberia and North European Gas Pipeline) projects, as well as a decrease in demand on domestic and foreign markets. The largest drop is recorded in the segment of large diameter pipes (-27 [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.