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 giant ArcelorMittal to pay $110 million fine in ...
Mon 22nd Aug 2016 15:01 GMT
Steelmaker ArcelorMittal has agreed to pay a $110-million (88-million-euro) fine for illegal price fixing in South Africa, the country's competition watchdog announced Monday. The Competition Commission launched a probe into steel producers in the [see article]

ArcelorMittal South Africa to pay record $110 mln to ...
Mon 22nd Aug 2016 14:51 GMT
JOHANNESBURG Reuters - ArcelorMittal's South African unit has agreed to pay a record 1.5 billion rand ($110 million) fine for colluding to fix steel prices, the competition watchdog said on Monday. The Competition Commission launched an investigation [see article]

Citigroup Inc. Initiates Coverage on Nucor Corp.
Mon 22nd Aug 2016 13:45 GMT
Other analysts also recently issued research reports about the stock. Bank of America Corp. reissued a buy rating on shares of Nucor Corp. in a report on Friday, June 17th [see article]

ArcelorMittal to pay R1.5bn fine for role in steel cartel ...
Mon 22nd Aug 2016 11:03 GMT
THE Competition Commission has fined steel monopoly ArcelorMittal SA R1.5bn the biggest fine imposed on a single company for anticompettitive behaviour in SA's history. The commission said Arcelor had admitted to its involvement in long steel and [see article]

STEELMAKING RAW MATERIAL NEWS


Iron ore shipments light again in July - Duluth News ...
Mon 22nd Aug 2016 04:00 GMT
Through July, the year-to-date Great Lakes iron ore totals stood at 26.8 million tons, a decrease of 3 percent compared to the same point in 2015, said the Lake Carriers' Association. Loadings in U.S. ports were down 113,000 tons for July compared to [see article]

Chinese official calls for speeding up capacity cuts
Mon 22nd Aug 2016 02:00 GMT
Fujian, Guangxi, Ningxia and Xinjiang as having disappointing results. Lian described 2016 as the key period for advancing the country's capacity reduction target, which is to cut steel and coal capacity by about 10 percent in the next few years [see article]

Bluescope seeking another $A15m of annual savings from ...
Mon 22nd Aug 2016 01:11 GMT
New Zealand operations recorded a $A20.3 million increase in losses on an ebit basis to $A53.5 million, reflecting lower regional steel prices and iron ore prices, offset by a weaker NZ/US dollar exchange rate and cost savings totalling $A45 million [see article]

BHP Billiton slumps to record 4.9bn annual loss
Fri 19th Aug 2016 15:23 GMT
was dragged into the red after a £3.8billion impairment on the value of its onshore gas operations in America and a £1.7billion charge relating to the disaster at its Samarco iron ore joint venture in November over which litigation continues. Like others [see article]

Milestone at Saldanha Bay's iron ore terminal - Independent ...
Fri 19th Aug 2016 09:39 GMT
Cape Town - Forty years after it opened, Saldanha Bay's bulk iron ore terminal will celebrate a milestone today when it reaches a billion tons in exports. Most of South Africa's iron ore exports pass through the terminal, which boasts the ability to [see article]

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



SELECTED STEEL INDUSTRY MAPS


Chinese seamless tube mills
Chinese seamless tube mills

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.