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.
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STEEL NEWS REPORTS

CORPORATE NEWS


scrap

Aion-JSW Steel wins Monnet Ispat bid; banks take 75% ... tweet
Thu 19th Jul 2018 01:00 GMT
The private equity fund-steel major consortium will hold 75% of the equity in the company out of which Aion Capital will have a 70% share with JSW Steel controlling 30% [full report]

Chamisa & Mnangagwa Totally Clueless That Zimbabwe ... tweet
Wed 18th Jul 2018 15:06 GMT
Zisco Steel was Africas renowned steel supplier, but is lying idle, while the country is left to import steel products from South Africa and China. In the first days of this new government, there was [full report]

Vale says to make new $390 million provision for Samarco ... tweet
Wed 18th Jul 2018 11:33 GMT
BRASILIA Reuters - Brazilian iron-ore miner Vale SA will make an additional 1.5 billion reais ($390 million) provision in its second quarter results to cover obligations due to the Samarco dam failu [full report]

7 sailors' bodies found; search continues tweet
Wed 18th Jul 2018 10:00 GMT
Loaded with 3,000 metric tons of steel, the Shunqiang2 collided with another cargo ship told Southern Metropolis Daily that the sailors on board came from Fujian, Shandong, Jiangsu and Heilongjian [full report]

Thyssenkrupp CEO says company needs to hike profitability ... tweet
Wed 18th Jul 2018 01:00 GMT
FRANKFURT Reuters - Thyssenkrupp's (DE:TKAG) new chief executive, Guido Kerkhoff, told employees the conglomerate needs to raise its profitability and restructure its Industrial Solutions and [full report]

INDUSTRY NEWS


Metinvest secures ECA-covered loan for Ilyich Steel capacity ... tweet
Thu 19th Jul 2018 07:54 GMT
Metinvest, the vertically integrated steel and mining group of companies, has secured a seven-year repayment buyer credit facility of some EUR43.2 million for its subsidiary Ilyich Steel, a steelmaking plant based in Mariupol, Ukraine. This facility is covered by an Austrian export guarantee issued by Oesterreichische Kontrollbank Aktiengesellschaft (OeKB), Raiffeisen Bank International AG acted as a sole lender [see news]

Total advances renewable energy projects in Brazil tweet
Thu 19th Jul 2018 03:15 GMT
Brazil generates about three quarters of its electricity from a rig contract canceled because of maritime disputes off the coast of Ghana. Europe seeks steel safeguards against U.S. tariffs 20 hou [see news]

BHP beats iron ore, petroleum expectations tweet
Wed 18th Jul 2018 23:13 GMT
BHP Billiton produced more iron ore than analysts had expected over the past 12 months, but revealed it would book a $US440 million charge related to the Samarco dam disaster. The company also confirm [see news]

Metinvest repays another part of PXF facility tweet
Wed 18th Jul 2018 14:40 GMT
Metinvest, the vertically integrated group of steel and mining companies, has settled another part of its pre-export finance (PXF) facility ahead of schedule [see news]

US tariffs on steel and aluminum could harm Israeli industry tweet
Wed 18th Jul 2018 11:48 GMT
The 25 percent tariff on steel and the 10 percent tariff on aluminum has the potential Canada, Mexico and the European Union also did not receive exemptions. Australia, Argentina, Brazil and South [see news]

NCLT approves Liberty Houses resolution plan to acquire ... tweet
Wed 18th Jul 2018 08:11 GMT
The company manufactures steel primarily for the automotive and engineering sectors The moratorium order passed under Section 14 shall cease to have effect, Jinan said in his order on Tuesday [see news]

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



SELECTED STEEL INDUSTRY MAPS


European BOF plants
European BOF plants

For other steel location maps, visit our steel industry maps page.




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 potential 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 2018 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2018 as compared to 2017 is that of a tiny reduction in the global capacity surplus [which will fall from ~602mt to ~598mt] and a small but significant improvement in world capacity utilisation at the crude steel level.



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
1639
2370
69.2%
2017
1754
2356
74.4%
2018
1782
2380
74.9%
Source: MCI analysis. Table last updated 15-Nov-17.

Graph below shows the relationship between steel prices and global plant loading - 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 plant loading, 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.




OTHER USEFUL METAL INDUSTRY WEBSITES


Why not check out the following websites?

American Metal Market (AMM) at www.amm.com
Steel Guru at www.steelguru.com
SteelOrbis at www.steelorbis.com
Metal Bulletin at www.metalbulletin.com