Steel industry news and business information website.

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Our main business activity is steel industry capital investment appraisal.
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STEEL NEWS REPORTS

CORPORATE NEWS


scrap

BHP shares jump on record annual iron ore output tweet
Tue 17th Jul 2018 20:33 GMT
BHP and Vale were joint-venture partners in the Samarco iron ore business in 2015 when the tailings dam wall burst, sending a torrent of water along the Rio Doce river system that caused vast human an [full report]

Vale says to make new $390 million provision for Samarco ... tweet
Tue 17th Jul 2018 17:38 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]

China sets record daily steel output for third month ... tweet
Mon 16th Jul 2018 09:42 GMT
Last week, top steelmaking city Tangshan ordered mills to cut production for 6 weeks over summer. Steel output may not necessarily go down even though stricter restrictions are on the way, said Lu. [full report]

Thyssen and Kone owners held merger talks on elevator ... tweet
Sun 15th Jul 2018 01:00 GMT
FRANKFURT Reuters - Large shareholders of Thyssenkrupp (DE:TKAG) and Kone (HE:KNEBV) have held talks on a potential merger of the elevator businesses of the two companies, according to a German [full report]

Sg Capital Management Cut Steel Dynamics (STLD) Stake; ... tweet
Sat 14th Jul 2018 04:33 GMT
Some Historical STLD News: 07/03/2018 Trump tariffs could cost as well as create U.S. steel jobs; 16/05/2018 DEEP ECO: Steel Dynamics May Benefit, Iron and Steel Up in Acquiring Companhia Sideru [full report]

INDUSTRY NEWS


BHP revs iron ore engine as pricing tailwinds blow tweet
Tue 17th Jul 2018 20:43 GMT
Iron ore was the only commodity in red BHP will take another exceptional charge of $US440 million against its 2018 profits in relation to the Samarco dam failure at its Brazilian joint venture. Th [see news]

NCLT approves Liberty Houses resolution plan to acquire ... tweet
Tue 17th Jul 2018 20:23 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]

BHP beats iron ore, petroleum expectations tweet
Tue 17th Jul 2018 19:40 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]

Tangshan issues third industrial production curbs notice ... tweet
Tue 17th Jul 2018 19:10 GMT
That is the third notice issued by Tangshan within two weeks ordering industrial plants, including steel mills, coke producers and miners, to cut production. Here is a list of policies targeting mills [see news]

As Trade War Escalates, China's Steel Exports are Rising tweet
Tue 17th Jul 2018 09:23 GMT
Cities such as Tangshan, a steel production hub, have gone even further, mandating across-the-board production cuts until the end of August as they seek to lower particulate emissions. Such measures, [see news]

China's top steel city extends pollution measures until ... tweet
Tue 17th Jul 2018 08:02 GMT
Tangshan, Chinas top steel city, has extended recent emergency pollution control measures until July 21 because a smog warning for the area may reach its second-highest level, according to a document [see news]

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



SELECTED STEEL INDUSTRY MAPS


USA zinc coating lines
USA zinc coating lines

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