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


steelworker

Press Release - Primetals tweet
Thu 21st Jun 2018 01:00 GMT
Primetals Technologies supplied new electrics and automation for continuous annealing line for Tata Steel Packaging IJmuide [full report]

Odisha clears land for Tata Steel to set up industrial ... tweet
Thu 21st Jun 2018 01:00 GMT
The Odisha cabinet has approved a proposal by Tata Steel for utilising 1,735 acres of land for developing a private industrial park at Gopalpur in Ganjam district [full report]

Commercial Metals Company Reports Third Quarter 2018 ... tweet
Thu 21st Jun 2018 01:00 GMT
Commercial Metals Company (NYSE: CMC) today announced financial results for its third fiscal quarter ended May 31, 2018. Earnings from continuing [full report]

Provision of guarantee relating to the obligations of ... tweet
Tue 19th Jun 2018 01:00 GMT
Further to the announcement on 19 June 2018 that the shareholders of EVRAZ plc (the Company ) had approved the recommended proposal for the Company and its indirect subsidiary, JSC EVRAZ ZSMK, to provide a guarantee (the Proposed Guarantee ) of the obligations of the Companys wholly owned subsidiary EVRAZ Mezhdurechensk under certain management contracts, the Company is pleased to announce that the Proposed Guarantee has been entered into [full report]

Thyssenkrupp boards working hard to get Tata Steel deal ... tweet
Mon 18th Jun 2018 01:00 GMT
By Tom Kckenhoff DUESSELDORF Reuters - Thyssenkrupp's (DE:TKAG) needs to quickly clinch a deal for a planned European steel joint venture with Tata Steel (NS:TISC), its chief executive said [full report]

INDUSTRY NEWS


34 must-visit travel destinations with stunning views tweet
Thu 21st Jun 2018 09:51 GMT
4/34 SLIDES zhrzh/iStock/Getty Images Plus Wulingyuan, Zhangjiajie, China This UNESCO World Heritage Site is located in south-central China's Hunan Province glacier in Iceland is packed harder than steel and crystal clear. These incredible caves [see news]

China Car Batteries: Its the Technology tweet
Thu 21st Jun 2018 08:49 GMT
The recent Shenzhen stock exchange IPO of Ningde, Fujian based Contemporary Amperex Technology Ltd However, unlike what Chinese industry has done in steel and electronics, this race to the bottom will not have a major impact on world markets because [see news]

U.S. exempts certain steel products of Japan, four other ... tweet
Thu 21st Jun 2018 04:05 GMT
WASHINGTON The Commerce Department said Wednesday it has exempted some steel products from Japan and four other The Trump administration initially exempted Argentina, Australia, Brazil, Canada, the European Union, Mexico and South Korea from [see news]

GLOBAL BILLET WRAP: Prices pick up on post-Ramadan restocking tweet
Thu 21st Jun 2018 04:03 GMT
Buying activity was mainly concentrated in North Africa, where customers started to restock because prices for domestic finished long steel products The inventory for the product in Tangshan totaled 230,000 tonnes on Friday, down by 10,000 tonnes [see news]

Chinese shares close lower Thursday tweet
Thu 21st Jun 2018 03:09 GMT
Bucking the trend, steelmakers continued to register significant gains. Xining Special Steel soared by almost the daily limit of 10 percent to 5.51 yuan, while Baotou Steel Union climbed 6.62 percent to 1.61 yuan. Extensive growth was also seen in the coal [see news]

China, Hong Kong stocks wobble on trade war fears tweet
Wed 20th Jun 2018 22:23 GMT
The largest percentage gainers in the main Shanghai Composite index were Nanjing Inform Storage Equipment Group Co Ltd up 10.02 percent, followed by Xining Special Steel Co Ltd gaining 9.98 percent and Henan Yinge Industrial Investment Co Ltd up by 9.92 [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