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

5 crucial things to know about the tensions between the ... tweet
Sun 19th Aug 2018 07:39 GMT
Erdemir maintained that Erdogan's increasing estrangement from Two days later, Trump tweeted he would double steel and aluminum tariffs, predicting the Turkish lira would slide rapidly downward a [full report]

Crude steel production rises 17% in 4 months on year tweet
Sun 19th Aug 2018 00:31 GMT
IMIDRO data put the countrys crude steel production at 7.062 million tons during the same four months of the previous year. Meanwhile, Irans export of the steel products has experienced a 117-percen [full report]

U.S. Steel, ArcelorMittal both propose cutting health ... tweet
Sat 18th Aug 2018 17:00 GMT
U.S. Steel announced Thursday it would invest $750 million in Gary Works, and ArcelorMittal said earlier in the week it would spend $330 million to expand a plant in Brazil. But the steelmakers are sa [full report]

What can be done about Turkey's economic crisis tweet
Sat 18th Aug 2018 04:57 GMT
Now, isn't that in some ways a fair point, given Donald Trump's steep new tariffs on Turkish steel and aluminium AYKAN ERDEMIR: Turkey's economic problems, have been long in the making. Economists an [full report]

Global and India Steel Rebars Market Research by Company ... tweet
Fri 17th Aug 2018 18:28 GMT
Cost and Margin of Hebei Iron and Steel Table Sales Revenue, Volume, Price, Cost and Margin of Baowu Group Table Sales Revenue, Volume, Price, Cost and Margin of Jiangsu Shagang Table Sales Revenue, V [full report]

Emerging markets investors feel effects of Turkey crisis tweet
Fri 17th Aug 2018 04:01 GMT
He said now was the time to buy, arguing investors were too quick to dismiss Turkey as a basket case. Having bought shares in steel company Erdemir in April, he saw its market value decimated this mon [full report]

INDUSTRY NEWS


GLOBAL BILLET WRAP: Prices drop in most markets on low ... tweet
Sun 19th Aug 2018 17:17 GMT
Most global steel billet markets were shaken by a surge of low-priced China, Southeast Asia Billet prices in Chinas northern Tangshan region reached 4,040 yuan ($592) per tonne ex-works on August [see news]

ASX set to open stronger as Wall St finishes little changed tweet
Sun 19th Aug 2018 14:27 GMT
Providing further upward momentum for coke was a 4 per cent rally in steel prices in afternoon trading amid market talk that Tangshan, China's top steelmaking city, is considering moving production cu [see news]

DESECRATION OF BRITISH WAR GRAVES tweet
Fri 17th Aug 2018 18:00 GMT
One Chinese-owned shipping giant, Fujian Jiada, has been linked with the salvaging of The scrap is then shipped to China where it enters the global steel market, creating the prospect of the metal [see news]

Russia: Obukhovskoye Mine Group explodes tweet
Fri 17th Aug 2018 10:56 GMT
Obukhovskoye Mine Group, Rostov region, a part of Ukrainian DTEK, has suspended coalmining following an explosion. According to preliminary information, during the preparation for the explosion works at the long face No. 501, blast-hole charges detonated. There is no information on the collapse of the mine, but 5 miners were injured and one perished as… [see news]

China restarts suspended projects for construction of ... tweet
Fri 17th Aug 2018 02:36 GMT
Henan, Hunan, Hubei and Zhejiang provinces. In Shandong, electricity shortages are estimated at 3 gigawatts. This has led to weaker constraints in the coal mining sector. In May 2018, the National Ene [see news]

Dalian coke extends rally to record high as China output ... tweet
Fri 17th Aug 2018 02:00 GMT
Providing further upward momentum for coke was a 4 percent rally in steel prices in afternoon trading amid market talk that Tangshan, Chinas top steelmaking city, is considering moving production cur [see news]

Forged Steel Grinding Media Industry 2018 Top Manufacturers ... tweet
Thu 16th Aug 2018 18:03 GMT
The main market players are Longteng Special Steel, Oriental Casting and Forging, Sheng Ye Grinding Ball, Shandong Huamin, Jinan Huafu, etc. Download FREE Sample Copy of Forged Steel Grinding Media Ma [see news]

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



SELECTED STEEL INDUSTRY MAPS


Middle East DRI plants
Middle East DRI 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