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


production

BHP sees no impact from trade tensions tweet
Wed 17th Oct 2018 20:04 GMT
BHP declined to give a date on when the Samarco joint venture between BHP and Brazil's Vale could resume iron ore production, after Vale's CEO suggested it could reopen at a third of its capacity at t [full report]

Vale sees possible Samarco restart in 2020, BHP uncertain ... tweet
Wed 17th Oct 2018 10:30 GMT
Samarco, a joint venture between Brazil's Vale (VALE3.SA) and mining major BHP (BHP.AX) (BLT.L), could resume iron ore production at a third of its capacity at the beginning of 2020, Vale's CEO said, [full report]

Bhushan Power & Steel auction: All eyes now on Oct ... tweet
Wed 17th Oct 2018 01:00 GMT
Tata Steel had moved NCLAT in April against the decision to consider Liberty House's bid. Separately, JSW Steel's bid got more than 90 percent of the votes of lenders [full report]

Irans minerals, mining exports rise 9.5pct in H1 2018 ... tweet
Wed 17th Oct 2018 00:08 GMT
According to Mehdi Karbasian, the head of IMIDRO, the worth of Irans minerals and mining exports stood at USD 9 billion in the past Iranian calendar year (ended on March 20, 2018). As Karbasian [full report]

Brazilian miner Vale will not chase big acquisitions tweet
Tue 16th Oct 2018 09:19 GMT
He said Vale would use excess cash to pay dividends and buyback shares and he expected its Samarco iron ore mine to restart production in 2020 [full report]

Steel Rebar market worth $154.08 Billion by 2021 tweet
Tue 16th Oct 2018 06:56 GMT
Access Free Sample Report tinyurl.com/y9jcjzom Major market players covered in the report are ArcelorMittal (Luxembourg), Gerdau S.A (Brazil), Nippon Steel & Sumitomo Metal Corporation (Japan), Posc [full report]

Turkey transfers operating rights of 7 coal fields to ... tweet
Tue 16th Oct 2018 01:39 GMT
The energy ministry said that the Turkish Hardcoal Authority signed agreements with Erdemir Madencilik, TUMAS and Emsa Enerji, while the Directorate of Turkish Coal signed agreements with Imbat [full report]

Aluminum Sheet/Strip Market 2025 Trend: Top Players Like ... tweet
Mon 15th Oct 2018 23:04 GMT
Kobe Steel, Shandong Nanshan Aluminum, Jiangsu ALCHA Aluminium, ALCOA, Norsk Hydro, Guangdong HECTechnology Holding, Yunnan Aluminium, AMAG, Henan Mingtai Al. Industrial, UACJ, Aleris, Novelis, Alumin [full report]

INDUSTRY NEWS


Iron Ore is Defying Gravity (For Now) tweet
Thu 18th Oct 2018 01:02 GMT
Need buying strategies for steel Request your two-month free trial According to Reuters - , top steelmaking city Tangshan has already started production curbs from Oct. 1, while Handan city [see news]

Mills in China's top steel city boost output despite ... tweet
Thu 18th Oct 2018 00:56 GMT
BEIJING/MANILA Reuters - Steelmakers in Tangshan, Chinas biggest steel producing city, are boosting output as local officials have failed to issue precise orders on output curbs even though the cit [see news]

Steel industry fortunes revive as product prices gain ... tweet
Wed 17th Oct 2018 23:47 GMT
Xu said steel companies in southern China, where restrictions on production activities are not as heavy as that in northern China, are expected to enjoy better profitability than those in the north. O [see news]

Acid and Fire Put Brakes on BHPs September Quarter tweet
Wed 17th Oct 2018 18:00 GMT
Samarco in Brazil remains suspended in September BHP revealed that works were progressing well at its South Flank iron ore replacement mine in Western Australia, which will replace the [see news]

The 9th Steelie Award winners announced tweet
Wed 17th Oct 2018 11:00 GMT
inners of the 9th Steelie Awards were announced at the Annual Dinner of the World Steel Association (worldsteel). The Steelie Awards recognise member companies or individuals for their contribution to the steel industry over a one-year period in a series of categories impacting the steel industry [see news]

Hong Kong: mega cities, mega heat. tweet
Wed 17th Oct 2018 09:37 GMT
Originally from Fujian, China, Shuk-man has been living In addition, buildings made of dense materials such as concrete and steel trap and retain heat longer than wooden structures used [see news]

BHP update on iron ore production in Jul-Sep quarter tweet
Wed 17th Oct 2018 00:38 GMT
BHP announced that total iron ore production increased by 10 per cent Mining and processing operations at Samarco remain suspended following the failure of the Fund3o tailings dam and Santar6m [see news]

Here Come the Trade War Price Hikes: Canton Fair Notebook tweet
Tue 16th Oct 2018 22:15 GMT
Fujian Reida Precision Co. supplies consumer products like the idea remains hypothetical since their products have not yet been dragged into the trade war. Tariffs on steel and aluminum imposed by [see news]

BHP Q1 Iron Ore Production Up 8%; But Cuts FY Copper ... tweet
Tue 16th Oct 2018 19:19 GMT
(RTTNews) - BHP (BHP.AX, BLT.L, BBL, BHP) reported that its total iron ore production for the first operations. . Mining and processing operations at Samarco remain suspended following the [see news]

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



SELECTED STEEL INDUSTRY MAPS


European welded tube plants
European welded tube 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