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


ore

Learn details of the global grain oriented electrical ... tweet
Wed 23rd May 2018 06:26 GMT
Cogent(Tata Steel), Wisco, Baosteel, Ansteel, Shougang and others. Access complete report at: www.themarketreports.com/report/1063200 When taking a good look at this report, based on the product, it is evident that the report shows the rate of production [full report]

Watch: NCLAT puts Essar Steel's insolvency process on ... tweet
Tue 22nd May 2018 01:00 GMT
The National Company Law Appellate Tribunal (NCLAT) on Tuesday ordered a status quo on insolvency of Essar Steel for two months as it admitted petitions of NuMetal and ArcelorMittal over the bidding eligibility. The NCLAT directed the resolution professional (RP), committee of creditors (CoC) and the NCLT not to pass any order in the ongoing insolvency process of Essar Steel, including liquidation of the debt-ridden firm till its further order. The appellate tribunal admitted the cross petiti [full report]

Tata Steel to raise Rs 16,500 cr debt to fund Bhushan ... tweet
Tue 22nd May 2018 01:00 GMT
Domestic giant Tata Steel today said it will raise Rs 16,500 crore through debt instruments to fund Rs 32,500 crore acquisition of Bhushan Steel Ltd (BSL) [full report]

NCLAT issues notice to Bhushan Steel RP, CoC on LSOTN-ANDT's ... tweet
Tue 22nd May 2018 01:00 GMT
NCLAT also impleaded Tata Steel, whose bid for the debt ridden firm has been approved, as party over LSOTN-REMOVET plea seeking to recover Rs 900 crore [full report]

NCLAT asks resolution professional, lenders, NCLT to ... tweet
Tue 22nd May 2018 01:00 GMT
The appellate tribunal also admitted the cross petitions filed by Russia's VTB Capital-based NuMetal and Arcelor Mittal, two resolution applicant challenging their disqualification for Essar Steel [full report]

INDUSTRY NEWS


Sierra Leone News: Over 400 senior Shandong staff to ... tweet
Wed 23rd May 2018 08:26 GMT
Shandong Iron and Steel Group Co. Ltd. is a Chinese state-owned enterprise, established in March 2008 with its Jinan based Iron & Steel Company Ltd. It is engaged in the smelting, processing, and sale of steel products. It acquired in 2015, African [see news]

Beyond Samarco, Randolph charts Boart revival tweet
Wed 23rd May 2018 07:05 GMT
Ask BHP's former iron ore and coal boss Marcus Randolph about the homicide charges that hang over his head, and he will turn the focus to those he says have been worse affected by the Samarco tailings dam failure of 2015. That of course includes the [see news]

Analysis On Electrolytic Aluminum Market Of China, 2016-2018 tweet
Wed 23rd May 2018 05:10 GMT
Trump signed a joint statement on steel and aluminum at the White House Xinjiang East Hope Non-ferrous Metal Co., Ltd. , Gansu Dongxing Aluminum Co., Ltd. , Henan Shenhuo Group Co., Ltd. , Hunan Zengshi Aluminum Group, Yunnan Aluminum Limited Liability [see news]

Iron ore quality differentials evolve as market fundamentals ... tweet
Wed 23rd May 2018 02:33 GMT
With the thinning out of low-alumina iron ore supply, mills were actively seeking low alumina historically the largest supplier of pellets into China prior to the Samarco incident. High alumina levels can hurt productivity in the short term in [see news]

Brazil imposes huge CVD on HR steel imports from China ... tweet
Tue 22nd May 2018 23:12 GMT
Xinhua reported that Chinas Ministry of Commerce has welcomed the decision by Brazil to refrain from anti-subsidy measures against imports of hot-rolled steel plate products. Wang Hejun, head of the ministry's trade remedy and investigation bureau, said [see news]

China welcomes Brazil's anti-subsidy ruling on hot-rolled ... tweet
Tue 22nd May 2018 19:21 GMT
China welcomes the decision by Brazil to refrain from anti-subsidy measures against imports of hot-rolled steel plate products, the Ministry of Commerce said in an online statement Tuesday. The statement came after Brazil Monday put on hold anti-subsidy [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