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

INDUSTRY AND COMPANY NEWS


melt shop steelworker

German steel stockholders saw limited restocking in January: ... 
Fri 21st Feb 2020 00:00 GMT
German stockholders have increased their stocks for long and flat products in January, but data shows that restocking activity was slow, according to latest figures from German stockholders association BDS. Flat steel stocks for January dropped 15.6% year on year to 1.2 million mt, seeing only a 4.1% increase in stocks from December [more]

City tax deals expiring 
Thu 20th Feb 2020 22:51 GMT
Alro Steel received a 12-year exemption in 2007 that concluded at the end of last year Douville-Johnston invested $1.4 million for new equipment for a new location in the citys North [view original report]

China steel, iron ore futures rise after rate cut, drop ... 
Thu 20th Feb 2020 20:33 GMT
MANILA: China's steel futures climbed on Thursday on expectations that Beijing's measures to prop that was initially driven by worries about tightening supplies of the steelmaking raw [more]

Iron ore pushes higher despite sluggish steel demand ... 
Thu 20th Feb 2020 05:18 GMT
observes, Chinas steel industry is already feeling the pain from sluggish demand amid disruptions Concerns about supply had been circulating after Brazils Vale posted Q4 [more]

Colakoglu targeting startup of new VOD plant in May 
Thu 20th Feb 2020 00:00 GMT
One of Turkeys largest steelmakers, Colakoglu, which placed an order with Primetals Technologies last October to upgrade an existing VD (vacuum degassing) plant in its Dilovasi meltshop to a VOD (vacuum oxygen decarburization) plant is targeting a May startup, S&P Global Platts learned from Ugur Dalbeler, CEO of Colakoglu, Wednesday. We are targeting [view full press release]

Chinese steel mills may cut production due to oversupply: ... 
Wed 19th Feb 2020 16:21 GMT
Brazil also has some heavy rains as well I would be very surprised if the Chinese mills do not cut steel production. What they often do is carry out maintenance work which is a proxy [more]

Befesa S.A.: Befesa sets course for long-term organic ... 
Wed 19th Feb 2020 16:00 GMT
The construction of the first electric arc furnace (EAF) steel dust recycling plant in Jiangsu is expected to be completed approximately by the end of 2020. The second plant under development in [see press release]

Terry McCrann: Fortescues China fortunes deliver $800m ... 
Wed 19th Feb 2020 03:11 GMT
But when the opposite happens and demand is running ahead of supply and that was very clearly the case last year thanks in part to the continuing problems of Brazils Vale post-Samarco (and [view full report]


We also show stainless steel sector news and other specialty metal news reports.
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SELECTED STEEL INDUSTRY MAPS


Map of European BOF plants

European BOF plants

For other steel location maps, visit our Steel Maps page.




STEEL WORKS CAPITAL INVESTMENT COSTS


BOF SLAB PLANT

capex cost of BOF steel plant
All estimates are in 2016 US dollars.
For further info visit our
capital investment costs page.

Capital costs describe outlays for an integrated slab plant with continuous casting, typically with coke, sinter etc. Representative modernisations include:

  • CSA slab mill installations in Sepetiba, Brazil
  • CSN investment in Itaguai, Brazil
  • CVRD-Baosteel joint venture in Vitoria, Espirito Santo in Brazil
  • Sinosteel Corporation's outlay in Jharkand, India.

Average cost: $4300m
Typical capacity: 4210 kt
Sample size: 12
Indicative cost/tonne: $1050/t


INTEGRATED HOT STRIP MILL

hot strip mill capital investment costs
All estimates are in 2016 US dollars.
For further info visit our capex costs 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 I&S investment in Fangchengang Port in China
  • ArcelorMittal modernisation in Karnataka, India
  • Tata joint venture with VSC & Vicem for investment in Vung Ang in Vietnam.

Average cost: $7560m
Typical capacity: 6660 kt
Sample size: 16
Indicative cost/tonne: $1200/t




EMPLOYMENT BENCHMARKS


steel plant employment benchmarks

Chart above shows current employment levels at 114 different firms around the world - companies that make flat, long and/or tubular carbon steel products. An average firm with a production potential of ~3 mt steel/year typically thus has ~4000 employees. If your company employs more than this, please call us - our technical consultants can assist with steel plant productivity improvement.

To discuss the interpretation of this chart and/or further information (including employment benchmarks for specialty steel output) please email us at the address shown at the foot of the page.




INDUSTRY SUPPLY & DEMAND FORECASTS FOR YEAR 2020

Table below shows global crude steel output volumes and capacity figures - as assessed by World Steel Association and by the OECD to 2020 - and resulting calculation of steelmaking capacity utilisation. The overall picture for 2020 as compared to 2019 is that of a very small increase in global capacity utilisation at crude steel level, from 79.7% to 79.8%.


Year
Production
million t
Capacity
million t
Capacity
Utilisation
2012
1560
2100
74.3%
2013
1650
2271
72.7%
2014
1670
2316
72.1%
2015
1620
2334
69.4%
2016
1627
2281
71.3%
2017
1689
2245
75.2%
2018
1819
2291
79.4%
2019
1838
2306
79.7%
2020
1852
2322
79.8%
Source: MCI analysis. Table last updated 26-Apr-19.




ABOUT OUR INFORMATION AND SUPPORT SERVICES

This site is owned and operated by Metals Consulting International Limited (MCI), and provides site visitors with steel sector news, price, cost and related industry information.

MCI is a privately-owned London based management consultancy firm. Our experts specialise in market assessments, technical evaluations and financial modelling.

MCI's main business activity is steel sector investment appraisal covering ore mining, raw material supply, iron and steelmaking, casting and rolling operations, and metal distribution for clients worldwide. Our main projects centre on business restructuring and plant modernisation, including performance turnaround; much of our work is for governments, shareholders and other financiers. Feel free to telephone us on +44 775 149 0885 for a no-obligation initial discussion about our advisory services.