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

Three-year action plan aims for blue skies tweet
Mon 18th Jun 2018 21:26 GMT
The ratio of blue-sky days in the provinces of Hebei, Shanxi, Henan and Shandong was less than 60 percent and key industries such as steel, iron and coal-fueled power generation. The Ministry of Ecology and Environment launched a 10-month nationwide [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]

NLMK Group to employ new technology to boost quality ... tweet
Mon 18th Jun 2018 01:00 GMT
NLMK Group, a global steel company, is designing equipment to implement stamp charging process at Altai-Koks. This will boost coke quality and reduce the cost of its production through use of more cost-efficient grades of coking coals. Stamping technology is under implementation at Coke Plant No. 5, which launched in 2006 with a design capacity of 1.1 mtpa, and covers 25% of all Altai-Koks production needs. The scope of the project includes an overhaul of the plant, construction of a storage [full report]

Steel prices are likely to moderate - Jeferies tweet
Sun 17th Jun 2018 23:21 GMT
China has launched environmental checks (end May to early July) across 10 provinces incl. steel making provinces of Hebei, Henan, Jiangsu (52% of China output) to review corrective measures taken w.r.t violations found last year. Several EAF/induction [full report]

Steel Cord Market Analysis, Size, Share, Growth, Trends ... tweet
Sun 17th Jun 2018 18:38 GMT
Shandong SNTON Steel Cord, Bridgestone, Shougang Century, Tokusen, Tokyo Rope MFG, Hubei Fuxing New Material, BMZ, Henan Hengxing, Junma Tyre Cord, Sumitomo Electric Industries, Sodetal. Download Sample Brochure of Steel Cord Market spread across 113 pages [full report]

INDUSTRY NEWS


Port Birmingham plans steel warehouse despite tariffs tweet
Mon 18th Jun 2018 18:16 GMT
The size will be determined based on how the market is affected by a 25 percent tariff on steel imported from the Canada, Mexico and the European Union. Brazil, Argentina and Australia have agreed to limit steel exports to the U.S. to avoid tariffs [see news]

International steel conference canceled under trade tensions tweet
Mon 18th Jun 2018 14:28 GMT
The forum was created in December 2016 by major steel producers like the U.S., Europe, China, Japan, Brazil, India, and South Africa. At the first ministerial meeting, held in Berlin last November, the members agreed to such measures as regularly reporting [see news]

GLOBAL BILLET WRAP: Prices pick up on post-Ramadan restocking tweet
Sun 17th Jun 2018 17:24 GMT
Prices in most of the global steel billet markets showed positive dynamics in the The inventory for the product in Tangshan totaled 230,000 tonnes on Friday, down by 10,000 tonnes week-on-week, a billet trader in Tangshan told a local industry [see news]

JSPL's 4 steelmaking facilities at Angul plant to be ... tweet
Fri 15th Jun 2018 01:00 GMT
The company's plant at Angul is the largest steel manufacturing plant in Odisha, spread across 3,500 acres having 810 MW capacity power plant for captive use [see news]

Brazil steel sector to grow less - IABr tweet
Thu 14th Jun 2018 22:41 GMT
RTTNews reported that following the downward revisions of the growth of the Brazilian Gross Domestic Product, combined with the impact that the truckers' strike may have on economic activity, the Instituto Alo Brasil and specialists admit that the steel [see news]

Venezuela looks to cheaper iron ore to replace barite ... tweet
Thu 14th Jun 2018 22:39 GMT
Venezuela's cash-starved state-owned oil company, PDVSA, is turning to local iron ore to replace expensive barite as a weighting agent in drilling fluids. PDVSA could save around $100 million per year by substituting iron oxide for dollar purchases of [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