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

Parastatal reform crucial in a new Zimbabwe tweet
Wed 15th Aug 2018 06:29 GMT
I was partly involved in the privatisation of the coke division of the Zimbabwe Iron and Steel Company (Zisco) in the past three years. This project was launched by the minister of Industry two weeks [full report]

Conditions For Brazil's Corporates Improving But Uncertainty ... tweet
Wed 15th Aug 2018 05:21 GMT
Vale's enhanced production and debt reduction bodes well for a stronger 2019. Moody's also forecast that Brazil's steel industry is set to keep turning around, however, more slowly. Higher steel pric [full report]

Erdogan fights a losing battle with Trump tweet
Tue 14th Aug 2018 17:41 GMT
Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at will require new leadership and an entirely different mentality, wrote Aykan Erdemir, a senior fellow at the Foun [full report]

Recep Tayyip Erdogan: Turkey is under siege economically tweet
Tue 14th Aug 2018 08:51 GMT
Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at to a further plunge in the Turkish currency, former Turkish lawmaker Aykan Erdemir, a senior fellow at the Found [full report]

Suitors put in bids for Bhushan Power assets tweet
Tue 14th Aug 2018 01:00 GMT
Tata Steel, Liberty House and JSW have submitted bids for the second time to acquire debt-laden Bhushan Power and Steel Ltd, news agency PTI reported citing sources. The bids were reportedly submitted to Committee of Creditors (CoC) late Monday night by the three parties. On August 6, the National Company Law Appellate Tribunal (NCLAT) had extended the deadline for submission of revised bids for BPSL by one week on the plea of Tata Steel, a resolution applicant in this [full report]

Japan utilities, Glencore set annual coal contract at ... tweet
Tue 14th Aug 2018 01:00 GMT
Japanese utilities and global mining giant Glencore have settled an Australian thermal coal import contract for April 2018-March 2019 at $110 a tonne [full report]

INDUSTRY NEWS


Yes, Turkish steel is a thing tweet
Wed 15th Aug 2018 04:08 GMT
Let's start with the basics. Though not on the scale of Canada or Brazil, Turkey is a significant exporter of steel to the US: Note how China doesn't make the top ten. As a direct exporter to the US, [see news]

Canada Moves Toward Potential Safeguard Tariffs on Steel ... tweet
Wed 15th Aug 2018 02:03 GMT
Second-quarter trade data from Statistics Canada show a spike in shipments from countries like Brazil, India, Turkey and Germany which resulted in U.S. tariffs of 25 percent on steel and 10 percen [see news]

More Foreign Steel Is Being Sent to Canada Amid Trumps ... tweet
Tue 14th Aug 2018 18:16 GMT
To be sure, countries exempt from the U.S. metals tariffs are also shipping more to Canada. Imports of steel and iron from Brazil and South Korea are up 317 percent and 20 percent respectively. Demand [see news]

As China trade row deepens, WH Group boosts U.S. pork ... tweet
Tue 14th Aug 2018 06:47 GMT
In April, China slapped a 25-percent import duty on most U.S. pork items in response to U.S. tariffs on Chinese steel and aluminum products Ma Xiangjie, president of WH Groups China business, Hen [see news]

Beijings former industrial complex Shougang district ... tweet
Tue 14th Aug 2018 02:39 GMT
It is a major statement of both achievement and intent. Shougangs entire steel-making complex a city within a city was relocated out of Beijing in the run-up to and immediate aftermath of Beijing [see news]

Hiap Teck Venture to boost financial performance tweet
Tue 14th Aug 2018 02:00 GMT
Eastern Steel is a JV between Hiap Teck and Shougang Group, one of the largest steel companies in China. Ironically, operations were halted in October 2015 due to the difficult market conditions at th [see news]

Bhushan Power & Steel IRP alleges leak of CoC meeting ... tweet
Tue 14th Aug 2018 01:00 GMT
Today CoC meeting of Bhushan Power & Steel was held . Surprisingly, sanctity and confidentiality of meeting was breached news of deliberations was also leaked, IRP Khandelwal said [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