http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.06Change: 0.06
R/$ = 13.42Change: 0.03
Au 1133.36 $/ozChange: -2.13
Pt 1012.00 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 04, 2008

World may be facing steel shortage

Back
Africa|CoAL|Environment|Africa|Energy|Product|Service|Steel|Iron Ore|Iron-ore
Africa|CoAL|Environment|Africa|Energy|Service|Steel|Iron Ore|Iron-ore
africa-company|coal|environment|africa|energy|product|service|steel|iron-ore|iron-ore-person
By Stewart Bailey and Dale Crofts (Bloomberg News)



ArcelorMittal Chief Executive Officer Lakshmi Mittal said the world may be facing its first steel shortage in decades because of accelerating demand and a lack of investment when the metal was trading at lower prices.

"There is short supply; all steel companies are running at full capacity," Mittal said last week in an interview in New York. "We're facing for the first time in decades a potential shortage of steel."

Steel prices have surged as India and China build more bridges and houses and their increasingly affluent populations buy more cars and appliances. Steel production has failed to keep pace with the demand gains because of rising costs and a lack of investment in new plants in the past decade.

Hot-rolled steel sheet, the benchmark product used in cars and appliances, climbed to an average $1 020/t in the US in May from $850/t in April, Purchasing magazine said on May 30. Prices have gained 76% since January and are about 86% higher than a year ago.

The "volatile years of boom and bust" in steel prices have been relegated to the past, Mittal said. Users of steel will have to "adjust to the new reality and the new pricing environment."

Higher prices for iron-ore and energy have raised the costs of making and transporting steel. A shortage of the metal in the US, partly because of lower imports, has allowed producers to increase prices. Inventories at US service centres were 15% lower at the end of April than a year earlier, the Metal Service Center Institute said in a May 16 statement.

ArcelorMittal will continue its strategy of buying producers of the raw materials it uses to make steel, such as coal and iron ore, Mittal said. The company wants to control about 80%of the iron-ore it uses in its mills, compared with about 45% currently.

"We will not spend blindly," he said. "We are looking at each and every acquisition that creates synergies for us. Not only looking upstream, we're also looking downstream."

ArcelorMittal is digging iron-ore mines in the West African states of Mauritania, Liberia and Senegal and has bought a 14,9% stake in Australia's Macarthur Coal.

The company also is seeking to increase the portion of its production from emerging markets to as much as 60%, from the current level of 45%, he said. The company will try to expand output in South Africa, Brazil, Turkey, Kazakhstan, India and Eastern Europe, he said.

Attempts to boost production from Russia and China may be stymied by those governments' unwillingness to allow foreign companies to control steel output, which is viewed as a strategic industry, he said.

 


Edited by: Bloomberg
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
More
 
 
Latest News
Deputy President Cyril Ramaphosa
Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Frost & Sullivan ICT programme manager Gareth Mellon
It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96