http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: 0.08
R/$ = 12.05Change: 0.25
Au 1186.86 $/ozChange: 1.06
Pt 1142.00 $/ozChange: 1.50
 
 
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 Metals News
Steel production by South African manufacturers dropped 11.8% year-on-year to 500 000 t in February, bucking a global trend that saw world crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) increasing by a marginal 0.6%...
INDUSTRY PURSUIT Project Aeroswift will be able to produce components with various metals, including titanium and stainless steel alloys
South African research institute the Council for Scientific and Industrial Research’s (CSIR’s) National Laser Centre (NLC) has confirmed that its large-area high-speed selective laser melting (SLM) system, also known as the Aeroswift project, is on track to produce...
IMPROVED PROFICIENCY The speed of a fibre laser is several times higher than that of a CO2 laser
The laser-cutting industry has transitioned in recent years from using carbon dioxide (CO2) lasers to fibre laser-cutting systems, notes Switzerland-based sheet metal cutting and bending equipment supplier Bystronic. The light source of a fibre-optic laser-cutting...
Article contains comments
More
 
 
Latest News
Updated 44 minutes ago State-owned South African Airways’ (SAA) had its first flight to Abu Dhabi on Sunday. The flight formed part of a codeshare partnership with Etihad Airways and would see SAA’s intercontinental reach expand. The daily service would see frequencies between Johannesburg...
Updated 1 hour 23 minutes ago There are no scheduled power outages for Monday, Eskom said. Spokesperson Khulu Phasiwe said Eskom expected the power grid to remain "moderate" throughout the day.
Deputy Minister in the Presidency Buti Manamela
Updated 1 hour 35 minutes ago A National Consultative Conference to discuss the draft National Youth Policy 2015-2020 (NYP2020) got under way in Johannesburg on Sunday. The two day conference is being attended by young people from around the country and nationally organised youth structures. lts...
More
 
 
Recent Research Reports
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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