Friday, February 13, 2015

ArcelorMittal surprises on debt despite bearish outlook

ArcelorMittal, the world's largest producer of steel, warned on Friday of lower profits this year but surprised the market by managing to cut its debt to the lowest level since the company was created in 2006.
The company, which produces about 6 percent of the world's steel, said it expected core profits to drop to between $6.5 and $7 billion in 2015, from $7.2 billion in 2014, as iron ore prices sapped earnings in its mining business and steel market growth cooled from last year. To read more, visit

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Thursday, January 29, 2015

Al-Tuwairqi and POSCO to exit from Pakistan

Well - here is a shocking news report.

It would seem that Al-Tuwairqi of Saudi Arabia and POSCO of South Korea, who together invested in the TSML DRI plant in Pakistan, have been unable to secure the low-cost natural gas needed to operate the new DRI facility. Requests to the government of Pakistan to consider TSML’s position have seemingly been ignored; with the result that the DRI plant has not operated since Septem­ber 2013.
In a board meeting held on 27th January 2015 in Dam­­mam, Al-Tuwairqi and POSCO thus decided to permanently close the facility and to exit Pakistan. The investment in the DRI facility was around $340 million. TSML on completion of its integration with steel production was envisioned to be the largest fully integrated steel complex in Pakistan with a capacity of ~1.5 million tonnes per annum. TSML’s exit from Pakistan will therefore be a real blow to the industry.
For this and similar news, check out our steel industry newsfeed at

Andrzej M Kotas
Chief Executive

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Monday, December 22, 2014

World steel news on your mobile phone

We have re-launched our mobile website, which now works on mobiles, smart phones, tablets as well as PCs.
For free 24/7 steel industry news and information, visit us at

Andrzej M Kotas
Managing Director
Metals Consulting International Limited


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Saturday, November 08, 2014

Free steel industry message board

We have launched a free steel industry message board for visitors to Site visitors can post their company classified ads for FREE to an international steel industry audience.
To see the message board, please visit
Thank you.

Andrzej M Kotas
Chief Executive

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Thursday, September 18, 2014

US spot prices for natural gas

Gas consumers in the USA will be watching US spot prices for natural gas with interest. These gas prices have been dropping month by month, with each of the last six monthly price movements being downwards.

As a result, the natural gas spot price (in US $ per million metric British Thermal Units) at the Henry Hub terminal in Louisiana has now fallen from $.5.97 in February 2014 to just $3.88 in August 2014.

Can the downward price trend continue much longer?

For monthly US gas prices, visit

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Sunday, July 06, 2014

Greenfield steel projects not viable

Greenfield steel industry projects are not viable, says Lakshmi Mittal.

Given the glut of steel production capacity around the world, ArcelorMittal will not be pursuing greenfield projects or significant merger-and-acquisition activity. The Luxembourg-based steelmaker, the world's largest, is instead focused on using its existing capacities most effectively, Mittal said.

Lakshmi Mittal was speaking at the AMM XXIX Steel Success Strategies Conference in New York on 17th June.

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Tuesday, July 01, 2014

Andrzej M Kotas - LinkedIn profile

In case it is of interest, you can see my LinkedIn profile (including some of the previous roles I have had in the steel sector) at

Andrzej M Kotas, MBA
Managing Director
Metals Consulting International Limited

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Wednesday, June 25, 2014

Steel industry crossword puzzle

We have a new crossword puzzle on our website, to test your skills.
26 different clues, all relating to iron and steel.

Visit to try our latest puzzle.
Good luck…

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Saturday, April 26, 2014

Transport cost advantages - steel production in Africa

Our consultants have just been looking at the economics of iron and steelmaking in Africa. This is an interesting topic because of the various raw material export bans and import tariffs that often come into play.

However, we have also been looking at competitors’ steel transport costs from countries such as Japan, South Korea and India, to ship steel in to East Africa. Currently, this transport cost is around $75/tonne or more, a factor which really transforms the profitability of steel production in Africa.

For further information about the cost competitiveness of steel production in Africa, contact our steel industry economists.

Andrzej M Kotas, MBA
Managing Director
Metals Consulting International Limited

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Monday, March 03, 2014

China Bans New Steel Industry Projects

To alleviate oversupply in the blown up steel sector, China has decided to ban new steel sector projects for the next 4 years. Overcapacity has been a cause of concern for China’s steel industry for some years, causing huge losses at highly indebted mills, wasting resources and compelling steel mills to depend on government subsidies.

The Chinese government has put additional capacity creation under firm controls and the amount of further capacity will be extremely small. China has about 300 million tons of surplus steel capacity, which is equivalent to roughly double the total output of the European Union last year. Even then, mills have continued to expand and added ~70 million tonnes of new steel production capacity in 2013.

As part of a plan to clean up the environment and deal with steelmaking overcapacity, the Chinese government will also close ~90 million tonnes of obsolete steel mill capacity in the Northern provinces by 2017.

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