Sunday, November 25, 2007

Top producer rankings in iron ore and steel

We have just published the top producer rankings in the steel sector, based on capacity as at the end of 2007.

In iron ore, CVRD leads the field with 324 mt of iron ore capacity (20% of the world total), and Rio Tinto second (209 mt) and BHP Billiton third (152 mt). BHP Billiton and Rio Tinto combined would therefore take the number one slot with ~360 mt, or approximately 22% of world supply. Currently, the top three have a worldwide supply share of 42%.

In steel flat products, Mittal Arcelor is in number one position with ~103 mt of flat roll capacity, US Steel is a fairly distant number two with ~32 mt flat product capacity and Nippon Steel is in number three slot with ~30 mt/year of capacity. The top three flat product producers currently have a world supply share of 26.5%.

In steel long products, Mittal Arcelor is again number one, but with just 8% or so of world supply (~ 47 mt capacity / year from a world total of about 596 mt). Gerdau of Brazil is number two (with approx 20 mt capacity) and Evrazholding of Russia is number three with ~15 mt/year of long product capacity. The top three long product producers together control just 14% or so of world supply.

Compared to iron ore production or flat steel product supply, the industry structure in steel long products therefore remains very fragmented. Perhaps long products is the next area where significant industry consolidation might therefore be expected in 2008 ?

For full top 20 capacity rankings in iron ore, flat and long products, visit us at

Labels: , , , , ,

Friday, November 23, 2007

Iron ore prices to soar

The latest view on the 2008 iron ore price is that it will increase by 30-50% over 2007 price level. Interestingly, this perspective is not driven by the BHP-Billiton - Rio bid. Rather, this view emerges for a different reason - which is urbanisation in China and India. According to the report, demand for steel will increase as people move from rural agriculture-based activities to manufacturing or service-based activities located in cities.

For original report, see

Labels: , , ,