Steel Manufacturers Increase Capital Spending in 2017

Researched by Industrial Info Resources (Sugar Land, Texas)--In January, Industrial Info hosted a webinar regarding the 2017 Global Outlook for the Metals & Minerals Industry. At that time, Industrial Info was tracking $133.3 billion in active steel mill projects globally scheduled to begin construction in 2017. Currently, that number has fallen to $83.7 billion, as $49.6 billion worth of projects have been pushed out to future years, cancelled or placed on hold.

Of the $83.7 billion currently active, $3.6 billion started construction during the first five months of 2017, and another $22.3 billion is approved and scheduled to begin construction during the remainder of the year. In 2016, $27.2 billion worth of steel mill projects started construction. So the market has almost surpassed 2016's level of activity, and the year is not even half over.

"We are on pace to significantly exceed 2016 steel mill spending, as most steel producers are increasing capital expenditures in 2017," said Joseph Govreau, vice president Metals & Minerals Industry for Industrial Info.

Globally, the majority of projects are happening in Asia, but mature markets like the U.S. have improved and companies are investing in new technology and growth markets. A few examples of ongoing growth initiatives in the U.S. include United States Steel's (NYSE:X) (Pittsburgh, Pennsylvania) $1 billion asset revitalization program and ArcelorMittal S.A.'s (NYSE:MT) (Luxembourg, Luxembourg) restart of the Burns Harbor steel mill blast furnace in Indiana.

In North America, project construction in the Metals & Minerals Industry is up 37% in 2017 compared with 2016, according to the March update of Industrial Info's North American Industrial Project Spending Index. The steel sector is one of the sectors leading the way for improved project activity in North America.

Globally, the largest steel mill project to begin construction, so far, in 2017 is Alliance Steel (M) Sdn Bhd's grassroot integrated steel mill complex in Kuantan, Malaysia. The $2.5 billion project is being jointly developed by China's Guangxi Beibu Gulf Iron & Steel Investment Company Limited and Guangxi ShengLong Metallurgical Company Limited. The mill is designed to produce 3.5 million tons per year of steel upon its completion in 2019-2020.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.