Demand for used Steel Plant remains bouyant – but correct pricing critical

There is a continuing demand for used steel processing equipment but buyers are being more selective, reports Charles Moses, Managing Director of Steel Equipment Valuers CJM Asset Management.

‘After several years of poor demand, 2016 saw an upturn in enquiries for used equipment as rising steel prices saw producers seeking to increase production. Whilst this demand has carried through to 2017, potential buyers are becoming more selective, looking for good quality modern equipment at competitive prices.

One of the unfortunate side effects of the increase in confidence last year is that potential sellers immediately assumed their used equipment had leapt up in value – an assumption which was fuelled by equipment brokers anxious to tell sellers what they wanted to hear in order to win the instruction.

As a result, there are a number of otherwise attractive process lines and mills which will not sell because the asking price is far higher than the market will bear.

Charles continues ‘Sellers sometimes forget the huge costs involved in moving a steel mill or similar – dismantling, shipping, rebuilding, civil works, recommissioning and modernisation are all major costs which in most cases will significantly exceed the actual sales value of the assets’.

However, deals are still by achieved and CJM have been involved in a number of major disposals including the sale of a 300,000 tonnes per year plate mill to an Iranian Steel Company on behalf of a Vietnamese client, the sale of a 700,000 tpy Wire Rod Mill in Austria, the disposal of the remaining Stainless Steel Rolling Mills from the Outokumpu Plant at Langshyttan, Sweden and a number of other disposals for clients in Germany, Holland, Turkey, Sweden and Italy.

CJM Asset Management continues to develop its footprint in the primary metals sector and recently won projects include a Blanking Line and Bar Conditioning Line in Spain, a range of Coil Grinding & Polishing Equipment in Germany and a nearly new 500,000 tonnes per year Plate Mill for the Vietnam Shipbuilding Corporation. 

For Further Information, contact Charles Moses F.R.I.C.S. T: +44 (0)7831 854971 E: