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Steelmaking Costs - WSD's "Cyclone"
Cyclone #3 tracks integrated steelmaking costs on a monthly basis for the USA, Europe and China. This report analyzes the changing cost position of EAF and BOF steel producers at different times of the steel cycle (i.e., during "rollercoaster" periods of low and high steel scrap prices) and in different parts of the world through 10 reference steelmakers.
The Cyclone's Reference Steelmakers
USA- Integrated steel mill producing hot-rolled band:
- No purchased coke, 100% self-supplied (SS) iron ore.
- No purchased coke, 55% self-supplied (SS) iron ore.
- 30% purchased coke, 55% self-supplied iron ore.
- 100% purchased coke, 100% purchased domestic iron ore.
- Mini-sheet mill (EAF-based) producing hot-rolled band.
- Mini-mill (EAF-based) producing rebar.
- Integrated steel mill producing hot-rolled band:
- No purchased coke, 100% purchased international iron ore.
- 20% purchased coke, 100% purchased international iron ore.
- Mini-sheet mill (EAF-based) producing hot-rolled band.
- Mini-mill (EAF-based) producing rebar.
- Integrated steel mill producing hot-rolled band:
- Inland location, no purchased coke, 50% self-supplied iron ore.
- Inland location, 100% purchased domestic raw materials.
- Coastal location, 100% purchased international raw materials.
- Mini-sheet mill (EAF-based) producing hot-rolled band.
- Mini-mill producing rebar.
- Integrated mill using mini-BFs and smaller-sized BOFs to produce rebar.
Steelmakers' Operating Costs in September 2007
(dollars per tonne shipped)| Mill | Slab/Billet | HRB with Overhead Cost | Rebar with Overhead Cost |
|---|---|---|---|
| Integrated Mills | |||
| USA #1a, no purch coke, 100% SS ore | $351 | $456 | |
| USA #1b, no purch coke, 55% SS ore | 381 | 488 | |
| USA #1c, 30% purch coke, 55% SS ore | 401 | 508 | |
| USA #1d, 100% purch coke and ore | 451 | 561 | |
| Europe #4a, no purch coke, 100% int'l ore | 450 | 560 | |
| Europe #4b, 20% purch coke, 100% int'l ore | 457 | 568 | |
| China #7a, inland, no purch coke, 50% SS ore | 330 | 367 | |
| China #7b, inland, 100% purch domestic RM | 393 | 433 | |
| China #7c, coastal, 100% purch int'l RM | 385 | 424 | |
| Mini-Sheet Mills | |||
| USA #2, EAF-based | $443 | $514 | |
| Europe #5, EAF-based | 464 | 537 | |
| China #8,EAF-based | 377 | 406 | |
| Mini-Bar Mills | |||
| USA #3, EAF-based | $405 | $470 | |
| Europe #6, EAF-based | 411 | 504 | |
| China #9, EAF-based | 343 | 356 | |
| China #10, mini-BF/BOF-based | 364 | 380 |
The Cyclone report is the fifth leg of WSD's early warning system. The other "legs" are Global Steel Alert, Steel Thermometer, InsideTrack and Truth & Consequences.
Cyclone #3 is provided to WSD's subscribers as part of their regular annual service. The price of the report for non-subscribers is $2,500.
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