Steel Scrap Substitute Cost Curve

The Cost Curve for steel scrap substitute (SSS) plants is an analysis of the production cost of 48 existing and 43 planned SSS plants in the world. The SSS products and/or processes that we assess include DRI and HBI production via Midrex, HYL, Corex, Inmetco, Fastmet, Finmet, iron carbide and various coal-based processes.

The input data for each SSS facility include the iron ore cost, energy cost, labor cost, royalties, other costs such as refractories, supplies and maintenance and repair, depreciation expense, interest expense and cost adjustments for degree of metallization, product usability factor (which impacts steelmaking costs) and energy credit, etc. Various cost curves are derived and charted, including: operating cost; pretax cost; cost delivered to the U.S. Gulf Coast; and cost delivered to a Chinese port.

The SSS Cost Curve is offered on an annual basis ñ $3,000 to World Steel Dynamics' subscribers and $5,000 to others. It has been developed in partnership with Donald F. Barnett, steel consultant.