Steelmaking Costs - WSD's "Cyclone"
Cyclone #4 tracks integrated steelmaking costs on a monthly basis for the USA, Europe, China and the Middle East. 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 23 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.
- 33% 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.
- Integrated steel mill producing hot-rolled band:
- Iran location, no purchased coke, 90% self-supplied iron ore.
- Turkey location, 100% purchased raw materials.
- Iran location mini-sheet mill (DRI fed EAF) producing hot-rolled band.
- Turkey location mini-mill (EAF-based) producing rebar.
- Turkey location billet re-roller producing rebar.
- Middle East mini-mill (DRI fed EAF) producing rebar.
- Middle East billet re-roller producing rebar.
Steelmakers' Operating Costs in September 2010
(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 | $462 | $580 | |
| USA #1b, no purch coke, 55% SS ore | 493 | 612 | |
| USA #1c, 30% purch coke, 55% SS ore | 508 | 628 | |
| USA #1d, 100% purch coke and ore | 518 | 639 | |
| Europe #4a, no purch coke, 100% int'l ore | 643 | 777 | |
| Europe #4b, 33% purch coke, 100% int'l ore | 650 | 784 | |
| China #7a, inland, no purch coke, 50% SS ore | 473 | 523 | |
| China #7b, inland, 100% purch domestic RM | 514 | 565 | |
| China #7c, coastal, 100% purch int'l RM | 503 | 555 | |
| Middle East #11a, Iran, no purch coke, 90% SS ore | 349 | 403 | |
| Middle East #11b, 100% purch RM | 573 | 665 | |
| Mini-Sheet Mills | |||
| USA #2, EAF-based | $469 | $578 | |
| Europe #5, EAF-based | 548 | 626 | |
| China #8,EAF-based | 460 | 499 | |
| Middle East #12, Iran, DRI fed EAF | 281 | 313 | |
| Mini-Bar Mills | |||
| USA #3, EAF-based | $472 | $527 | |
| Europe #6, EAF-based | 513 | 617 | |
| China #9, EAF-based | 417 | 440 | |
| China #10, mini-BF/BOF-based | 448 | 472 | |
| Middle East #13, Turkey, EAF-based | 547 | 615 | |
| Middle East #14, Turkey, billet re-roller | 580 | 648 | |
| Middle East #15, DRI fed EAF | 290 | 322 | |
| Middle East #16, billet re-roller | 580 | 616 |
The Cyclone report is the fifth leg of WSD's early warning system. The other "legs" are Global Steel Alert, Steel Scorecard, InsideTrack and Truth & Consequences.
Cyclone #4 is provided to WSD's subscribers as part of their regular annual service. The price of the report for non-subscribers is $4,000.
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