WSD seeks to be innovative in our customized client engagements. This is a function of effort, method and extensive knowledge of the global market. Regarding method, we take both a bottom-up and top-down approach to answering questions. We also try to apply time-tested “industrial structure” economic principles to better understand what has happened and what will happen. Regarding knowledge, WSD principal partners and staff have more than 100 years of combined experience in analyzing the steel industry. A major aid is World Steel Dynamics’ vast database on international steel prices, costs, capacity, demand and finances, which permits the detailed analysis of historic relationships in an industry-specific context. We frequently work with an array of outside industry experts specializing in various steel industry disciplines.
Our Innovative Approach
Our Approach
WSD consulting engagements span the full breadth of the steel value chain. Representative projects include:
Market and Competitive Assessments We evaluate opportunities across commodity and specialty steel products — from scrap, semis and plate to flat-rolled sheet, long products and iron ore. These engagements typically encompass long-term demand forecasts, supply-side analysis, production cost benchmarking of leading players, buyer and seller identification, trade balances, and historical and forward-looking pricing trends.
Plant-Level Viability Analysis We conduct in-depth evaluations of individual plant sites within a given region, including regional and global demand forecasting, competitive strengths and weaknesses, process-by-process cost benchmarking, and probability-ranked assessments of extended idling or closure.
Financial Transaction Support WSD has supported numerous IPOs, private equity transactions and other capital markets activities with tailored data, analysis and industry context.
What Sets Us Apart
Every engagement benefits from WSD’s combination of method, depth and experience. We take both a bottom-up and top-down approach, applying time-tested principles of industrial structure economics to understand not just what has happened, but what is likely to happen next. Our principal partners and staff bring over 100 years of combined experience analyzing the steel industry, supported by WSD’s proprietary global database covering prices, costs, capacity, demand and company financials. We also draw on a network of outside specialists across steel industry disciplines, ensuring each project benefits from the most current and relevant expertise available.
Ready to explore how WSD can support your next project? Schedule a call with one of our analysts to discuss your research requirements.
Steel Pricing Stratagems
WSD offers advisory and consulting services at the steel buyer/seller interface. On a confidential and “hands-on” basis, WSD advises clients on the approaches that may prove useful to improving their steel buying and selling performance, while at the same time managing future price risk.
- Client’s buying performance benchmarking. Compare Client’s historical price performance versus general market prices and OEM best practice price benchmarks (e.g. automotive).
- Benchmark steel buying strategies. Review buying strategies in use today by Client. Provide strategy benchmarking versus best-in-class strategies that are appropriate for meeting Client’s business objectives.
- Alternative procurement strategies. Recommend where appropriate alternative contracting methodologies, additional performance metrics, and ways to improve the Client’s buy/sell price alignment/management of steel cost changes.
- Steel price hedging support. Provide periodic updates on steel futures developments, financial swap pricing and financial price hedging strategies to meet Client’s needs.
- Identifying supplier selection alternatives. Review Client’s current supplier alignment and performance. Make recommendations where appropriate for alternate supplier choices (inclusive of international sourcing opportunities).
- Scrap management and scrap sales optimization. Benchmark Client’s scrap sales performance and provide recommendations on best-selling practices.
- Monthly steel price forecasting. Provide price forecast for relevant steel products to Client (currently providing, on a monthly update basis, a 12-month price forecast for shredded scrap, cold roll, and hot-rolled band)
Schedule a call with one of our analysts to determine how WSD can assist in improving your performance.