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 perspective. We frequently work with an array of outside industry experts specialized in various steel industry disciplines.
In performing these studies, detailed marketplace and product pricing crosschecks are a frequent requirement. These are facilitated by our extensive network of contacts the world over. We also place great emphasis on the relative cost position of the firm. The purpose is to better understand what conditions are necessary for the steel firm in question to have the “pricing power” to pass on its costs.
Consulting assignments have covered a broad range of subjects in the past. A few of the examples include:
- Assessments of market and competitive opportunities in a range of commodity and specialty steel products, such as steel scrap, slabs, plate, flat-rolled sheet, rebar, and iron ore. These typically include long-term demand forecasts, supply assessments, production cost analyses of the leading players, names and requirements of specific buyers and sellers, trade balances and historic and forecasted pricing trends.
- In-depth competitive evaluations and long-term viability analyses of individual plant sites in a specific region. These evaluations often include forecasting regional/global market demand, assessing the strategic strengths and weaknesses of competitors, process-by-process cost benchmarking, and developing a hierarchy of the mills as to the probability of an extended idling or closure.
- Due diligence reports including assessments of steelmakers’ competitiveness in a global context, evaluations of the relative equality of the product mix and product facilities and forecasts of domestic and global market and competitive developments to identify risks to the operations.
- WSD has supported numerous Initial Public Offerings (IPOs), private equity transactions and other financial sector requirements by providing data and other tailored information services related to the steel industry.
- Schedule a call with one of our analysts to discuss your research requirements.