Wednesday, November 03, 2010

Questions for steel industry planners

Steel is generally thought of as a capital intensive industry. Here are some questions then for your strategic planning department … [which should be working hard to maximise return on capital employed].

- Which type of zinc galvanising line is preferred nowadays, and why?

- What the main technological alternative to tandem mill cold rolling?

- What causes per-tonne plate mill costs to vary up to 5-fold?

- Why do heavy section and rail rolling mills vary by up to 2½ -fold in capital cost per tonne terms?

- Is there a significant capital cost difference between coal-fired and natural gas based DRI plants?

- What is the main determinant of capex costs per tonne in a hot or cold rolling mill?

- How can I reduce my capital costs in electric steelmaking?

- What is the main driver of capex cost per tonne in a seamless tube mill?

- Are capital costs different for commodity and high performance steels – and why?

- Is it common to have partners involved in financing mill construction – do you have any examples?

- For which main elements of a steel plant do capital investment costs generally not vary with steel volume?

Full answers available in MCI’s steel industry capex report, published October / November 2010.

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