Saturday, April 26, 2014

Transport cost advantages - steel production in Africa

Our consultants have just been looking at the economics of iron and steelmaking in Africa. This is an interesting topic because of the various raw material export bans and import tariffs that often come into play.

However, we have also been looking at competitors’ steel transport costs from countries such as Japan, South Korea and India, to ship steel in to East Africa. Currently, this transport cost is around $75/tonne or more, a factor which really transforms the profitability of steel production in Africa.

For further information about the cost competitiveness of steel production in Africa, contact our steel industry economists.

Andrzej M Kotas, MBA
Managing Director
Metals Consulting International Limited

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