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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Monday, October 25, 2010

Iron and steel plant and equipment costs

MCI have just published a new report on typical iron and steel industry plant and equipment costs. The report covers average sizes [in tonnes of annual capacity] and $ costs for a range of plant. This includes sinter, coke, DRI, blast furnaces, BOF plants, EAFs, induction furnaces, slab casting, billet and bloom casting, heavy plate, hot rolled coil, cold rolled coil, hot dip galvanised sheet, tin plate, organic coated sheet, heavy sections, steel bar, wire rod, drawn wire, welded tube, seamless tube, pellets, washed coal, lime, PCI, air separation, power plant etc.

Want to know the cost today of a DRI plant? The chart below will tell you.
The full report has another 30 charts like this ...

dri capex costs

For further info, please visit http://www.steelonthenet.com/capex or call +44 775 149 0885.

blogger@steelonthenet.com

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