History of the Commercial Metals Company, USA

We have added a page on the history of CMC to our website knowledge base. See <a href="https://www.steelonthenet.com/kb/history-cmc.html">History of Commercial Metals Company</a>.<br>

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Transport cost estimation service - coal, iron ore, steel

We have just launched a new service for estimating commodity transport costs around the world [for scrap cargo, iron ore, coal, steel etc]. For further info, visit http://www.steelonthenet.com/freight.html

 

blogger@steelonthenet.com

Steel prices to reach $1000 per tonne

According to a MEPS report published today, steel prices are headed toward $1000 per tonne. This would bring steel prices back to their levels of July 2008, which was the last steel pricing peak before the crash.

Driven by higher steelmaking input costs [including coking coal, iron ore as well as steel scrap], the current expectation is for world steel prices to reach $1000 per metric tonne by Q3 2011.

 

To read the MEPS report, visit http://www.meps.co.uk/MepsNewsSteelPrices2011.htm

 

blogger@steelonthenet.com

 

Rebar cost model

We have posted another cost model on the website. This is a January 2011 model of conversion costs from billet to rebar, based on scrap and billet costs today. To better understand cost structure for producing reinforcing bar, click steel rebar cost model.

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Steel price history - free graphs

Our website http://www.steelonthenet.com now shows several steel price charts online. To see the recent prices for ferrous scrap, pig iron, billet, slab, hot rolled coil or rebar, just visit http://www.steelonthenet.com/pricing_history.php.

All charts are shown with the compliments of international steel industry consultants MCI.

blogger@steelonthenet.com

Steelmaking costs 2008

With all the talk of the impending 2008 iron ore price increase, industry observers might be forgiven for taking their eye off other steelmaking costs. But ferrous scrap prices also rocketed in January [see http://www.steelonthenet.com/commodity_prices.html], rising a massive $90/tonne to ~$385-$400 fob Rotterdam for HMS1. Just to add to the misery, natural gas prices also jumped 20% in January [http://www.steelonthenet.com/commodity_prices.html], to reach record levels ...

Anyone betting on a 2008 steel price fall ?

blogger@steelonthenet.com

2008 steelmaking costs rise steeply

As discussions centre on crude oil prices hitting $100 a barrel this week, steel portal www.steelonthenet.com has recalculated current steelmaking costs with the latest inputs prices for scrap, electricity, coal etc.

Even before the expected 2008 price increase for iron ore, steelmaking costs for a typical West European steelmaker have risen some 35-40% in the 12 months since January 2007. Electric arc furnace steelmaking currently costs approx $447 per tonne of liquid steel. BOF steelmaking currently costs $353 per tonne. The figures compare to costs of $321 and $262 respectively exactly one year ago.

The summary cost calculations behind the current figures are shown online at www.steelonthenet.com/steel_cost_eaf.html and www.steelonthenet.com/steel_cost_bof.html. Interestingly, the cost differential between BOF and electric steelmaking has swung towards integrated steelmaking, which is now $94/tonne cheaper [at liquid steel level] than scrap-based steelmaking.

It remains to be seen how this differential will be affected by the current round of negotiations about 2008 iron ore prices. The expected iron ore price rises seem very likely to push mid-2008 BOF steelmaking costs towards $400/tonne liquid steel, and EAF steelmaking towards $500/t meaning that these costs will more than 50% above end-2006 price levels.

It certainly seems like a good time to be selling scrap ...

blogger@steelonthenet.com