Yael Pipano

Earnings Preview: Steel Dynamics

Definitely something to consider:

Raw material costs still low as percentage of steel price, says BHP Billiton

Despite iron-ore going up 382% in the last eight years, metallurgical coal 599% in the same period and manganese 486%, BHP Billiton finds finds that the steel mills are doing “pretty well”, thank you. Although raw material inputs for steelmaking have soared, they are still low as a percentage of the steel price, says BHP Billiton.
BHP Billiton reports that 1 600 t of iron-ore, 600 t of metallurgical coal and 7 t of manganese are required to make a ton of steel and finds that currently two-thirds of steel is made using the BF-BOF method and only a third via the EAF route, which is grist to the mill of miners.

from Mining Weekly By: Martin Creamer
Published on 11th July 2008
www.miningweekly.com/a...