Iron and steelmaking cost models year 2025.

Steelmaking Cost Models - Year 2025

Conversion costs by Process Step

Steel production cost models serve as invaluable tools for understanding and optimizing manufacturing operations in the steel industry. These models break down the complex steelmaking process into its fundamental cost components - from raw materials and energy inputs to labor and overhead costs - allowing producers to identify their key cost drivers and areas for potential cost improvement.

By using standardized, generic cost models as benchmarks, firms can evaluate their performance against industry averages, uncover efficiency gaps, and make data-driven decisions about potential profit improvement. Whether analyzing basic oxygen furnace (BOF) operations, electric arc furnace (EAF) production, or downstream processing like hot rolling and tube making, these cost models provide a structured framework for competitive analysis and strategic planning. While not representing exact costs for any specific plant, they offer a practical starting point for understanding relative cost positions and identifying opportunities for enhanced competitiveness in the global steel market.

We can offer site visitors the following ready-made cost models.

• BOF route liquid steel from iron ore and coke
• EAF route liquid steel from scrap / DRI
• Slab to hot rolled coil
• Billet to reinforcing bar (rebar)
• HRC to welded steel tube
• Large rounds to seamless tube.

Note that some steel cost models (e.g. for liquid steel) are available for free. Finished product cost models require a subscription. Our subscriptions start at $50 per quarter. For further information, see our subscription options page.

Our steel cost models are 'generic'. i.e. for a notional rather than specific steel plant. Models indicate how steel costs can be estimated through a simple cost benchmarking type approach. The predicted total cost shown is not meant to represent an actual cost for any real steel company. It is a estimated figure only. Users of the cost models are invited to adjust inputs such as raw material costs, energy costs, labour costs etc to suit their own particular conditions.

We can supply custom-built cost models for linked processes (e.g. EAF steelmaking with ladle furnace, continuous casting, and hot rolling of rebar) and / or for any defined set of processes anywhere in the world and at various levels of detail. Please contact us for further information. We can usually provide a no-obligation quotation to supply a cost model to the requisite specifications within ~24 hours.

Similarly, this 'cost benchmarking' approach can be adapted to provide regional or world cost curves for any steel process (or specified finished steel product). Contact us for further details.