Dependence of steel industry profitability on plant loading.
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Steel industry EBITDA versus global capacity utilisation


Slide from OECD's 74th Steel Committee meeting in Paris 2013 illustrating the relationship between steel industry profitability and global capacity utilisation.

This is a 12 year time series, which illustrates very well how good plant loading translates into high profits and vice-versa. This is not surprising in a high fixed cost industry such as steel where break-even volumes are perhaps at ~60% or so of full capacity.

For original OECD slide presentation, see Anthony de Carvalho slide report.

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