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Hot Rolled Coil Cost Model | Conversion Costs Example

Example Format


Typical hot strip mill conversion costs
Example Format: HRC Cost Model
Item $/unitFactorUnitUnit costFixedVariableTotal
Slabt 
Slab transportt 
Scrap creditt 
ManpowerMHPT
Natural GasGJ 
ElectricitykWh 
Work rolls 
Consumables 
Packaging 
Depreciationt
SG&A costs
Total HRC   


The table above shows the format of the cost model that estimates hot rolled coil conversion costs from carbon steel slab, on a traditional continuous hot strip mill [not a reversing mill]. The rolling mill product is assumed to be steel coil of standard width (typically ~1.8m wide) and of ~1–3 mm gauge.

This model is available for purchase from SteelOnTheNet. However, it should be understood that any further use of the model is likely to require

  • a knowledge of upstream and / or downstream cost structures
  • further adaptation for relevant slab costs, for labour and energy costs, scrap prices, for depreciation charges etc
  • adjustment for local operational circumstances.

For other examples of products and services on offer, please visit: www.steelonthenet.com/commerce/examples.