Conversion cost model for hot rolled coil [example format]. logo

Conversion Cost Model - Hot Rolled Coil.

Example format

Typical hot strip mill conversion costs
Item $/unitFactorUnitUnit costFixedVariableTotal
Slab t  
Slab transport t  
Scrap credit t  
Manpower MHPT
Natural Gas GJ  
Electricity KwH  
Work rolls  
Depreciation t
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 ~1-3mm gauge.

This model is available for purchase from 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.

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