Insight
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9 Pages

Will vertical integration in the steel industry reach new heights?


Will vertical integration in the steel industry reach new heights?

Report summary

Steel producers have pursued a greater level of vertical integration in recent years, as market volatility and raw materials prices rose between 2009 and 2011. Now, with margins in the steel industry suffering, the cost of increasing vertical integration through captive, wholly owned mining assets is too high for many cash strapped steel producers. However, we expect steel companies will continue to look for ways to secure raw materials longer term.

What's included?

This report includes 2 file(s)

  • Will vertical integration in the steel industry reach new heights? PDF - 708.14 KB 9 Pages, 4 Tables, 8 Figures
  • Will vertical integration in the steel industry reach new heights.xls XLS - 393.00 KB

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Why has vertical integration into mining assets increased in recent years?
  • The effect of vertical integration on cost competitiveness
  • The future for vertical integration
  • Appendix

In this report there are 12 tables or charts, including:

  • Why has vertical integration into mining assets increased in recent years?
    • Steel & Raw materials prices indexed - 2000 = 100
    • 2013 Steel Cost Service iron cost curve by company
  • The effect of vertical integration on cost competitiveness
    • Percentage self-sufficiency against cost of iron production - 2013
    • Percentage self-sufficiency against cost of iron production - 2015
    • Average delivered annual cost per tonne of iron ore vs 62% Fe fines FOB western Australia
    • Average delivered annual cost per tonne of iron ore vs benchmark 62% Fe fines FOB western Australia
    • Analysis of captive raw materials by company in 2013
    • Average delivered annual cost per tonne of coal vs US Low Vol HCC FOB
    • Average delivered annual cost per tonne of coal vs benchmark QLD Australia FOB HCC benchmark
  • The future for vertical integration
  • Appendix
    • Steel assets considered in this insight
    • Selection of captive mines wholly owned by steelmakers
    • Selection of mining equity shares of steel makers
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