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Steel

Steel Tier 1 Metals
Production7.42 million t p.a.
Exports1.24 million t
Value per tonne✦463
Revenue✦3.44 bn
Value added✦2.08 bn
Surplus✦246 m
  • Per tonne:
  • Labour ✦18.7 (Sf 2.34)
  • Materials ✦157
  • Capital ✦218
  • Energy ✦25
  • Surplus ✦44.7

Whole chain per tonne: 0.572 labour hours, 550 kWh.

Formula

A.C. = w0LhSf Labour ✦18.7 Shadow wage w0 ✦16 an hour Γ— Lh 0.5 hours per tonne Γ— skill factor Sf 2.34 Sf for industry: training ✦45,000 against ✦45,000, queue 20 hours against 48 + Ξ£ qiPirΞ»i Materials ✦157 Coal: 750 kg Γ— $42/t Γ— r 1.5 Γ— border 1.49 Γ— Ξ» 1.00 = ✦70.2 Iron Ore: 1.6 t Γ— $55/t Γ— r 1.5 Γ— border 0.63 Γ— Ξ» 1.00 = ✦82.7 Limestone: 250 kg Γ— $7.5/t Γ— r 1.5 Γ— border 1.50 Γ— Ξ» 1.00 = ✦4.22 + (D + Mo)Ξ±e Capital ✦218 Depreciation and maintenance ✦150 per tonne Γ— financing 1.45 Γ— waste factor Ξ±e 1.00 Financing is interest at 6% on equipment's average value over a 15-year life. Ξ±e is 1.00 when maintenance hours and defects are on target. + Epe Energy ✦25 E 500 kWh per tonne Γ— pe ✦0.05 per kWh = ✦418

A.V. = rP*world Accounted value ✦463 per tonne World price $332 per tonne less freight and insurance 7.02% = P* $309 Γ— r 1.5 crowns per US dollar Export parity: the price at the Commonwealth border for a good it sells abroad. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦463

Revenue = A.V. Γ— Q Accounted revenue ✦3.44 bn p.a. Domestic: 6.18 million t Γ— ✦463 = ✦2.86 bn Exports: 1.24 million t Γ— ✦463 = ✦573 m = ✦3.44 bn

Surplus = (A.V. βˆ’ A.C.) Γ— Q βˆ’ levies Accounted surplus ✦246 m p.a. Revenue ✦3.44 bn βˆ’ cost ✦418 Γ— 7.42 million t = ✦332 m Export charges ✦85.9 m: 15% of export revenue (federal levy and permit fee) Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦246 m

Made here
Supplies or uses it
Inputs arriving
Output leaving

Made from per tonne

Used in p.a.