United States Steel fear rising iron ore

AISC experts believe that the U.S. production ofmany factors, including raw material prices, energy
steel, less than half of the main raw material is ironprices, supply and demand, certain types of steel and
ore. The reality is that 62% of U.S. steel products,other factors. If there is a shortage of automotive
raw materials are from recycled steel scrap (almoststeel sheet, which will raise the price of automobile
do not use iron ore). Adding 93% of scrap steel, thesteel sheet, but not necessarily affect the price of
use of renewable electric furnace production of steelsteel beams and steel columns.
products, the only scrap material prices may affect    The most important point is that the end user
the cost of steel beams. U.S. production of steel EAFto consider is the price of the steel market, rather
steel production is mainly recycled steel. Even withthan simply the cost of raw materials prices.
the use of iron ore, most are purchased fromTypically, only the cost of construction steel material
domestic products. So the United States, the price oftotal of 25% to 30%, while the remaining 70% to
scrap steel prices have a direct relationship, while the75% of the cost from the manufacturing and
price of steel is almost nothing to do with the priceinstallation. Even if raw material costs increased by
of iron ore20%, it will only lead to the total package cost of
    In addition, in the United States, certain typesthe steel increased 5%. So, for the current iron ore
of steel have a specific steel production. Such as theprices will affect the cost price of this steel, head of
production of automotive steel sheet steel, can notthe United States Steel Association made the
produce steel structure steel, steel productionfollowing reply: "steel companies can continue their
factories can not produce the steel shipbuildingprojects, and select the steel material is wise.
industry. The cost of steel is usually affected by