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Steel Supply Chain

Gupta Presentation for Supply Chain of Steel
by

Alina Chester

on 18 March 2014

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Transcript of Steel Supply Chain

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli
Raw Materials
Iron Ore
- 3 firms dominate the market:
- Rio Tinto (Brazil)
- BHP Billiton (both British-Australian)
- Xstrata (Swiss).

Coal
- produced in China, but also imported to China
- Indonesia is top exporter
- Will only last about 130 years

Limestone
- Found all over the world, but mostly exported by China and the US
- inexhaustible supply

Recycled Steel
- US (Everywhere)
- Basic Oxygen Furnace 20-35%
- Electric Arc Furnace 80%
Coil
Oxygen
Energy
Water
Production
* China has highest production and demand
- yet demand exceeds supply
- high demand causes iron prices to rise


* Crude Steel Producers
- #1 is ArcelorMittal (Luxembourg)
- Next 9 are in ASIA
Ethics in the Steel Industry
Main goal is Sutainability
Europe Steel Transportation
Iron Ore
Limestone
Warehousing/Distribution/Logistics/Sales Channels

Steel Production Facility
Luxembourg
Heating Process
American Steel Processing Co.
Steel Recycling Plant
Broward, FL
American Steel Processing Co.
Train carrying recylced steel
Tampa, FL
Scrap Steel Tug Boat en route to Europe
Customers
Recycling
Governmental Impact
Green Supply Chain
Electricity
Coal
Recyling Rates in North America 1986-2011
Steel industry consumes 3% of all energy used in the world

Cost of energy ~ 20% of total cost of making steel

--->> move production to cheaper energy locations
Production Process
ArcelorMittal Galati Strategic Spare Parts Warehouse
Galati, Romania
Ferrari Manufacturing Plant
Maranello, Italy
Loading Ferrari onto Jet

-Safe handling
-Loading
-Shipping
-Breaking bulk
-Storage
-Insurance
-Inspection
-Inland distribution
Logistic services
Two ways of steel water transportation
2 Impacts:

Import/Export
--> US/India

Pollution
--> Contrast France / China
All new steel contains recycled steel
65 million tons per year
North America's most recycled material
paper
aluminum
glass
plastic
Lowers Production cost
saves landfill space
75% Energy Reduction
20 million households
One ton of recycled steel conserves
2500 lbs of iron ore
1500 lbs of coal
120 lbs of limestone
27% reduction in energy intensity per ton of steel produced
33% reduction in CO2 emissions per ton of steel shipped since 1990.
Construction
- largest customer
Engineering
- 10% of world steel
- Special purpose machinery
- General purchase
- Domestic appliances
Aerospace
- $137 Billion of world manufacturing per year
Automotive
- 16% of European Steel Consumption
Full transcript