What Factors Affect the Price of Pig Iron?

The total cost of pig iron in the steel production process is called pig iron cost, and it accounts for the largest proportion of the cost in steel production.

Pig iron cost

The total cost of pig iron in the steel production process is called pig iron cost, and it accounts for the largest proportion of the cost in steel production. ^[1]

The cost structure of pig iron is mainly raw materials (pellet, iron

The main factors affecting the cost of pig iron are the cost of raw materials (iron ore, pellets, etc.), followed by the cost of fuel and power (coke, pulverized coal, etc.). After offsetting other costs including auxiliary materials and labor costs with the recovery of by-products, they only account for about 10% of the total cost.

Due to its large scale, standardized technology and regular prices, the steel industry has made the product market's coefficient of elasticity small, excluding the possibility of using product differences to compete.

Reducing the cost of pig iron can take measures in reducing raw fuel costs, improving sintering production, rationally spraying coal, improving blast furnace smelting technology, reasonable investment, and strengthening management.