[1] Lu Biao, Chen Guang, Chen Demin, Yu Weiping, et al. Impact of material and energy flow variation-basediron/steel ratio on production cost [J]. Journal of Southeast University (English Edition), 2015, 31 (3): 375-379. [doi:10.3969/j.issn.1003-7985.2015.03.013]

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Impact of material and energy flow variation-basediron/steel ratio on production cost()

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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

31

Issue:

2015 3

Page:

375-379

Research Field:

Energy and Power Engineering

Publishing date:

2015-09-20

Info

Title:

Impact of material and energy flow variation-basediron/steel ratio on production cost

Author(s):

Lu Biao¹;  Chen Guang²;  Chen Demin²;  Yu Weiping¹;  Ding Yi³

¹School of Energy and Environment, Southeast University, Nanjing 210096, China
²School of Civil Engineering, Anhui University of Technology, Ma’anshan 243032, China
³Ma’anshan Iron & Steel Co. Ltd., Ma’anshan 243000, China

Keywords:

iron/steel ratio;  material flow;  energy flow;  model of production cost;  steel scrap threshold price

PACS:

TK-9

DOI:

10.3969/j.issn.1003-7985.2015.03.013

Abstract:

This paper establishes a model for the production cost of iron and steel enterprise. The variation rule of the production cost versus the iron/steel ratio for two cases, namely, fixed steel production and a fixed amount of molten iron, is analyzed, and the concept of a steel scrap threshold price is proposed. According to the analysis results, when the steel scrap unit price exceeds the steel scrap threshold price, an increase in the iron/steel ratio can reduce the production cost, and vice versa. When the gap between the steel scrap unit price and the steel scrap threshold price is relatively large, the impact of the iron/steel ratio on the production cost is more prominent. According to the calculation example, when steel production is fixed(284 358 t/month)and the steel scrap unit price is 263.2 yuan/t more than the steel scrap threshold price, an increase of 0.01 in the iron/steel ratio causes a monthly production cost reduction of approximately 750 000 yuan(2.63 yuan/t). When the amount of molten iron is fixed(270 425 t/month)and the steel scrap unit price is 140.7 yuan/t more than the threshold price, an increase of 0.01 in the iron/steel ratio causes a monthly production cost reduction of approximately 430 000 yuan(1.5 yuan/t). The results indicate that iron and steel enterprise should adjust the production strategy in time when the scrap price fluctuates, and then the production cost will be reduced.

References:

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Memo

Memo:

Biographies: Lu Biao(1979—), male, graduate; Yu Weiping(corresponding author), male, doctor, professor, wpyu@seu.edu.cn.
Foundation item: The National Key Technology R&D Program during the 12th Five-Year Plan Period(No.2012BAF10B05).
Citation: Lu Biao, Chen Guang, Chen Demin, et al. Impact of material and energy flow variation-based iron/steel ratio on production cost[J].Journal of Southeast University(English Edition), 2015, 31(3):375-379.[doi:10.3969/j.issn.1003-7985.2015.03.013]

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