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Metallurgical coal a key steel input cost

Metallurgical coal as a percentage of costs

Raw materials account for 67% of steel costs on average, making them a key consideration for steel producers.

Figure 11: FY17 sector cash costs per category, $mn

Energy Raw materials 10%

59%

Other 18%

Labour cost 13%

Source: Company data, Renaissance Capital estimates

Metallurgical coal costs accounts for 30% of raw material costs

We calculate that met coal accounts for 30% of costs for the steel producers we cover.

Figure 12: FY17 sector met coal contribution to raw material cash costs, $mn

Met coal 30%

Other costs 70%

Source: Company data, Renaissance Capital estimates

Renaissance Capital

3 December 2018

Steel

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