Posted by Yipi > 2017-09-24 22:49 | Report Abuse

The key saving is here. U never mention.

The blast furnace produce so call finished goods is call hot metal. Hot metal is in liquit form, and will send to EAF mix with scrap to further process to become billet. The key here from this process, AnnJoo can save graphite electrode consumption, at the same time minimize the power consumption and increase the output of billet.

Posted by bursainvest12 > 2017-09-24 23:42 | Report Abuse

Consume less electricity and natural gas

Apart from flexibility in feedstock, Ann Joo’s hybrid blast furnace-EAF consumes less electricity and requires lesser natural gas to operate. The hot metal from BF charged into EAH gives substantial savings in electricity consumption. BF gas is “recycled” or channelled to other plants as substitute for natural gas.

AnnJoo's cost leadership in steel industry
http://klse.i3investor.com/blogs/myinvesting/130952.jsp

Posted by bursainvest12 > 2017-09-24 23:43 | Report Abuse

Great article with good explanation. Thank you.

Posted by investoroem > 2017-09-25 12:07 | Report Abuse

Gross profit margin is not dependent on production process alone. Other factors such as raw material costs, financing costs,other fixed costs ...are equally important. The GP Margin quoted for SSteel of 4.8% is probably an anamoly, due probably to low volume of production, booking of raw material costs at high prices...