Some sources estimate that China has over 400 Steel Mills. Therefore, a shift to reduce pollution has lowered output from some “bad actor” mills in China reducing overall supply while the global demand for steel is expected to increase in 2014. As basic economics suggests, increase demand with lowered supply means higher prices. The Platts outlook report on global iron ore stated that pellet premiums are expected to remain firm into the first half of 2014 as supply growth struggles to keep pace with an increase in global demand.
Steel Mills are very susceptible to global demands and pricing fluctuations. Stay tuned for a new Advanced Analytics solution by Predikto to help steel mills predict asset delays while also predicting production yields by batch. Plant Managers and Maintenance Managers are constantly striving to maximize yield, reduce asset failures, and improve overall efficiencies. We believe Predikto is unique positioned to help Steel Mills make significant improvements to their bottom line.