In scrap-based steelmaking (EAF and induction furnace routes), raw material cost is the dominant component — typically 50–65% of the total delivered cost of finished steel. But the headline scrap price is only the starting point. The actual raw material cost per tonne of liquid steel depends on the yield — how much of the charged scrap converts to usable metal.
At 91% yield, you need 1.099 MT of scrap per MT of liquid steel. At 85% yield (turnings-heavy charge), you need 1.176 MT — 7% more scrap for the same output. This calculator captures that yield adjustment and builds a complete cost picture including electricity, ferro alloys, consumables, rolling conversion, and overheads.
Use the Scrap Yield Calculator to determine the weighted average yield for your specific charge mix, then import that figure here. Read our Steel Scrap Grades Guide or India's Steel Production Cost Breakdown for detailed context on cost drivers.
Production cost varies by region and input prices. The main cost components are: scrap (50–65% of total), electricity (7–12%), ferro alloys (3–5%), and conversion/overheads (15–25%). Use SteelMath's free Production Cost Calculator to model the cost with your specific input prices.
At 625 kWh/t (induction furnace standard), the electricity cost equals your local rate × 625. At $0.08/kWh, that's $50/t. At $0.12/kWh, it's $75/t. EAFs are more efficient at ~450 kWh/t. Electricity is the second-largest cost after scrap purchase in every scrap-based steelmaking operation.
Breakeven scrap price depends on your selling price and non-scrap costs. The formula is: Breakeven = (Selling Price − All Non-Scrap Costs) ÷ Rolling Yield Factor × Scrap Yield. Use the Production Cost Calculator with your specific costs and current selling price to calculate your exact breakeven.