CRU: How Much Money Does a Steel Mill Need to Make to Survive?

By CRU Research Manager Paul Butterworth

Profitability in the steel industry is highly volatile with the last few years particularly seeing a huge swing in profits. Some producers saw margins hit ten-year highs only to see them quickly fall away, with many becoming loss-making in recent months. As steelmakers navigate the ups and downs of the steel cycle, we investigate the minimum sustainable margin needed by a steelmaker and ask if there is an upper limit to profitability.