Market Segment
May 12, 2020
CRU: When Should Idled Steel Capacity Be Restarted?
Written by CRU Americas
By CRU Senior Consultants Amir Sabet and Josefa Carrere, from CRU’s Steelmaking Raw Materials Monitor
The Covid-19 pandemic has generated significant uncertainty in the commodities market. For the steel sector, this has resulted in a fall in demand and steelmakers have responded by taking a wide range of capacity-related actions. In this Insight we show how CRU Consulting’s Real Options capabilities can be applied to the steel industry’s strategic options around closures of mills in this time of uncertainty. This tool makes it possible to evaluate a range of decisions and get visibility on the value and risk profile of the available options.
