China Baowu Guangdong Shaoguan Steel Co.,Ltd (“Shaoguan Steel”) made great efforts in reducing production cost, via promoting “Strict Management and Control, Enhancing Efficiency, Adding Production, Securing Quality, Increasing Profit”, encouraging all the workers to reduce cost, establishing ‘all-cost-could-be-cut’ concept, and digging potentiality for continuous cost reduction.

In March, the mill totally reduced cost of 44.32 million RMB in metallics charge, refractory and auxiliary materials, energy consumption etc.

I Setting up working group for studying the cost reduction

By the analysis of competitors’ cost, Shaoguan Steel conducted the improvement in reducing metallics charge, enhancing slag usage, reducing spray in converter, lowering slag consumption, lowering steel-delivery temperature etc.

In March, the metallics consumption was reduced by 3 kg/t, contributing 11.9 million RMB of cost cuts compared to 2018.

II Reducing refining ratio

The reduction of refining ratio could on the one hand lower refractory cost, and on the other hand could lower electricity consumption.

In March, the mill reduced ladle production co-efficiency by lowering refining ratio. The cost was 3.4 yuan per ton steel produced lower than February, or 6.7 yuan per ton steel produced lower than March 2018. In the given period, refractory cost in steelmaking plant fell by 25 million RMB, with the reduction of 7.4 million RMB of energy cost.

III Lowering alloy cost in rebar production

Alloy cost is one of the important production costs in steelmaking process. The mill reduced 5.8 yuan per ton of alloy cost per lower 0.002 percent Nb. The hit ratio of alloy in March was over than 99 percent. The cost was analyzed via comparing market price and technical requirements.