IIMA urges consumers of ferrous metallics to move away from a simple comparison of material based on price alone to one which takes into account the relative value-in-use within the application. In co-operation with CIX LLC (whose major contribution is hereby recognised), IIMA has developed a mathematical model which determines the relative value-in-use of Ore-Based Metallics and scrap in the electric arc furnace steelmaking (EAF) process. This model is simple to use and is based on Excel and Virtual Basic. The model:
The VIU Model totals up all of the costs and benefits for each material and determines the equivalent cost of a ton of steel based on the price of each commodity and the various cost benefits/penalties associated with each scrap type. It can compare equivalent cost head-to-head or calculate the break-even price of one commodity against the other. As feedstock material costs and compositions are constantly changing, the model should be run at each decision point.
Note (April 2023): it appears that the model is not compatible with the IOS version of Excel, so the Microsoft version of Excel has to be used.
The instruction manual can be downloaded via the link immediately below.
Download Value-in-Use Model instruction manual
Note that the Model requires macros to be enabled in Excel. We draw your attention to the disclaimer in the Model. Please note that completing the form with autofill may result in an error.
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