Unfair Gaps🇺🇸 United States

Primary Metal Manufacturing Business Guide

16Documented Cases
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All 16 Documented Cases

Idle Equipment and Reduced Throughput Due to Suboptimal Gauge Control and Scheduling

$Millions annually (via lower throughput and higher stock levels)

Poor optimization of rolling schedules and gauge control causes bottlenecks, standstills, and idle rolling mills from inadequate sequence planning and failure to minimize downtime during roll changes or transitions. This leads to lost production capacity and queues in continuous casting to rolling workflows. In Steckel mills, imprecise temperature control during finishing passes amplifies capacity underutilization.

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Under‑graded and mixed scrap sold below achievable value

$20,000–$80,000 per year for a small melt shop; $0.5–$2M+ per year for large primary metal plants with high scrap flows (extrapolated from 15–30% and up to 300% value gaps on hundreds/thousands of tons of scrap per year).[3][4]

Scrap from mills and foundries is frequently mis‑sorted or sold as mixed/low grades, causing the producer to receive substantially below market value for the metal content. Industry guidance shows that failure to separate grades and alloys routinely leads to discounts of 15–30% on brass and up to 300% on stainless versus properly sorted/graded material, indicating systemic revenue leakage when internal scrap is not rigorously graded before sale or internal transfer pricing.[3][4]

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Higher energy and processing costs from poorly graded scrap in the charge

$50,000–$500,000 per year in incremental energy and processing costs for medium‑to‑large melt shops, depending on tonnage and scrap quality spread (estimated from industry statements that lower‑quality scrap needs more energy‑intensive processing and that grading gains can be “significant” at scale).[1][3]

Improperly graded scrap with higher contamination or unsuitable alloy mix requires more intensive melting, refining, and processing, raising energy use and operating costs in steel and aluminium production.[1][3] Industry analyses highlight that lower‑quality or mismatched scrap demands additional purification and handling, driving up furnace time, energy per ton, and auxiliary processing.[1]

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Excessive Downtime and Energy Waste from Poor Rolling Schedule Optimization

$Millions annually (via reduced throughput and energy costs)

Inefficient rolling schedules in primary metal manufacturing lead to misalignment between heating and rolling processes, causing material overheating or underheating, increased scrap rates, and idle equipment. This results in higher operational costs due to unnecessary energy consumption and prolonged production cycles. Manual scheduling exacerbates these issues by failing to optimize sequence lengths and hot charging opportunities.

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