Steel & Materials Chain

The steel chain connects raw materials, reduction or scrap processing, steelmaking, casting and finished products. Different production routes consume different inputs and energy. A rebar quote cannot be substituted for billet or ore without specifications and conversion costs. Margins depend on input prices, yields, energy, capacity use, freight and realised sales, not only the finished-product quote. Housing and infrastructure demand can influence orders with delays. Sahmino’s materials board helps compare like-for-like quoted products; it does not calculate an individual producer’s profit from one price.

Worked example (hypothetical)

A producer realises 300 million rial per tonne. Inputs cost 210 million, conversion 40 million and freight 10 million, leaving 40 million before other expenses. A 10% input-cost rise reduces that amount to 19 million if the sale price stays unchanged.

Check your understanding

Which unit error can spoil a materials comparison? Mixing kilogram, tonne, length and piece quotations without the actual product specification.

Sources, reviewed 5 October 2026

• Raw Materials