Why is steel so expensive?

[Guest]

Well I can tell you from experience (because I used to have 30+ factories and I produced steel) that steel is definately not cheap. Your estimate of 15c is way too low. In my good days when coal and iron was cheap on the market I would be able to get it to about 75c but on some bad times when the market was being rather mean to me, the cost was 140c to make. I usually bought all my materials which are: 2 kg Iron ore, 5 kg Coal, 0.5 kg Chemicals, 200 kWh Power.

I can even show you how the price would definately come up to 75c atleast (realm 1)

IO = 16c, Coal = 16c, Chemicals = 40c, power = .24c (i know its high)

Calculating with the listed prices of raw materials...
180c per unit

If anything, the steel producers are being ripped off and it is not often when all the prices of raw materials are low enough for it to be profitable. Steel is largely reliant on the market prices and the market usually turns a cold shoulder to steel producers. I believe that most large companies just buy steel from the NPC.

EDIT: Also, having a mine in your production chain is misleading. If you can get more profit for selling the coal/IO then why put it into making steel? As it is said on the forums here on Kapilands, pay each building what its worth. Calculate prices based on what they are on the market, not how much it costs for you to make it.

Also, I strongly urge anyone not to go into the steel industry because it is a VERY VERY painful business. I had to sell all my 30+ factories to buy plantations to make wood.