Can Steel Actually be profitable :wink:

[Guest]

you are probably thinking I am mad, I am but there is reason in my madness. The reason is that steel is actually severely under priced at the minute.

In wardrobes for example, each Q increase makes the seller an extra 60c.
In Wardrobes you need 5 steel for every wardrobe made
In wardrobes, Q4 steel gains you 1Q in wardrobes

So the math goes

60/(4X5)=3

So each extra q of steel is worth in theory 3c of profit for the wardrobe maker.

So if wardrobe makers actually paid a decent price for the steel, for example, 130+2.5Q the profit margins on steel would be far better.

Hope this might change someone's mind on steel pricing and the market itself.

[Guest]

Steel is a subsidized product in order for the smaller players to be able to afford it.
If you use market price for the raw ingredients it cost about 250 to make Steel.Using Market pricing on Wardrobe production with Steel at 250 (cost)
that would bring the cost of Q0 wardrobes to about 5100.00.......and at todays market that would lose you money.

okinc