STEEL ROLLING MILLS AND TMT BAR MAKERS
Running a Rolling Mill: Billet Cost, Yield and Dealer Credit
Billet prices jumped overnight, the reheating furnace has fuel for two days, and a dealer wants two truckloads on credit while his last invoice is still open. You must decide on all three before the evening shift begins.
Our side is billet buying and costing, yield and fuel tracking, dealer credit rules, despatch planning, and managing shift managers. We write the routine and coach managers. Metallurgy, quality standards and plant safety are for qualified engineers and the standards bodies.
Discuss your priorities ↗COMMON CHALLENGES
The pressures
we often see.
- 01The selling price is driven by the market while billet, power and fuel costs move daily, so the margin is known only after the month closes.
- 02Yield from billet to finished bar varies by shift and by section, and small losses add up to a lot of tonnes before anyone notices.
- 03Dealers buy on credit and some stretch payments when the market is soft, so the mill finances the dealer with money it needs for billets.
- 04Truck booking, loading and weighbridge records are handled by different people, and mismatches become disputes with dealers and transporters.
- 05Power cost and furnace fuel are the largest controllable costs, but consumption is reviewed monthly, long after a bad shift is over.
OUR FOCUS AREAS
Where the work
usually starts.
- 01Daily cost per tonne sheet that includes billet, fuel, power, labour, rolls, repairs and loading
- 02Yield per heat or per shift, tracked as billet in and finished bar out
- 03Power and fuel consumption per tonne by shift
- 04Dealer-wise credit limit, outstanding, overdue days and who may release a truck
- 05Truck bookings against weighbridge entries and gate passes
- 06Billet stock and supplier price comparison before each purchase
- 07Roll change and breakdown log by cause
- 08Daily price decision: who sets the selling price and on what inputs
START THIS WEEK
Things you can do
before you call anyone.
- For one week, record billet weight in and finished weight out for each shift. Compare the yields. The difference between your best and worst shift is the first thing to discuss with your shift managers.
- Hypothetical example: if a shift rolls 100 tonnes of billet and gets 96 tonnes of bar, the loss is 4 tonnes. At ₹45,000 a tonne, that is ₹1.8 lakh a shift, before power and labour.
- List each dealer with credit limit, outstanding and days overdue. Mark those above limit. Call the largest overdue dealer yourself this week and agree a payment date before the next truck loads.
A PRACTICAL ENGAGEMENT
Start with the priorities
that matter most.
We begin by understanding how your business runs today, find the gaps, and agree the scope in writing. Recommendations are shaped around your team, your resources and your goals.
- A daily cost and price sheet that the owner and sales head read before fixing the rate
- A shift report covering yield, fuel, power, downtime and tonnes despatched
- A dealer credit policy with limits, approvers and a stop-loading rule
- A truck and weighbridge reconciliation format signed each evening
Not the right fit when: Do not start here if the problem is a quality rejection on test, a furnace safety issue or a statutory notice. Engineers and authorities must be involved first.
Explore a business audit ↗LET’S MOVE YOUR BUSINESS FORWARD
