The production cost structure of precision seamless steel pipe is more complicated because it requires more finishing processes than ordinary seamless steel pipe. Nansteel Manufacturing Co., Ltd carefully summarizes the main production cost components of precision seamless steel pipe:
Raw material cost
Billet cost: This is the most important cost component. Precision seamless steel pipes are usually reprocessed based on hot-rolled seamless steel pipes. Therefore, the quality and price of the billet directly affect the cost of the final product. The price of the billet is affected by the steel market, steel type (such as carbon steel, alloy steel, stainless steel) and billet specifications.
Alloy elements (if alloy steel is used): If alloy precision seamless steel pipes are produced, alloy elements such as chromium, nickel, and molybdenum need to be added. The price fluctuations of these elements will also affect the cost.
Equipment depreciation and maintenance costs
The production of precision seamless steel pipes requires high-precision cold drawing machines, cold rolling mills, finishing mills, heat treatment furnaces and other equipment, which require huge investments and high depreciation costs. The daily maintenance and upkeep of the equipment also requires certain costs.
Labor costs
The production of precision seamless steel pipes requires skilled operators and quality inspectors, and the labor costs are relatively high.
Energy costs
A large amount of energy is consumed in the production process, including electricity, natural gas, water, etc.
Environmental costs
As environmental protection requirements become increasingly stringent, companies need to invest in environmental management, such as waste gas treatment, wastewater treatment, solid waste treatment, etc.
Managing costs
The costs of business operations management, administrative management, financial management, etc. will also be included in the product costs.
Quality control costs
In order to ensure product quality, it is necessary to establish a complete quality management system and carry out strict quality control, which will also incur certain costs.
Production and processing costs
1. Hot rolling/cold rolling cost (tube billet manufacturing cost): If the tube billet is produced by yourself, the cost of hot rolling or cold rolling needs to be considered, including energy consumption of heating, rolling, cutting heads and tails, equipment depreciation, labor costs, etc.
2. Cold drawing/cold rolling/finishing rolling cost (finishing cost): This is a cost unique to the production process of precision seamless steel pipes.
3. Cold drawing: including drawing force, die loss, lubricant consumption, drawing passes, etc.
4. Cold rolling: including rolling force, roll wear, lubricant coolant consumption, rolling passes, intermediate annealing, etc.
5. Finish rolling: including the use and maintenance of precision rolling mills, loss of high-precision dies, strict process control, etc., the cost is usually higher than cold drawing and cold rolling.
6. Heat treatment cost: In order to eliminate the internal stress caused by cold working, heat treatment is usually required, such as annealing, normalizing, etc., which includes the energy consumption of the heating furnace, holding time, cooling method, etc.
7. Surface treatment cost: Depending on customer needs, surface treatments such as pickling, phosphating, polishing, and honing may be required, which will increase additional costs.
8. Inspection and testing costs: Precision seamless steel pipes require strict size, mechanical properties and surface quality inspections, including non-destructive testing (such as ultrasonic testing, eddy current testing) and destructive testing (such as tensile testing, hardness testing), which will incur testing costs.
9. Mold and tool costs: Cold drawing, cold rolling and finish rolling all require the use of various molds and tools. The manufacturing cost, maintenance cost and replacement cost of these molds and tools also need to be included in the production cost.
10. Lubrication and cooling costs: A large amount of lubricants and coolants are required during the cold processing process to reduce friction and lower temperatures, which will incur corresponding costs.
Read more: Characteristics and Applications of Precision Seamless Steel Pipes
Raw material cost
Billet cost: This is the most important cost component. Precision seamless steel pipes are usually reprocessed based on hot-rolled seamless steel pipes. Therefore, the quality and price of the billet directly affect the cost of the final product. The price of the billet is affected by the steel market, steel type (such as carbon steel, alloy steel, stainless steel) and billet specifications.
Alloy elements (if alloy steel is used): If alloy precision seamless steel pipes are produced, alloy elements such as chromium, nickel, and molybdenum need to be added. The price fluctuations of these elements will also affect the cost.
Equipment depreciation and maintenance costs
The production of precision seamless steel pipes requires high-precision cold drawing machines, cold rolling mills, finishing mills, heat treatment furnaces and other equipment, which require huge investments and high depreciation costs. The daily maintenance and upkeep of the equipment also requires certain costs.
Labor costs
The production of precision seamless steel pipes requires skilled operators and quality inspectors, and the labor costs are relatively high.
Energy costs
A large amount of energy is consumed in the production process, including electricity, natural gas, water, etc.
Environmental costs
As environmental protection requirements become increasingly stringent, companies need to invest in environmental management, such as waste gas treatment, wastewater treatment, solid waste treatment, etc.
Managing costs
The costs of business operations management, administrative management, financial management, etc. will also be included in the product costs.
Quality control costs
In order to ensure product quality, it is necessary to establish a complete quality management system and carry out strict quality control, which will also incur certain costs.
Production and processing costs
1. Hot rolling/cold rolling cost (tube billet manufacturing cost): If the tube billet is produced by yourself, the cost of hot rolling or cold rolling needs to be considered, including energy consumption of heating, rolling, cutting heads and tails, equipment depreciation, labor costs, etc.
2. Cold drawing/cold rolling/finishing rolling cost (finishing cost): This is a cost unique to the production process of precision seamless steel pipes.
3. Cold drawing: including drawing force, die loss, lubricant consumption, drawing passes, etc.
4. Cold rolling: including rolling force, roll wear, lubricant coolant consumption, rolling passes, intermediate annealing, etc.
5. Finish rolling: including the use and maintenance of precision rolling mills, loss of high-precision dies, strict process control, etc., the cost is usually higher than cold drawing and cold rolling.
6. Heat treatment cost: In order to eliminate the internal stress caused by cold working, heat treatment is usually required, such as annealing, normalizing, etc., which includes the energy consumption of the heating furnace, holding time, cooling method, etc.
7. Surface treatment cost: Depending on customer needs, surface treatments such as pickling, phosphating, polishing, and honing may be required, which will increase additional costs.
8. Inspection and testing costs: Precision seamless steel pipes require strict size, mechanical properties and surface quality inspections, including non-destructive testing (such as ultrasonic testing, eddy current testing) and destructive testing (such as tensile testing, hardness testing), which will incur testing costs.
9. Mold and tool costs: Cold drawing, cold rolling and finish rolling all require the use of various molds and tools. The manufacturing cost, maintenance cost and replacement cost of these molds and tools also need to be included in the production cost.
10. Lubrication and cooling costs: A large amount of lubricants and coolants are required during the cold processing process to reduce friction and lower temperatures, which will incur corresponding costs.
Read more: Characteristics and Applications of Precision Seamless Steel Pipes
