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Basic mill operations 4 Model mills 6 Specifications for model mills 6 Plant investment 11 Components of operating costs 16 Comparative plant cost relationships and economies 36 Interplant optimal operating levels 36 Varying operating levels within a plant 42

The product cost in a steel plant is determined the way it is done in any other manufacturing organization. The total cost of producing a product basically consists of two components (Fig 1) namely (i) fixed cost, and (ii) variable cost.

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