BULK
Oil & Gas Casing & Tubing (OCTG)
Seamless steel tube production via piercer-reeler process, normalized/quench-and-temper heat treatment, API 5CT threading and connection assembly, NDT inspection, and logistics to US Gulf Coast · CN
Total Cost
$343 / MT
Capacity (tonnes/year)
400,000
Throughput %
85%
Working capital
$70.0M Mn
Capex
$400.0M Mn
Offsite
$40.0M Mn
Total investment
$510.0M Mn
Lines
9
Net raw material
$5.50
1.6%
Conversion
$338
98.4%
Total / MT
$343
$ per MT
Raw Material
$5.50 / MT
| Line | Consumption | Unit | Price (USD) | Cost / MT |
|---|---|---|---|---|
| Steel Hot Rolled Coil (API X65/X70 grade)Live | tonne | $0.50 | ||
| Threading compound and thread protector | kg | $5.00 |
Utility
$38.20 / MT
| Line | Consumption | Unit | Price (USD) | Cost / MT |
|---|---|---|---|---|
| Natural gas (heat treatment furnace) | GJ | $3.20 | ||
| Electricity (piercing, rolling, threading lines) | MWh | $35.00 |
Operating
$245 / MT
| Line | Price (USD) | Cost / MT |
|---|---|---|
| Threading and connection assembly (direct labour + tooling) | $65.00 | |
| Manufacturing conversion (piercing, elongating, sizing, straightening, scrap) | $180 |
Overhead
$32.00 / MT
| Line | Price (USD) | Cost / MT |
|---|---|---|
| Factory overhead (QA/QC, NDT, hydrotest, API certification, coating, mill finishing, plant admin) | $32.00 |
Depreciation
$12.50 / MT
| Line | Price (USD) | Cost / MT |
|---|---|---|
| Depreciation (mill equipment, buildings, threading machinery — 20-year linear) | $12.50 |
Financing
$10.00 / MT
| Line | Price (USD) | Cost / MT |
|---|---|---|
| Working capital and capex financing (10% WACC on avg capital base) | $10.00 |
Prices stored in USD; converted to your selected currency at the latest ECB rate. Inputs marked "Live" pull current observed prices from Claight commodity data.