Question: Does this answer the question - how were mini-mills able to take over high-end, high-margin steel production? Initially, mini-mills could only produce low-quality rebar, which
Does this answer the question - how were mini-mills able to take over high-end, high-margin steel production? Initially, mini-mills could only produce low-quality rebar, which didn't require strict metallurgical specifications. This limited them to the low end of the market, which was unattractive to the large integrated steel producers. However, mini-mills operated with lower fixed costs, used scrap metal instead of raw ore, and employed electric arc furnacesa more flexible and cost-efficient technology compared to the massive blast furnaces used by integrated mills. As demand for rebar grew and mini-mills gained experience, they invested in better technology and process controls, gradually improving the quality of their output. With each improvement, they began to enter more technically demanding market segments, such as angle iron, structural beams, and eventually sheet steelproducts that required tighter tolerances and more consistent quality. Over time, they also adopted continuous casting technology and advanced metallurgical techniques, narrowing the performance gap between themselves and integrated mills. Because they could produce increasingly high-quality steel at lower costs, mini-mills became competitive in high-margin markets, which had previously been the domain of the incumbents. The integrated mills, burdened by large, inflexible operations and high overhead, found it difficult to respond quickly. By the time they recognized the threat, mini-mills had al
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