The cost of key steelmaking ingredients including PCI coal, metallurgical coke, and iron ore dipped in February, while that of coking coal increased, according to data from the China Steel Development Research Institute.
Expenses on raw materials constituted over 70% of production costs for steel enterprises in China, said the agency, which directly decided their steel price competitiveness and profit margins.
In February, the weighted average purchase price of coking coal edged up 0.45% month on month to 2,063.23 yuan/t, on an air-dried basis. That for met coke declined to 2,330.35 yuan/t, down 3.20% from the preceding month.
The costs of domestic iron ore and imported iron ore fines also decreased 2.98% and 3.20%, respectively, compared with the preceding month, standing at 972.65 yuan/t and 980.04 yuan/t
The costs of pulverized coal injection (PCI) coal, used to boost steel output, fell 3.29% to 1,164.74 yuan/t. Scrap steel prices dipped 0.20% to 2,676.13 yuan/t.
Over January-February, coking coal, PCI coal, metallurgical coke and scrap steel costs declined between 4% and 10% compared to the same period last year, but domestic iron ore and imported fines rose 19.21% and 16.33% respectively.
(Writing by yan.sun Editing by Alex Guo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.