SHANGHAI, Apr 11 (SMM) - According to SMM cost model, instant profits from rebar and HRC in east China were -3.07 yuan/mt and 165.33 yuan/mt respectively on April 7, a drop of 38.47 yuan/mt and 20.47 yuan/mt from March 31 respectively.
Falling iron ore, coke and steel scrap prices together brought down the overall production costs of steel mills. But the finished steel prices fell 70-100 yuan/mt and the profits of steel mills thus weakened. The steel prices are expected to rebound slightly this week while the raw material prices may fall further due to the policy regulation and loose supply. SMM expects that steel mills’ profits will increase slightly on a weekly basis.
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