SHANGHAI, Sep 1 (SMM) - In July 2022, the procurement costs of raw materials for benchmark steel mills generally dropped month-on-month. Among them, metallurgical coke, pellets and steel scrap prices dropped more significantly by more than 10% MoM.
From January to July 2022, the cumulative purchase cost of coking coal added 70.93% year-on-year; metallurgical coke rose 25.86% year-on-year; domestic iron concentrate fell 24.49% year-on-year; imported fines dropped 26.33% year-on-year; steel scrap climbed 4.46% year-on-year.
1. Coking coal
In July, the weighted average purchase cost of coking coal converted into dry basis of benchmarking steel mills was 2,414.66 yuan/mt, a month-on-month decrease of 130.76 yuan/mt or 5.14%. From January to July, the cumulative average purchase cost converted to dry basis was 2481.60 yuan/mt, an increase of 1029.76 yuan/mt or 70.93% year-on-year.
2. PCI coal
In July, the weighted average purchase cost of PCI coal converted into dry basis was 1,595.54 yuan/mt, a month-on-month decrease of 77.50 yuan/mt or 4.63%. From January to July, the cumulative average purchase cost converted to dry basis was 1,661.55 yuan/mt, an increase of 579.99 yuan/mt or 53.62% year-on-year.
3. Metallurgical coke
In July, the weighted average purchase cost of metallurgical coke converted into dry basis was 2,896.70 yuan/mt, a month-on-month decrease of 327.14 yuan/mt or 10.15%. From January to July, the cumulative average purchase cost converted to dry basis was 3,164.51 yuan/mt, an increase of 650.28 yuan/mt or 25.86% year-on-year.
4. Domestic iron ore concentrate
In July, the weighted average purchase cost of domestic iron ore concentrate (dry basis) was 797.00 yuan/mt, a month-on-month decrease of 87.27 yuan/mt or 9.87%. From January to July, the cumulative average purchase cost was 880.57 yuan/mt, a drop of 285.65 yuan/mt or 24.49% year-on-year.
5. Imported fines
In July, the weighted average purchase cost of imported fines was 881.43 yuan/mt, a month-on-month decrease of 49.65 yuan/mt or 5.33%. From January to July, the cumulative average purchase cost was 890.25 yuan/mt, a drop of 318.12 yuan/mt or 26.33% year-on-year.
6. Steel scrap
In July, the weighted average purchase cost of steel scrap was 2,834.83 yuan/mt, a month-on-month decrease of 472.98 yuan/mt or 14.30%. From January to July, the cumulative average purchase cost was 3,329.75 yuan/mt, up 142.10 yuan/mt or 4.46% year-on-year.
