Profits of Steel Mills Fluctuated Widely in January amid Steady Increase in Iron Ore Prices

SHANGHAI, Mar 2 (SMM) - On the raw material side, although the prices of coke fell 100 yuan in January, the steady increase in iron ore prices still drove up the costs of HRC. The profits of steel mills were mainly affected by the HRC prices, and the fluctuation range was +/-90 yuan.

In the follow-up stage, the prices of coke is expected to drop to a certain extent while the prices of iron ore is expected to remain volatile amid the strong demand from steel mills. Even with the bullish outlook for the post-holiday market, the recovery speed in February may be slower than market expectations. As such, the prices of HRC may fluctuate widely, and the profits of steel mills will follow suit.