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[SMM Iron Mine Review] Raw material costs rise and Steel Mill profits shrink
May 13,2020 17:21CST
The content below was translated by Tencent automatically for reference.

This even iron shock strengthens, the port spot market partial merchant quotation increases 5-10 yuan / ton or so. Traders, today's shipping enthusiasm is higher, the mentality is better. The purchasing mood of steel mills is general, and some of them have been supplemented at the beginning of Zhou Dynasty. The transaction price of PB powder in Shandong area was 670-675 yuan / ton, and that of PB powder in Tangshan area was 680-685 yuan / ton, and the transaction price was 5-10 yuan / ton higher than that of yesterday. According to the SMM data model, the profit of the long process steel plant has narrowed in the near future, mainly due to the concentrated rise in the price of raw materials. Based on the calculation of 88 US gold mine, the profit of rebar in long process steel plant is maintained at about 300 yuan / ton, but the production enthusiasm of steel mill is still good, and the demand for iron ore is increasing steadily. Affected by shrinking profits, steel mills still favor varieties with high performance-to-price ratio, and the price gap between high and low goods in port spot remains narrowed, but considering that the stock of high goods in the mainstream is declining rapidly, the price difference between high and low products in the short term is narrowed or relatively limited. [SMM Steel]

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