SHANGHAI, Oct 26 (SMM) – China has promoted the return of coal prices to a reasonable range. The National Energy Group meeting required that the closing price of 5,500 kcal coal at ports should not exceed 1,800 yuan/mt.

According to data, the average daily crude steel output of steel companies in early October was 2.4406 million mt, an increase of 94,000 mt or 4.02% from the previous month. The output of pig iron was 1,873,200 mt, an increase of 104,000 mt or 5.9% from the previous month.

Iron ore, coking coal and coke are the main production costs of steel billets. At present, iron ore has fallen from a high level, while the prices of coking coal and coke remain high.

As the prices of coking coal and coke return to a reasonable level and the cost of steel billet gradually peaks, steel profits continued to expand. The profits are likely to return to the highest level in the second quarter.

The gross profit per mt of rebar at mills using blast furnaces is 701 yuan/mt, and the gross profit per mt of rebar using EAFs is 550 yuan/mt.