Coal, Coke, Iron Ore and Steel Scrap Procurement Cost Reversed the Upward Trend in May

SHANGHAI, Jun 29 - The procurement cost of coke, iron ore and steel scrap reversed its upward trend and started to fall in May.

From January to May 2022, the cumulative purchase cost of coking coal rose 80.18% year-on-year; metallurgical coke up 31.46% year-on-year; domestic iron ore concentrate down 18.50% year-on-year; imported fines down 23.09% year-on-year; pig iron up 8.30% year-on-year; and steel scrap up 10.05% year-on-year.

1. Coking coal

The weighted average purchase cost of coking coal converted to dry basis across the benchmarked companies in May was 2,699.74 yuan per tonne, up 83.76 yuan per tonne, or 3.20% MoM. The cumulative average purchase cost converted to dry basis from January to May was 2,485.87 yuan per tonne, up 1,106.22 yuan per tonne, or 80.18%, year-on-year.

2、PCI coal

The weighted average purchase cost of PCI coal converted to dry basis in May was 1,693.75 yuan per tonne, down 65.72 yuan per tonne or 3.74% MoM. The cumulative average purchase cost converted to dry basis from January to May was 1,678.70 yuan per tonne, up 654.37 yuan per tonne or 63.88% YoY.

3、Metallurgical coke

The weighted average purchase cost of metallurgical coke converted to dry basis in May was 3,490.52 yuan per tonne, down 3.13 yuan per tonne or 0.09% MoM. The cumulative average purchase cost converted to dry basis from January to May was 3,209.07 yuan per tonne, up 767.90 yuan per tonne or 31.46% YoY.

4、Domestic iron ore concentrate

The weighted average purchase cost of domestic iron ore concentrate (dry basis) in May was 925.18 yuan per tonne, down 9.59 yuan per tonne or 1.03% MoM. The cumulative average purchase cost from January to May was 894.37 yuan per tonne, down 203.00 yuan per tonne or 18.50% YoY.

5、Imported fines

The weighted average purchase cost of imported fines in May was 947.29 yuan per tonne, down 1.87 yuan per tonne or 0.20% MoM. The cumulative average purchase cost from January to May was 885.19 yuan per tonne, down 265.79 yuan per tonne or 23.09% YoY.

6、Steel scrap

The weighted average purchase cost of steel scrap in May was 3,473.42 yuan per tonne, down 21.57 yuan per tonne, or 0.62% MoM. The cumulative average purchase cost from January to May was 3,399.03 yuan per tonne, up 310.43 yuan per tonne, or 10.05% YoY.