Hot-Rolled Cost and Profit Tracking on January 10

This week, iron ore and steel scrap prices weakened MoM, the sixth round of coke price cuts was implemented, and overall steel mill costs declined MoM. Regarding steel, steel prices showed varying degrees of decline this week, with HRC prices dropping more significantly than other categories. As a result, driven by raw material concessions, overall steel mill profits improved, while HRC profits decreased MoM. Looking ahead, pig iron shows an upward trend, and raw material support is strengthening. Considering the seasonal weakening of downstream demand, steel price fluctuations are expected to remain limited, and short-term steel mill profits are expected to narrow.