Another price rally made profits of steel mills keep move up last week

With rising prices of iron ore and steel scrap and another round of coke price cuts, steel production costs stabilized last week. Steel prices rebounded. Therefore, overall profits of steel mills hiked further last week. Looking ahead, iron ore prices will climb. Coke prices will temporarily stabilize after eight rounds of price cuts. There will be stockpiling before the May Day holidays. It is expected that raw material prices will be stronger than steel prices in the short run, leading to expectations of narrowing profits of steel mills in the next two weeks.