SteelHome updates production analysis of East Chinese steel mills during the week of October 12th 2012 to October 19th 2012.

The prices below include 17% VAT unless otherwise specified.

Iron Ore
Steelmakers in East China purchased 65% domestic produced fines at the price of CNY 1,010 per tonne, unchanged; the purchase price for 63.5% Indian fines is CNY 1,005.4 per tonne, down by CNY 16.3. Based on a general presumption that one tonne pig iron needs 1.6 tonnes concentrates and 1.65 tonnes imported ore, using Chinese made ore and offshore ore would cost CNY 1,616 and CNY 1,658.9 to produce one tonne pig iron.

Coke & Coal
East Chinese steel mills' mainstream purchase prices for II grade metallurgical coke was CNY 1,400 per tonne, up by CNY 30 and that of pulverized coal injection remained at CNY 1,000 per tonne. If we presume 1 tonne pig iron needs 400 kilogram coke and 150 kilogram PCI, corresponding cost would be CNY 560.0 for II grade metallurgical coke and CNY 150.0 for PCI.

Source - www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)