GMT+8( BJT)

MONTHLY: China BF mills’ Apr rebar profit jumps $20/t

Rebar margin among China’s 91 blast-furnace mills under Mysteel’s monthly survey climbed up further by Yuan 139/tonne ($20/t) on month to Yuan 188/t on average for April mainly because of lower production costs with cheaper iron ore and coke.

China’s molten iron costs among these BF mills reduced further by Yuan 35/t or 1.6% on month to Yuan 2,195/t excluding 13% VAT on average for April, as Mysteel’s SEADEX for the 62% Fe Australian Fines fell $4.1/dmt on month to $83.7/dmt CFR Qingdao and the average price for metallurgical coke in North China dropped more substantially by Yuan 85/t on month to Yuan 1,662/t including 13% VAT, according to Mysteel’s survey.

“Chinese steelmakers has succeeded in bargaining with domestic coke suppliers for lower merchant coke prices, arguing that domestic steel prices had been declining in April,” explained a Shanghai-based industry source.

In April, China’s HRB 400 20mm dia rebar price averaged Yuan 3,615/t, Yuan 13/t lower than the average for March or the Yuan 4,199/t a year ago, all including the VAT, and the average rebar rolling cost, as a result, eased another Yuan 102/t on month to Yuan 3,277/t including 13% VAT among the 91 mills last month, Mysteel understood.

Other than the integrated mills, the 10 sample re-rollers under Mysteel’s monthly monitoring returned to profitmaking, earning an average of Yuan 70/t in rebar sales for April against the Yuan 135/t loss in March, as the average price of Tangshan Q235 150mm square billet price dropped Yuan 50/t on month to Yuan 3,090/t EXW and including 13% VAT, according to Mysteel’s database.

In contrast, the 91 steel mills under Mysteel’s survey were still making a Yuan 77/t loss in selling hot-rolled coil on average in April, though the loss was not as much as Yuan 173/t in March while the margin in medium plate has reversed to a positive Yuan 89/t on average from a negative Yuan 23/t for March.

Written by Venus Wang, wangyi@mysteel.com

Edited by Hongmei Li, li.hongmei@mysteel.com