MONTHLY: China’s rebar mills pocket $48 profit in March
China’s domestic steel market has been on a steady and gradual revival path since mid and late March both in demand and prices, and as a result, over February 26-March 25, the 91 Chinese integrated steelmakers under Mysteel’s canvassing posted their margins in rebar growing Yuan 49/t on month, and that for hot-rolled coil up the most among the key finished products by Yuan 98/t on month to Yuan 202/t, and that for medium plate up Yuan 49/t over the month to Yuan 275/t.
Not only integrated mills, 10 major re-rollers under Mysteel’s regular survey also reported a higher profit by Yuan 50/t in rebar to Yuan 150/t over the period, according to Mysteel’s the study.
Usually in March, China’s steel market enters into the spring as most of the downstream industries such as construction are able to operate as per normal after the Chinese New Year holiday and the weather is warming up, and for this year, the national average benchmark price of the HRB 400 20mm dia rebar persisted at above the threshold of Yuan 4,000/t since March 1, and the monthly average was recorded at Yuan 4,054/t including 16% VAT for March, up 1.6% on month, according to Mysteel’s database.
In the same month, the daily sales volume of long steel - chiefly rebar, wire rod and bar-in-coil – achieved the year’s high of 192,837 tonnes/day among the 237 trading houses across the country on average.
On the other hand, Chinese steel mills’ production costs eased with the molten iron cost having nudged down Yuan 6/t on month to Yuan 2,254/t excluding the 16% VAT, and, the price of the key steelmaking raw materials such as the national average price of second-grade metallurgical coke declined Yuan 36/t on month to Yuan 2,007/t including 16% VAT on average for March.
The 62% Australian iron ore pricing index stayed flat at $86/dmt CFR Qingdao on average for March. According to Mysteel’s data.
Since April, Chinese steel mills have been experiencing the continuing improvement in demand and the daily long steel transaction, for example, hit a record high of 331,627 tonnes/day on April 8 ever since Mysteel started the survey on March 17 2015.
Written by Venus Wang, wangyi@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com
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