Steel margins squeezed but no output cuts in sight

摘要

Chinese flat steel producers started to lose money in June as margins were squashed by high iron ore prices that were unable to be passed along to end customers in a weak steel market. On June 17, when the S&P Global Platts 62% Fe IODEX reached $108.20/mt CFR, average profit margins for domestic hotrolled coil and rebar were just $0.04/mt and $20.9/mt respectively, Platts analysis shows. Some large state-owned mills are understood to be already selling steel below cost, while privately-owned flat and long steel producers have fared slightly better with margins of Yuan 100-200/mt ($14-29/mt).