Steelmakers' Per-Tonne Losses Continue to Widen

Deep News
Sep 24



In the hot topics section, data centers, market centers, capital flows, and simulated trading clients are all tracking the latest developments. According to Mysteel's steel market analysis, finished steel product prices have shown a generally weaker trend this week, while billet prices at the raw material end have edged slightly higher. As a result, the price gap between finished products and billets has narrowed.

Due to this dynamic, the theoretical profit for profile steel mills using billet has continued to contract compared to last week. Currently, the spot profit for angle steel stands at approximately -102 yuan per tonne, reflecting a deepening loss of 10 yuan per tonne from the previous week. For long-process steel mills, finished product prices have remained broadly stable, but raw material costs have continued to rise and hover at high levels with frequent fluctuations. Consequently, the theoretical profit estimates for these mills are also showing a tightening trend. At present, the spot profit for H-beams is about -173 yuan per tonne, with losses increasing by 5 yuan per tonne from last week.

Overall, the theoretical profit for steel mills remains on a narrowing trajectory. The pattern of weak finished products against strong raw materials has placed cost pressures and loss burdens simultaneously on the production segment, leaving the overall operational environment under notable strain.

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