Differentiation of black movements on Monday, coke continues to strengthen, steel mine is relatively weak. Industry expects steel prices in the third quarter from the second quarter of profits or fell.

Fundamentally, late downward pressure on steel demand is still great, but coal supply tight ends to related species formed a strong support. Differentiation between varieties is expected to continue, recommends that the steel mines wait-and-see, char maintaining too many ideas.

Soaring steel prices in the first half of the market, steel prices have been given in the report an upbeat third-quarter prospects. Classified according to Shen's 46 listed companies in iron and steel, section steel enterprises reported 1-9 month results notice 13 full, 2 expected losses.

Compared to last year three or four quarters of winter so far this year, steel prices rebound in profits overall repair. Steel shares, maanshan iron and steel shares, Anyang iron and steel min 1-9-month accumulated net profits expected out of the red light. Among them, steel expects net profit of 70 million to 100 million of shares, and three steel min expected profit of 409 million to 603 million, compared to a loss of 73 million and 650 million respectively over the same period last year.

Maanshan iron and steel shares on the announcement, said its first-half profit, and benefit from supply side reform, third-quarter operating environment of the industry has improved over the same period.

However, there are still 5 Mills before the expected third-quarter net profit likely fell. Due to the rising cost pressure, Ding Tai September before new material is expected to net interest margin fell 0% to 30%. It said in a statement, downward pressure during the reporting period, large fluctuations in raw material prices, prices affect the related product gross margin fell, costs have been rising.

"And compared to the same period last year, steel prices overall profitability has increased significantly in the third quarter, slightly down compared with the second quarter of this year. "An industry analyst said. "7 August – also is making money in September, probably in low profit levels. ”

Downstacking steel prices in the near future coking coal coke materials, transportation costs rose, is the profit margins of the main reasons for the erosion of steel. Last week, the West fell 80/tons of steel, costs rose 37 per ton in the same period. Coke of coking coal prices continue to rise, Shanxi coking coal group in coking coal after rising 50 to 90 per ton, this is the second price adjustment within one month. In addition, since September 21 implementation of over-limit transportation vehicle road regulations in some areas rising transport costs more than 30% per ton of steel.

"Now Mr wood's Mill on the breakeven point, wire thread has almost no profit margin, plates still have profits of about 200/ton. "Qiu Yue, senior analyst said. Current domestic steel production enterprise average gross margin at 37/ton. Full cost accounting, most of the steel production was transferred to the red ink.

Industry insiders said, about 1.6 tons is used in 1-ton steel smelting iron ore and 0.45 tons of Coke. Coke costs about 20% per cent of total costs, iron ore accounted for almost half.

August 24, steel futures headed downwards. Thread and coil main contract has fallen 10.8% and 6.5%, respectively, yesterday closed at 2316/ton and 2618/ton. However, bifocal contracts continued deduction of rising prices in the same period. Since late August, coke main contract rose 11% to 963/ton, Coke's main contract has always been maintained at near three-year high of around 1200/ton. Meanwhile, iron ore prices fell, but the decline was slightly smaller than the steel price declines, yesterday to close at 411.5/ton.