[Ferro-Alloys.com]For the crazy increased price of iron ore now increase the cost production of steel industry of RMB500/tons, because of the iron ore futures market and spot market changed, this will leas the profit reduced of steel mills and last friday, we got the the profit of steel mills down compared the last period in the first half of year.
The steel industry kept total stable and the production increased and the price of iron ore imported up sharplyand the profit down. From the national statistics data showed that the volume production of crude steel was 492 million tons up 9.9% YoY，the volume of steel products was 587 milion tons up 11.4% YoY, the volume of pig iron was 404 million tons up 7.9% YoY.
The iron ore price increased sharply and till the end of June, the price of 62% dry fines CIF reached to USD110.79/ton, up 60% compared with the beginning of 2019, in the first half od year ,the steel products export and import declined and the total volume of export was 34.399 million tons down 2.6% YoY and the volume of import was 5.823 million tons down 12.7% YoY.
The total mian and important 92 steel mills with a profit 85.5 billion yuan and down 18.2% YoY by the China iron and steel association.