China Iron and Steel Industry Association Benchmarking and Potential tapping Office

In August 2015, the price of steel market fell slightly, the price of iron ore consolidated at a low level, and the price of coal and coke continued to decline, with a large decline. The procurement costs of raw materials and fuels for benchmark enterprises have decreased comprehensively compared to the previous month. From January to August, the cumulative average procurement cost of each product was lower than the same period last year. Coking coal, injection coal, and metallurgical coke decreased by 17.84%, 14.92%, and 20.24% respectively year-on-year; Domestic iron concentrate and imported iron ore decreased by 35.64% and 40.32% respectively year-on-year; Scrap steel decreased by 30.90% year-on-year.

The cost difference of coking coal reaches 47.25%

In August, the weighted average purchase cost of coking coal converted into dry basis for benchmark enterprises was 683.42 yuan/ton, a decrease of 10.30 yuan/ton month on month, or 1.48%. From January to August, the average procurement cost converted into dry basis was 750.39 yuan/ton, a year-on-year decrease of 162.89 yuan/ton, a decrease of 17.84%.

From January to August, the weighted average procurement cost converted to dry basis for the top five companies with the lowest cumulative average procurement cost of coking coal in the benchmark enterprise was 589.78 yuan/ton, which is 160.61 yuan/ton lower than the average procurement cost of the benchmark enterprise and 21.40% lower than the average procurement cost; The weighted average procurement cost of the five enterprises with the highest procurement cost is 868.44 yuan/ton, which is 118.05 yuan/ton higher than the average procurement cost of the benchmark enterprise and 15.73% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 278.66 yuan/ton, with a difference of 47.25% (41.36% from January to July).

The cost difference of coal injection reaches 82.73%

In August, the weighted average purchase cost of coal injection converted to dry basis was 560.13 yuan/ton, a decrease of 17.20 yuan/ton compared to the previous month, with a decrease of 2.98%. From January to August, the average procurement cost converted into dry basis was 633.70 yuan/ton, a year-on-year decrease of 111.16 yuan/ton, a decrease of 14.92%.

From January to August, the top five companies with the lowest cumulative average procurement cost for coal injection by benchmark enterprises converted into a weighted average procurement cost of 442.47 yuan/ton on a dry basis, which is 191.23 yuan/ton lower than the average procurement cost of benchmark enterprises and 30.18% lower than the average procurement cost; The weighted average procurement cost of the five enterprises with the highest procurement cost is 808.52 yuan/ton, which is 174.82 yuan/ton higher than the average procurement cost of the benchmark enterprise and 27.59% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 366.05 yuan/ton, with a difference of 82.73% (76.51% from January to July).

The cost difference of metallurgical coke reaches 45.21%

In August, the weighted average purchase cost of metallurgical coke converted to dry basis was 794.52 yuan/ton, a decrease of 30.19 yuan/ton compared to the previous month, with a decrease of 3.66%. From January to August, the average procurement cost converted to dry basis was 906.64 yuan/ton, a year-on-year decrease of 230.11 yuan/ton, a decrease of 20.24%.

From January to August, the weighted average procurement cost of the top five companies with the lowest cumulative average procurement cost for metallurgical coke in benchmark enterprises was 741.00 yuan/ton, which is 165.64 yuan/ton lower than the average procurement cost of benchmark enterprises and 18.27% lower than the average procurement cost; The weighted average procurement cost of the five enterprises with the highest procurement cost is 1076.01 yuan/ton, which is 169.37 yuan/ton higher than the average procurement cost of the benchmark enterprise and 18.68% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 335.01 yuan/ton, with a difference of 45.21% (January July: 44.65%).

The cost difference of domestic iron concentrate reaches 41.43%

In August, the weighted average procurement cost of domestic iron concentrate (dry basis) was 459.50 yuan/ton, a decrease of 18.33 yuan/ton month on month, or 3.84%. From January to August, the average procurement cost was 493.79 yuan/ton, a year-on-year decrease of 273.45 yuan/ton, a decrease of 35.64%.

From January to August, the cumulative average procurement cost of domestic iron concentrate converted into 62% grade by benchmark enterprises was 491.01 yuan/ton. The weighted average procurement cost of the top five enterprises with the lowest cost was 422.50 yuan/ton, which is 68.51 yuan/ton lower than the average procurement cost of benchmark enterprises and 13.95% lower than the average procurement cost; The weighted average procurement cost of the five enterprises with the highest procurement cost is 597.55 yuan/ton, which is 106.54 yuan/ton higher than the average procurement cost of the benchmark enterprise and 21.70% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 175.05 yuan/ton, with a difference of 41.43% (January July: 47.97%).

The cost difference of imported iron ore reaches 82.21%

In August, the weighted average procurement cost of imported fine ore was 438.10 yuan/ton, an increase of 2.53 yuan/ton month on month, or 0.58%. From January to August, the average procurement cost was 457.80 yuan/ton, a year-on-year decrease of 309.30 yuan/ton, a decrease of 40.32%.

From January to August, the cumulative average procurement cost of 62% grade imported fine ore by benchmark enterprises was 468.68 yuan/ton. The weighted average procurement cost of the top five enterprises with the lowest cost was 404.05 yuan/ton, which was 64.63 yuan/ton lower than the average procurement cost of benchmark enterprises and 13.79% lower than the average procurement cost; The five companies with the highest procurement costs have a weighted average procurement cost of 714.03 yuan/ton, which is 245.35 yuan/ton higher than the average procurement cost of benchmark companies and 52.35% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 309.98 yuan/ton, with a difference of 76.72% (77.21% from January to July).

From January to August, the total procurement amount of imported iron ore by benchmark enterprises was 281.55 million tons, which translates to a cumulative average procurement cost of 484.68 yuan/ton at a 62% grade. The average procurement cost of the top five enterprises with the lowest procurement cost is 406.93 yuan/ton, which is 77.75 yuan/ton lower than the average cost of benchmark enterprises and 16.04% lower than the average procurement cost; The five companies with the highest procurement costs have a weighted average procurement cost of 741.46 yuan/ton, which is 256.78 yuan/ton higher than the average procurement cost of benchmark companies and 52.98% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 334.54 yuan/ton, with a difference of 82.21% (77.31% from January to July).

The cost difference of scrap steel reaches 28.25%

In August, the weighted average procurement cost of scrap steel was 1143.43 yuan/ton, a month on month decrease of 8.95 yuan/ton, a decrease of 0.78%. From January to August, the average procurement cost was 1402.32 yuan/ton, a year-on-year decrease of 626.95 yuan/ton, a decrease of 30.90%.

From January to August, the weighted average procurement cost of the top five enterprises with the lowest cumulative average procurement cost of scrap steel for benchmark enterprises was 1232.42 yuan/ton, which is 169.90 yuan/ton lower than the average procurement cost of benchmark enterprises and 12.12% lower than the average procurement cost; The five companies with the highest procurement costs have a weighted average procurement cost of 1580.54 yuan/ton, which is 178.22 yuan/ton higher than the average procurement cost of benchmark companies and 12.71% higher than the average procurement cost. The average procurement cost difference between the highest and lowest five enterprises is 348.12 yuan/ton, with a difference of 28.25% (19.56% from January to July).

remarks:

Since its establishment, the China Iron and Steel Industry Association has been organizing "benchmarking and tapping potential" activities among its member enterprises. This activity adopts the principle of voluntary participation, and only long-term production enterprises with a certain scale among the member enterprises of the Steel Association can apply to participate. At present, there are 62 member enterprises participating in the "benchmarking and tapping potential" activity, and their steel production accounts for over 80% of the steel production of member enterprises, which has a certain representativeness and universality.

2. The procurement cost of raw materials and fuels involved in this article is the cost of arriving at the factory without taxes, that is, the storage cost, including domestic freight, loading and unloading fees, insurance fees, port storage fees, and deducting transit expenses. If the same variety has different qualities and grades, a weighted average method will be adopted based on the purchase volume.