The purchase costs of steel-making raw materials -coking coal, PCI coal, metallurgical coke, and iron ore- registered a continued sequential increase in October, while that of scrap steel further dropped month on month, according to data released by the China Steel Development Research Institute.

These are the primary raw materials for steel production, with their consumption constituting over 70% of production costs for steel enterprises.

In October, the weighted average purchase costs of coking coal and PCI coal climbed by 8.35% and 9.71% month on month to 1,883.42 yuan/t and 1,252.09 yuan/t.

The weighted purchase costs of metallurgical coke reached at 2,264.64 yuan/t, rising 6.47% from the preceding month.

The costs of domestically-produced iron ore and imported iron ore fines also increased by 1.81% and 3.36% respectively compared with the preceding month to 893.39 yuan/t and 896.38 yuan/t, separately.

The weighted purchase costs of scrap steel, however, fell 1.44% month on month to 2,566.85 yuan/t.

During the first ten months, the weighted average purchase costs of coking coal, PCI coal, metallurgical coke, domestic iron ore, imported iron ore and scarp steel fell by 19.75%, 18.54%, 23.74%, 0.10%, 0.47% and 16.07% year on year, data showed.

(Writing by Harry Huo  Editing by Emma Yang)
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