The purchase costs of steel-making raw materials - coking coal, metallurgical coke, and iron ore - registered a continued sequential increase in November, while that of PCI coal and scrap steel 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 November, the weighted average purchase costs of coking coal climbed by 2.03% month on month to 1,921.73 yuan/t.

The weighted purchase costs of metallurgical coke reached at 2,270.28 yuan/t, edging up 0.25% from the preceding month.

The costs of domestically-produced iron ore and imported iron ore fines also increased by 2.17% and 4.26% respectively compared with the preceding month to 912.75 yuan/t and 934.58 yuan/t, separately.

The weighted purchase costs of PCI coal, however, fell 0.39% on the month to 1,247.22 yuan/t, and that of scrap steel fell 0.40% to 2,556.58 yuan/t.

During the first eleven months, the weighted average purchase costs of coking coal, PCI coal, metallurgical coke, domestic iron ore and scarp steel fell by 19.35%, 20.27%, 22.59%, 2.06% and 15.07% year on year, while that of imported iron ore ticked up 1.91% on the year, data showed.

(Writing by yan.sun  Editing by Emma Yang)
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