Let me tell you something. If the 69-grade iron ore 170 USD (market price), the electricity cost is 0.96 yuan (industrial electricity), the coal cost 1.860 yuan per ton (long-term cooperative price), the cost is 4,900, and if the domestic 69-grade dry ore 1.260, the cost price is 4,680.

So now steel mills are starting to limit production, haven't you noticed?

The specific algorithm is as follows

((0.96*( 1.6* 1000+0.45* 1800)/0.9+0. 15*2450)/0.82+ 150)* 1 17%

1000 is the iron ore price. Note that this must be the price of high-grade iron ore with grade 69, not low-grade.

1800 is the price of coal.

2450 is the price of scrap iron. Generally, when smelting rebar, about 15% scrap iron will be added.

1 17% is value-added tax, steel products are not refunded, and 17% is value-added tax.

At present, the market price is 69 grade iron ore powder 1260, and the long association price is 1 140.

Coal 1860 yuan

Scrap iron hasn't changed, it's still 2450 yuan, 2600 yuan in some areas and 2900 yuan in some places. 150 is the cost of labor plus equipment depreciation and so on.

Steel falling below the cost price 10% is generally a signal that the financial system has bottomed out. At present, there is no need to worry too much. In fact, the market price and ex-factory price are upside down in 900 yuan.