However, the prices of many products are not completely determined by downstream products, so this relationship does not necessarily happen. For example, coke is much stronger than rebar and iron ore is much weaker than rebar. Although there is a certain correlation, it is not completely relevant. Moreover, the performance of this relationship is different in different periods. For example, about 20 13, rebar is obviously stronger than coke.
To sum up, I personally think that the current relationship is mainly due to environmental factors leading to insufficient production of coke and rebar and rising prices. However, due to real estate regulation, the demand for rebar is in a weak market, so its price is not as strong as that of coke; Because iron ore is imported, it is not directly affected by environmental protection, and its price is mainly due to the price increase of rebar and insufficient demand, so it is weak.
From this point of view, if there is a lot of money, coke and empty iron ore, it will be profitable. Of course, the price difference will further widen until it becomes unprofitable.