As a dark horse in the commodities sector in 2016, coal is still galloping on the road of price increases. But in the same supply side reform in the field of steel, the price trend in front of coal insignificant.

According to the latest statistics show that as of October 14th, Shanxi Lvliang coking coal market tax price of 1075 yuan / ton, the beginning of August 610 yuan / ton price rose 465 yuan / ton, or up to more than 76%.

A large steel enterprises staff said that "coal is currently with the spot futures rose, spot prices have been up going down easily, is the monthly pricing, we now buy domestic coal between 1100-1200 yuan / ton". Based on winter demand for coal more prosperous, the staff said, "11 and December will certainly not be lower than this price, steel mills want to reduce coal prices in winter, almost impossible."."

Coal prices all the way up, is constantly compressed steel prices profitable space. The staff said, "long basic no profit, but also a loss of 100-150 yuan / ton, cold hot rolling can profit 100-300 yuan / ton."."

In addition, the west of the Shinkansen senior researcher Qiu Yuecheng said in an interview, "steel production enterprises gross profit per ton is only 11 yuan / ton. At present, the domestic construction of steel production enterprises have shifted to a comprehensive loss, plate production enterprises still have some profit margins."

Qiu Yuecheng analysis, "since August this year, steel and iron ore prices have fluctuated little, but the price of coal continued to rise sharply, steel mills profit margins narrowed rapidly.". Since August Xiben cost index rose 290 yuan / ton, the same period the steel index rose only 30 yuan / ton."

In fact, in the reality of high coal prices, steel enterprises have made market reaction. Earlier, a Jiangsu steel enterprises staff said, "coal continues to rise, we will cut production, loss of things will certainly not do."." But before the real cuts were made, the mills could only passively accept coal prices."

Another move for steel prices is to raise factory prices. In October 17th, Anshan Steel's cold rolled products introduced in November ordering policy, products were raised 200 yuan / ton, 300 yuan / ton. At the same time, Anshan Iron and steel introduced the November product price policy, some products up 50 yuan / ton to 200 yuan / ton range. (China business network)