Here is production analysis of Eastern China 's steel mills during the week ending December 23, 2011. The prices below include 17% VAT unless otherwise specified.
Iron Ore
This week, steel mills pay CNY 1,220 per tonne for 65% iron concentrates (domestic ore); and CNY 1,040 per tonne for 63.5% Indian fines (wet basis), a drop of 10 yuan in the week.
1.6 tonnes iron concentrates is needed in producing 1 tonne pig iron, thus, the cost of one tonne pig iron should be CNY 1,952 per tonne for domestic ore or CNY 1,664 per tonne for imported ore.
Coke & Coal
This week, the purchase price of II grade metallurgical coke is CNY 1,970 per tonne; pulverized coal injection (PCI) is CNY 1,350 per tonne. Producing 1 tonne pig iron need 400 kg coke and 150 kg PCI, the corresponding cost is CNY 788.0 per tonne to buy coke and CNY 202.5 per tonne to buy PCI.
After a comprehensive weighing on cost from raw material purchase, sintering, pig iron making, management, steelmaking to casting, here the break-down of costs in rebar production is in the table below (17% VAT included).