Operating margin indicators at Chinese and Turkish steel mills continue falling with lower steel prices and higher material costs, according to S&P Global Platts. The company said it expects the global operating margins for its U.S. operations will fall from a year ago by about 1 percentage point in 2018 as costs rise due to rising raw materials costs. Chinese mill spreads moved below $300 per tonne for the first time since summer 2017. In Turkey, a strengthening of scrap prices and weakening of rebar figures created a new low for the country’s export rebar-import spread.
Operating margin indicators at Chinese and Turkish steel mills continue falling with lower steel prices and higher material costs, according to S&P Global Platts. Chinese iron ore import prices rose between August and September as raw material costs rose 6.4%, producing indicative margins above the figures for 2017 and 2016. Chinese mill spreads moved below $300 per tonne for the first time since summer 2017. In Turkey, a strengthening of scrap prices and weakening of rebar figures created a new low for the country’s export rebar-import spread.