"A big rally in steelmaking raw materials including coking coal and coke this year has sharply increased Chinese steelmakers' production costs and eroded mills' margins, forcing a growing number of steelmakers to start booking losses.
"Only about half of Chinese steel mills are still profitable, and some are making a loss of 100 yuan ($15.00) a tonne," said Li Wenjing, an analyst with Industrial Futures in Shanghai.
"The shortage of coal and coke supply has led to a big spike in prices, and turned mills' performance to negative and thus caused them to curb production," Li added."
Coking Coal, Hmm, too much too fast? Prices to bite hands that feed them?
On that note, also dubious about IO now, but picked up GRR chart showing a flag consolidation, and breakout at 12c maybe on soon?
