The production cost spread between Southeast Asia’s electric arc furnace and blast furnace billet is expected to widen for the third consecutive month in March, according to estimates from Platts, part of S&P Global Energy.

The spread between the average cost per metric ton of billet produced by EAF steelmakers and that of the BF-converter route is likely to widen to $81 in March from $64 in February, showed Platts estimates.

Estimates for March are based on February raw material prices for delivery one month forward, accounting for 10% scrap usage in the BF-converter route and 100% scrap usage in the EAF route.

The EAF calculation assumes a scrap yield of 89%. The per-metric-ton cost to produce billet via the BF-converter route is estimated at $437/mt for March, down $3/mt month over month, while EAF steelmakers are expected to see a cost of $518/ mt, up $14/mt over the same period.

Platts assessed the average seaborne pulverized coal injection price on a CFR China basis at $122.64/mt in February, down from an average of $123.17/mt in January.

The Platts-assessed average seaborne 62/60 met coke price on an FOB China basis was $220.50/mt in February, up from an average of $204.86/mt in January.

The February average price for Platts iron ore fell to $99.06/ dmt from $105.62/dmt in January.

Meanwhile, ferrous scrap HMS 1/2 80:20 grade prices on a CFR Taiwan basis rose $12.39/mt month over month to an average of $318.72/mt in February, while average HRS101 prices rose $13.07/ mt to $363.50/mt over the same period, Platts data showed.

Platts assessed 5SP 130 mm billet at $482/mt CFR Southeast Asia on March 11, up by $2/mt day over day, while Chinese export 3SP 150 mm spot billet was assessed unchanged day over day at $449/mt FOB China over the same period.