The production cost spread between Southeast Asia’s electric arc furnace and blast furnace billet is expected to narrow in August for the third consecutive month, 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 anticipated to narrow from $81 in July to $61 in August, according to Platts estimates.

Estimates for August are based on July 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 $468/mt for August, down $3/mt month over month, while EAF steelmakers are expected to see a cost of $529/mt, down $23/mt over the same period.

Platts assessed the average seaborne pulverized coal injection price on a CFR China basis at $157.50/mt in July, down from an average of $161.34/mt in June.

The Platts-assessed average seaborne 62/60 met coke price on an FOB China basis was $275.78/mt in July, up from an average of $268.95/mt in June.

The July average price for Platts iron ore declined to $98.00/ dmt from $100.20/dmt in June.

Ferrous scrap HMS 1/2 80:20 grade prices on a CFR Taiwan basis fell by $20.05/mt month over month to an average of $328.57/mt in July, while average HRS101 prices fell by $16.66/mt to $382.96/mt over the same period, Platts data showed..

Platts assessed 5SP 150 mm billet steady day over day at $473/mt CFR Southeast Asia Aug. 17, while Chinese export 3SP 150 mm billet was assessed unchanged day over day at $449/mt FOB China over the same period.