But despite the output increase, steel makers may face a large pressure on their earnings, if they cannot pass on the huge rise in prices of iron ore and coking coal to their products.

Pass on here means to increase the prices of their products, right?

No, it means to transfer the price increase to their products.
LiJ, the opposite situaton is "absorb."

Let's say I pay $10 for my materials, and I work with them to create a product that I sell for $20. My gross profit is $10.

If the cost of my materials goes up to $12, I can either pass on that costs to my customers, and charge $22, keeping my gross profit at $10, or I can absorb that increase, and not change the price I charge my customers. In that case, my profit goes down to $8.

Right now, you are seeing a lot of airlines charging an extra fee for the higher cost of jet fuel - they are passing on their extra costs to the customers.
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Marius Hancutransfer
Got it!

Thanks, Marius.
 BarbaraPA's reply was promoted to an answer.
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Thank you so much, GG.

Now I think I can use 'pass on to' and 'absorb' correctly.

Got it!