Steel makers turn from red ink to black
Source: Xinhua |
May 31, 2010, Monday
|
Print Edition
Print Edition
NET profit at China's 77 large and medium-sized steel makers totaled 33.9 billion yuan (US$4.97 billion) in the first four months of this year, compared with a 4.1 billion yuan loss during the same period last year.
Luo Bingsheng, vice chairman of the China Iron and Steel Association, said over the weekend the overall profit margin for China's steel industry in the period was just 3.6 percent, lower than the average profit margin of the domestic industrial sector.
Steel output costs would rise from that of the first quarter given higher iron ore prices and depleted inventories, he told the seventh "Shanghai Derivative Market Forum" held by the Shanghai Futures Exchange.
The average CIF (cost, insurance and freight) price of iron ore in the period has risen 26.1 percent annually.
The domestic steel prices began to drop from mid-April. Prices of deformed steel bars slid 10 percent to 4,000 yuan per ton, Luo said.
Hit by lower sales prices and rising costs, the steel industry will suffer another round of losses. From January to April, the gross output of crude steel globally rose 31.8 percent annually, while apparent demand for steel this year grew only 10.7 percent, said the International Iron and Steel Institute.
Luo Bingsheng, vice chairman of the China Iron and Steel Association, said over the weekend the overall profit margin for China's steel industry in the period was just 3.6 percent, lower than the average profit margin of the domestic industrial sector.
Steel output costs would rise from that of the first quarter given higher iron ore prices and depleted inventories, he told the seventh "Shanghai Derivative Market Forum" held by the Shanghai Futures Exchange.
The average CIF (cost, insurance and freight) price of iron ore in the period has risen 26.1 percent annually.
The domestic steel prices began to drop from mid-April. Prices of deformed steel bars slid 10 percent to 4,000 yuan per ton, Luo said.
Hit by lower sales prices and rising costs, the steel industry will suffer another round of losses. From January to April, the gross output of crude steel globally rose 31.8 percent annually, while apparent demand for steel this year grew only 10.7 percent, said the International Iron and Steel Institute.
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