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Shanghai index down 1.66%, led by steel, cement stocks
By Ye Zhen |
October 26, 2012, Friday
|
Online Edition
Online Edition
SHANGHAI stocks slumped in morning trading, dragged down by steel and cement producers after China's industry watchdog said the steel sector is facing the problem of excess output capacity.
The benchmark Shanghai Composite Index fell 1.66 percent, or 34.87 points, to 2,066.71 points. Turnover was 31.2 billion yuan (US$5 billion) by the noon break.
"The problem of excess capacity in steel, cement and plate glass industries is aggravated by insufficient demand due to the global economic downturn," said Zhu Hongren, a spokesman and chief engineer of the Ministry of Industry and Information Technology.
It is estimated that the capacity utilization rate is below 75 percent among steel makers and around 72 percent among cement producers, Zhu said.
Maanshan Iron & Steel Co lost 4.9 percent after reporting a huge loss of 3.1 billion yuan during the January-September period. Baoshan Iron and Steel Co, China's largest steel mill, shed 1.3 percent to 4.53 yuan. Inner Mongolia BaoTou Steel Union Co fell 3.2 percent to 5.52 yuan.
Anhui Conch Cement Co, the country's biggest cement producer, led declines among cement producers, falling 3 percent to 15.62 yuan, after reporting its net-profit dived 66.8 percent year on year in the third quarter. Zhejiang Jianfeng Group Co shrank 3 percent to 9.91 yuan. Gansu Qilianshan Cement Group Co shed 1.6 percent to 9.93 yuan.
Non-ferrous metals producers also fell. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co, China's biggest producer of rare earth materials, declined 6.7 percent to 29.02 yuan. Xiamen Tungsten Co slid 3.7 percent to 34.75 yuan. Rising Nonferrous Metals Share Co lost 5.5 percent to 40.48 yuan.
The benchmark Shanghai Composite Index fell 1.66 percent, or 34.87 points, to 2,066.71 points. Turnover was 31.2 billion yuan (US$5 billion) by the noon break.
"The problem of excess capacity in steel, cement and plate glass industries is aggravated by insufficient demand due to the global economic downturn," said Zhu Hongren, a spokesman and chief engineer of the Ministry of Industry and Information Technology.
It is estimated that the capacity utilization rate is below 75 percent among steel makers and around 72 percent among cement producers, Zhu said.
Maanshan Iron & Steel Co lost 4.9 percent after reporting a huge loss of 3.1 billion yuan during the January-September period. Baoshan Iron and Steel Co, China's largest steel mill, shed 1.3 percent to 4.53 yuan. Inner Mongolia BaoTou Steel Union Co fell 3.2 percent to 5.52 yuan.
Anhui Conch Cement Co, the country's biggest cement producer, led declines among cement producers, falling 3 percent to 15.62 yuan, after reporting its net-profit dived 66.8 percent year on year in the third quarter. Zhejiang Jianfeng Group Co shrank 3 percent to 9.91 yuan. Gansu Qilianshan Cement Group Co shed 1.6 percent to 9.93 yuan.
Non-ferrous metals producers also fell. Inner Mongolia Baotou Steel Rare-earth (Group) Hi-tech Co, China's biggest producer of rare earth materials, declined 6.7 percent to 29.02 yuan. Xiamen Tungsten Co slid 3.7 percent to 34.75 yuan. Rising Nonferrous Metals Share Co lost 5.5 percent to 40.48 yuan.
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