CISA: Large and medium-sized steel enterprises merely maintain a profit of 3.5%

BEIJING (Asian Metal) 5 Aug 10 – According to statistics from China Iron & Steel Association, during the first half this year, large and medium-sized steel enterprises’ sales profit was 3.47%, which was below the average profit in industry branch and was still at the state of low efficiency.

Data from CISA showed that 77 steel enterprises’ sales income was 1.460392 trillion Yuan in first six months, increasing by 46.Asian Metal Copyright The total inventory of five major steel varieties in spot market was 10.Asian Metal Copyright06% compared with that of the same period last year.Asian Metal Copyright Some mills even suffered heavy capital losses and arranged to reduce output due to the decreasing steel price and the high production cost.Asian Metal Copyright The high production cost narrowed profits largely, and profit in following days this year is not optimistic.

The purchase cost of raw materials such as coking coal increased in a large range in first half of 2010. Furthermore, the average CNF price of imported iron ore was USD111.5/t and it increased by USD35.35/t compared with that in the same period of 2009, with a year-on-year increase of 46.Asian Metal Copyright The purchase cost of raw materials such as coking coal increased in a large range in first half of 2010.Asian Metal Copyright42%.Asian Metal Copyright6734 million tons.Asian Metal Copyright What should be noticed is that the cost of imported iron ore was as high as USD139.85/t in June, up by USD71.72/t, with a year-on-year markup of 105.Asian Metal Copyright The increasing steel inventory seriously affects the market operation in the second half of this year.Asian Metal Copyright27%.

The increasing steel inventory seriously affects the market operation in the second half of this year. The total stock of 78 major steel makers reached 10.Asian Metal Copyright16% compared with that the beginning of 2010.Asian Metal Copyright3011 million tons in late June, increasing by 2.Asian Metal Copyright43%, and it got to 3.Asian Metal Copyright9047 million tons compared with that early of 2010, with a markup of 39.Asian Metal Copyright The high production cost narrowed profits largely, and profit in following days this year is not optimistic.Asian Metal Copyright27%.Asian Metal Copyright Data from CISA showed that 77 steel enterprises’ sales income was 1.Asian Metal Copyright The stock of billet saw an increase of 744,800 tons, up by 25.Asian Metal Copyright What should be noticed is that the cost of imported iron ore was as high as USD139.Asian Metal Copyright43%, and it got to 3.Asian Metal Copyright35t compared with that in the same period of 2009, with a year-on-year increase of 46.Asian Metal Copyright6734 million tons.Asian Metal Copyright16% compared with that the beginning of 2010.Asian Metal Copyright The total inventory of five major steel varieties in spot market was 10.Asian Metal Copyright The increasing steel inventory seriously affects the market operation in the second half of this year.Asian Metal Copyright8 million tons in 22 cities of China, witnessing an increase of 2.Asian Metal Copyright8 million tons in 22 cities of China, witnessing an increase of 2.Asian Metal Copyright75 million tons and a markup of 34.Asian Metal Copyright .Asian Metal Copyright16% compared with that the beginning of 2010.

The oversupply situation was serious, and many steel enterprises’ profit slipped down sharply. Some mills even suffered heavy capital losses and arranged to reduce output due to the decreasing steel price and the high production cost.Asian Metal Copyright42%.Asian Metal Copyright According to CISA, 40% of steel enterprises’ output witnessed decrease because of the maintenance and other reasons.