Private steel enterprises in Hebei realize dramatic YOY increases in sales revenue and profit
2017-06-22 17:58:44 [Print]
According to Hebei Metallurgical Industry Association (HBMIA), from January to April, 2017, private steel enterprises in Hebei produced 47.6302 million tons of steel, up by 0.57% YOY; realized a total main-business revenue of RMB334.88 billion, up by 38.98% YOY; and realized a total profit of RMB13.173 billion, up by 49.47% YOY.
From January to April, 74 Hebei-based private steel enterprises on the HBMIA statistics-collecting list maintained production, except 10; and 60 operating enterprises reported profit-making and only 4 claimed losses. Their average sales profit margin was 3.93%, and the highest unit profit margin amounted to RMB643/t and the highest profits of those enterprises amounted to RMB1.539 billion.
According to HBMIA vice president Song Jijun, though crude steel output did not increase notably, private steel enterprises in Hebei realized dramatic YOY increases in their sales revenue and profit, which indicated that steel prices rose compared with those in the same period of 2016, a notable signal that private steel enterprises move on in a better direction. The number of shutdown enterprise remained unchanged for the past two or three years, indicating that some private enterprises will exit the steel market under backgrounds of tightening market competition, increasing pressure from government on eliminating surplus capacity and on environmental protection, breaking of capital chain and other unfavorable factors.
From January to April, 74 Hebei-based private steel enterprises on the HBMIA statistics-collecting list maintained production, except 10; and 60 operating enterprises reported profit-making and only 4 claimed losses. Their average sales profit margin was 3.93%, and the highest unit profit margin amounted to RMB643/t and the highest profits of those enterprises amounted to RMB1.539 billion.
According to HBMIA vice president Song Jijun, though crude steel output did not increase notably, private steel enterprises in Hebei realized dramatic YOY increases in their sales revenue and profit, which indicated that steel prices rose compared with those in the same period of 2016, a notable signal that private steel enterprises move on in a better direction. The number of shutdown enterprise remained unchanged for the past two or three years, indicating that some private enterprises will exit the steel market under backgrounds of tightening market competition, increasing pressure from government on eliminating surplus capacity and on environmental protection, breaking of capital chain and other unfavorable factors.
