Chinese iron and steel industry earned 85 billion Yuan in 2010
2011-01-07 09:17:06 【Print】
BEIJING (Asian Metal) 7 Jan 11 – The total profit of domestic iron and steel industry was estimated to be around 85 billion Yuan in 2010, while the profit of major works was only 77 billion tons if 8 billion Yuan from the investment income was deducted.
According to the report, due to the price increase of iron ore, the extra payment on imported iron ore was USD26.1 billion (175 billion Yuan), which was nearly two times of the profit of major works.
A source from China Iron and Steel Association （CISA）indicated that the sales profit rate of iron and steel enterprises was the lowest among the national industries. Data showed that the consumption of crude steel in China reached 630 million tons against the production volume of 685 million tons. The capacity utilization rate was 89%. However, the high rate of capacity utilization can not turn into a high profit rate. For the time being, the average profit rate for all the national industries was 6%, but that for iron and steel was only 3.5%.
The source supposed that there would be much more risks and pressures on iron and steel industry in 2011. From the view of macro-environment, the total foreign trade volume increased by 37.5% in 2010 while it was designed to decrease to 10% for the year of 2011. The social fixed investment amount grew by 23.5% in 2010 but was adjusted to be 18% in 2011. The demand for iron and steel products would be restrained by these macro-indicators. Especially for the export, the export volume of iron and steel products in 2010 was 27 million tons. Therefore, it would be very difficult to achieve the target in 2011, which means a huge pressure on domestic market.
According to the report, due to the price increase of iron ore, the extra payment on imported iron ore was USD26.1 billion (175 billion Yuan), which was nearly two times of the profit of major works.
A source from China Iron and Steel Association （CISA）indicated that the sales profit rate of iron and steel enterprises was the lowest among the national industries. Data showed that the consumption of crude steel in China reached 630 million tons against the production volume of 685 million tons. The capacity utilization rate was 89%. However, the high rate of capacity utilization can not turn into a high profit rate. For the time being, the average profit rate for all the national industries was 6%, but that for iron and steel was only 3.5%.
The source supposed that there would be much more risks and pressures on iron and steel industry in 2011. From the view of macro-environment, the total foreign trade volume increased by 37.5% in 2010 while it was designed to decrease to 10% for the year of 2011. The social fixed investment amount grew by 23.5% in 2010 but was adjusted to be 18% in 2011. The demand for iron and steel products would be restrained by these macro-indicators. Especially for the export, the export volume of iron and steel products in 2010 was 27 million tons. Therefore, it would be very difficult to achieve the target in 2011, which means a huge pressure on domestic market.
