Chinese steel enterprises' profit space narrows in Q1
2011-04-18 09:06:28 【Print】
BEIJING (Asian Metal) 18 Apr 11 – As reported by National Development and Reform Commission (NDRC) on 14th April, China’s iron and steel output continued to increase and the price fluctuated, while steel enterprises’ profit space narrowed down further in the first quarter of the current year. The profit rate of key steel enterprises was only approximately 3%. Several steel enterprises ceased to import spot iron ore in order to reduce the cost seeing international prices of iron ore kept moving up.
According to the report, China’s daily crude steel output amounted to more than 1.92 million tons and set another new record on a year-on-year basis. In the first two months of this year, China’s daily crude steel outputs were 1.9313 million tons and 1.9395 million tons respectively.
Statistics from China Iron and Steel Association (CISA) showed that the daily output of crude steel was 1.9137 million tons, with which the monthly output was assumed to be 59.325 million tons.
In January-March, the total output of crude steel was 173.5 million tons with a year-on-year increase of 9.8% and the daily output was 1.9278 million tons. According to the total yield in the first quarter, the annual production volume of crude steel would reach 700 million tons.
However, the output increase aggravated the competition in Chinese domestic market. NDRC indicated that steel enterprises’ profit space was severely squeezed as the international price of iron ore continued to rise with that of spot Iron Ore Fine 63% hitting USD185/t when the price of coal ran at a comparatively high level.
According to the report, China’s daily crude steel output amounted to more than 1.92 million tons and set another new record on a year-on-year basis. In the first two months of this year, China’s daily crude steel outputs were 1.9313 million tons and 1.9395 million tons respectively.
Statistics from China Iron and Steel Association (CISA) showed that the daily output of crude steel was 1.9137 million tons, with which the monthly output was assumed to be 59.325 million tons.
In January-March, the total output of crude steel was 173.5 million tons with a year-on-year increase of 9.8% and the daily output was 1.9278 million tons. According to the total yield in the first quarter, the annual production volume of crude steel would reach 700 million tons.
However, the output increase aggravated the competition in Chinese domestic market. NDRC indicated that steel enterprises’ profit space was severely squeezed as the international price of iron ore continued to rise with that of spot Iron Ore Fine 63% hitting USD185/t when the price of coal ran at a comparatively high level.
