Reported 2012 Preview: expected 12 years the majority of companies reported a loss. The main reason is that downstream of the sharp drop in demand, steel prices fell significantly. 1-5 2012, the total profit of the domestic key steel enterprises only 1.31 billion yuan, down 96.2 percent, including a profit loss of 9.66 billion yuan through the steel. Since June, steel prices continued to weaken in the new lows after a record year, steel mill profitability fear is still not optimistic. We expect the third quarter, the steel industry chain in the second quarter earnings will be slightly weakened in the fourth quarter as demand growth, industry profitability will be improved.
The steel industry is mainly composed of both ends of the First, the upstream steel production enterprises, and because of the downstream steel trade enterprises, both of which are determined by the end of the consumer market, the main downstream, including real estate, automobiles, household appliances, and steel industry itself, the steel industry is light, but also reflects the decline of the entire economic boom.
As of July 9, 14 listed steel prices have been released the 2012 mid-year report notice, of which 12 steel enterprises, either Pre-losing either the performance dropped significantly. China Steel Industry Association data show that 1-May, large and medium-sized steel enterprises realized profits of only 2.533 billion yuan, down 94.26 percent; enterprises suffered losses totaling 11.749 billion yuan, the loss of 32.5%.
Yang Siming, chairman of the Nanjing Iron and Steel Group, one more big corporate losses. Some of the past effectiveness of well, now a month on the loss of several hundred million. The second loss for many years without a loss, and large private enterprises, is losing money.
This reporter has learned that serious excess capacity, continued weakness in demand, round steel prices into the winter fuse.
Recently released by the China Logistics and Purchasing Federation has just released the PMI index for the steel industry in June (into Windows) index of 49.2% in June, the chain picked up 0.4 percentage points. PMI shows that the positive factors of the domestic steel market is gradually increasing. But industry sources said the change is hard to say the Chinese steel industry will be out of the doldrums.
Xianyanghouyi domestic steel prices in the first half, continued to decline since mid-April, the beginning of the year about 6 percent decreased about 16% decline year-on-year view. Although the steel drop in price has little room, but the upward momentum is still expected to short-term from July to August, will continue to vulnerable downstream. The coming season is expected to have rebounded slightly in September, but the rebound height and length.
Insiders said that the factors restricting the industry-wide rebound is still outstanding, the first is due to domestic economic restructuring and macroeconomic regulation and control, steel demand is still declining. On the other hand, orders scarce, steel producers inventory record the second highest in the history of high inventories for the domestic steel mills once again forced to cut prices ex-factory price in July.
Recently, CISA vice president Zhang Changfu said, is expected to 1-6 in the steel industry will only keep the low-profit, but in view of the current decline in steel prices and raw material costs continued high there will not be too much improved. With the increase in trade friction, steel exports more prosperous situation or affected.
The only better data of the steel industry is steel exports. June steel exports 5.22 million tons, flat ring than 5.23 million tons in May, an increase of 21.68% in May year-on-year growth rate of 9.87%. However, insiders pointed out that the June export growth has improved, but expect the possibility of exports continued to-expected is not too large. Zhang Changfu also said that the iron and steel in trade frictions have intensified phenomenon, exports will be affected.
The only better data of the steel industry is steel exports. June steel exports 5.22 million tons, flat ring than 5.23 million tons in May, an increase of 21.68% in May year-on-year growth rate of 9.87%. However, insiders pointed out that the June export growth has improved, but expect the possibility of exports continued-than-expected.



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