China Steel Industry Association (hereinafter referred to as "CISA"), today held a press conference disclosed Steel Association member companies in the first half of the accumulated profits of only 2.385 billion yuan, representing a substantial decrease of 54.549 billion yuan, a decrease of 95.81%.
 
"The Chinese steel industry to achieve a profit level has been very low and at a loss edge, if the net investment income, iron and steel industry is actually at a loss." China Steel Association said.
 
Association data show that in the first half of the enterprises suffered losses totaling 14.248 billion yuan, an area of more than one-third of loss-making enterprises. Sales profit rate of 3.06% in the same period last year, dropped significantly to 0.13%.
 
Since the steel prices fell sharply in the fourth quarter of last year, steel prices has been on the operational state of low volatility. After the Spring Festival this year, steel prices rebounded, but faster growth of the iron and steel production, the high inventory levels in late April and then was continued to decline.
 
As of July 6, the China Steel Association, domestic composite steel price index than the end of last year, down 5.92 points, a drop of 4.9%; a substantial decline of 19.31 points over the same period last year, a drop of 14.43%.
 
The production side, the first half of a total crude steel production of 357 million tons, an increase of 1.8%. Steel Association member companies of crude steel output fell 0.1%, non-member companies yield substantial growth of 12.9%.
 
However, the demand side, by the downstream industry slowdown impact of continued weakness in demand for steel. China Steel Association pointed out that China's apparent consumption of crude steel in the first half of the year on year almost no growth, so the increment of the social consumption of steel is to digest the inventory.
 
At the same time, in the first half, iron ore and other raw material and fuel prices are high, resulting in the cost of doing business can not be reduced. China Steel Association data show that in July, the average CIF price of imported iron ore Hurghada to $ 138.15 per ton. May rose, the current iron ore prices again remained at the end of last year's level.



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