The steel industry is bogged down
 
Began in June of this wave fell bogged down into iron and steel industry, the vast majority of the steel plant into a loss. August 1, the Federation of Logistics and Purchasing of China Steel Logistics Professional Committee issued a steel industry PMI index for July was 44.5 percent last month, down 4.7 percentage points. July new orders index was 33.3 percent last month dropped sharply to 13 percent, the lowest point since December 2008, showing the market demand is still sluggish. July, the steel industry PMI new export orders index was 32.4%, a significant drop of 15.2 percentage points last month, there are downside risks to its lowest in nearly four years, indicates that the late steel exports. Inventory of finished goods index rose 9.9 percentage points. To 62.5%.
 
Steel prices in April fell the impact of iron and steel enterprises, the majority of steel products including rebar, there is still gross margin decline in July, steel products and more has been plunged into a loss situation, the current steel prices has been the breakdown of many the marginal cost of the steel mills. According to statistics, the rebar average cost of production of iron and steel enterprises in early August 3829 yuan / ton, the steel market, the average price of 3531 yuan / ton, the loss of 298 yuan / ton.
 
Overall, the iron and steel enterprises are facing a marked decline in demand, the cost is no guarantee that the pressure of the large backlog of inventory, iron and steel enterprises operating conditions are very bleak. According to the latest statistics of the China Steel Association, the large and medium-sized steel enterprises in the first half of total sales revenue of 1.79575 trillion yuan, down 3.34%; profits of 39.258 billion yuan, down 59.8 percent; profit of 2.385 billion yuan, significantly reduced year on year to 54.549 billion yuan, decline of 95.81%; losses of loss-making enterprises amounted to 14.248 billion yuan, the loss of 33.75%; sales margin was 0.13%, up sharply down by 2.93 percentage points. According to internal estimates of the China Steel Association, net of investment income, the main steel business in the first half of the actual loss of $ 1.3 billion. However, only loss in order to force the iron and steel enterprises cut adjustment, only to find a way out of the lower production industry.



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