Year on year profit plunged 96%
 
Series of data released on July 17, 2012 confirmed a well-known things, as the engine of global industrial production in the second quarter GDP grew 7.6 percent, a new low in more than three years since.
 
This is bad news for the steel industry, China has been the main driving force of iron and steel the amount of growth since the 2008-2009 economy is shrinking dramatically, especially the huge demand for steel in the construction of railways, real estate development, so that some of the iron and steel enterprise unbridled expansion of production.
 
Zhu Hongren, chief engineer of the Ministry of Industry warned in early February, 2012 iron and steel industry will face a more severe test, weaker demand makes the supply and demand become more prominent, and the high prices of iron ore and other raw materials will continue to squeeze the profits of the steel industry.
 
With the slowdown of the domestic economy, domestic demand for iron and steel industry have fallen sharply, and the first quarter into the industry-wide losses of the year. The data show that only a quarter of the steel industry losses up to 1.034 billion yuan.
 
Despite the general slowdown of industrial activity, but China's steel output of the refinery is still near record highs. June crude steel output hit 2.007 million tons, for the record the second highest, second only to 2.019 million tons in April.
 
Released a profit warning in recent weeks, Chinese companies a series of instructions, ranging from telecommunications to aerospace, from retail to real estate, to the iron and steel enterprises in China, the industry generally feel the pain of business decline.
 
China Steel Industry Association president Zhu Jimin, recently disclosed that China's steel enterprises profit plunged 96 percent year on year in the first half of this year. The economic slowdown clearly has made the steel industry into a "disaster area".
 
The Association's official website quoted Zhu Jimin speech said that due to weak demand and raw material and fuel prices are high, the Member iron and steel enterprises in the first half of cumulative profit fell to 2.39 billion yuan.
 
Public information display, 80% of the listed steel producer warned that their performance will be less favorable than forecast. Zhu Jimin said: "the first half of this year, national implementation of strict regulation of real estate policy, as well as railways, highways and other infrastructure construction project investment is significant downturn in steel demand weak." Among them, the shipbuilding capacity fell 10.1 percent, at the same time the first half of car production grew by only 6.7 percent year on year, weakened demand for steel.



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