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      Iron and steel industry continues deterioration

      2012-07-31 12:16 chinadaily.com.cn     Web Editor: Li Jing comment

      Steel industry's operating conditions continue to deteriorate. The profitability of large and medium-sized steel enterprises included in the scope of China Iron and Steel Association's statistics once again slipped to negative growth in June, said an official from CISA, reported Economic Information Daily on Monday.

      According to the report, in June, the profit revenue of the firms was down to -118 million yuan (-$18.53 million), and the monthly profit margin decreased to -0.04 percent.

      The official also noted that, from January to June, the sales revenue of large and medium-sized steel enterprises was nearly 1.80 trillion yuan, down 3.34 percent year-on-year, profits saw a 95.81 percent decrease to 2.39 billion yuan, the percentage of loss-incurring enterprises expanded to 33.75 percent, and the sales margin was 0.13 percent for the industry.

      The total profits of the top ten iron and steel enterprises reached 10.66 billion yuan and the profit declined 65.53 percent compared to the same period last year, said the official.

      Decreasing steel prices coupled with high raw material prices have far exceeded steel firms' affordability. The continuous deterioration of the operating conditions has brought widespread losses in the industry, an official from an iron and steel enterprise in Hebei province told the reporter.

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