MetalBiz—Since Feb. this year, steel prices plunged after continuous slight increases in earlier period. The successive price rising has not led to real industrial recovery, instead, some large steel enterprises fell into difficulties of demand decline again. Analysts held domestic steel industry will remain in slump in Mar. before the international iron ore negotiation confirmed.
Short-term price recovery has not brought enterprises out of deficit
Last year, since the broke of the financial crisis, domestic steel industry prices plunged rapidly due to continuous demand decline. Profit losses intensified in most enterprises. However, prices of some products rebounded since Jan..
It is said that the situation of Jan. was much better than that of last Q4. In Jan., Shandong produced 3.91 million tons of iron, 3.54 million tons of crude steel and 4.16 million tons of steel products, down 7.95pc, 1.71pc and 7.61pc year-on-year respectively, and up 22pc, 20.6pc and 9.5pc month-on-month separately. The price of steel products continued to increase slightly on the basis of last Dec., while most prices have recovered to 3,800-4,200 Yuan per ton.
Although steel prices increased on month, they still plunged 15-30pc year-on-year. It is predicted that steel industry of Shandong province is still in profit losses. In Jan., Jigang lost 415 million Yuan profit, down 1.15pc month-on-month and 635 million Yuan from the same period last year, while Laigang lost 360 million Yuan profit, down 380 million Yuan month-on-month and 770 million Yuan year-on-year.
Domestic steel demand weakened since Feb., and prices showed downward trend again. There was hardly order from international market, while domestic orders fell drastically compared with Jan…
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