China main steel mills lose 10 billion for the first 5 monthes of 2015

Because of the iron and steel industry overcapacity, falling steel prices even months. Cisa in 9th five secondary on the standing council, long association of China steel, anshan iron and steel group chairman, party secretary guang-ning zhang, 1 to 5 months of this year, steel prices continue to hit new lows, nearly 16.5 billion national key steel enterprises the main losses, ZengKui 10.36 billion.

De-rong Chen, general manager of baosteel, said, “the rebar all fell to 1900 yuan/ton, suggests some inspections before, now the steel even 1 yuan/kg price than cabbage. Iron and steel enterprises have to have to rely on reform and innovation to realize the transformation and upgrading of the node.”

“The current steel market and leading baosteel but also for the day.” De-rong Chen, ahead of the meeting, he just received its steel head of SMS, “they told me that steel no. 3 blast furnace was shut down, and bayi iron and steel, in the southern part of the production capacity, recent also plans to stop.” Representatives from liuzhou iron &steel group co.are presented.the group in his speech also said the liuzhou iron &steel group co.are presented.the recently also has 2 blast furnace production, the steel mills production needs very big courage, loss is very big.”

According to cisa data, 1 to 5 months of this year, the national crude steel output of 340 million tons, fell 1.6% year on year, it is also a crude steel production fell for the first time in the past 20 years.

The speed of the steel mills cut production didn’t catch up with the steel prices decline. In the first half of this year, steel prices continue to hit a new low. Steel composite price index fell from 83.09 at the end of last year to the end of June 66.69, or 19.7%, more than last year’s losses. Influenced by steel prices fell, cisa is included in the statistics of the national large and medium-sized key mills total revenue of 1.3 trillion yuan, the first five months fell 16.9% year on year, after the break even total profit is 528 million yuan.

But the 101 main business focus on steel mills losses of 16.481 billion yuan, ZengKui 10.361 billion. Among them, the losses of enterprises 40 families, accounting for 39.6% of the member enterprise number, loss of enterprise production accounting for 35.99% of the member enterprise steel production; Loss of enterprise loss of 14.959 billion yuan, up 40.45% from a year earlier.

Downstream of the steel market demand is weak, let the steel companies export enthusiasm. But steel exports is also facing the huge pressure to trade friction. According to statistics, the first five months of this year, the net export amount to 39.61 million tons of crude steel, steel rose 36.68% year-on-year. But the export growth directly lead to trade friction on China’s steel products increased. In the first half of this year alone, trade remedy investigations against Chinese iron and steel products as many as eight.

China steel association long guang-ning zhang said in a statement, the second half of this year the situation of iron and steel industry will still be very serious. Iron and steel enterprises should take the initiative to adapt to China’s economic development of the new normal, positive for structural adjustment and transformation and upgrading. “Steel mills leadership don’t struggle too much on short-term difficult to gain and loss, to realize the structure adjustment will be accompanied by a painful process of exploration and struggle. Be active in not in my state, a great pick up a stick, to achieve the goal of enterprise transformation and upgrading.”

In fact, in order to achieve the disbursement transformation. Many steel companies are take various measures to promote the transformation and innovation of authors efficiency. Hebei iron and steel to strengthen capital controls, for example, to ensure that the total annual funding compression 10 billion yuan of above; Masteel group will intensify off, accounts receivable was reduced by 50%. In the aspect of development mode, anshan iron and steel making up wisdom mine, hebei iron and steel finished the venerable company for delivery. Shandong iron and steel this year in April 1 to the financial sector profit growth.