Increased loss of iron and steel industry

By Zou cheaponsale

Since the China Iron and Steel Association was announced that, in spite of the descent in hard metal goods produced charges many, but because of market demand and surviving goods produced scope for exceeds demand, the wares of poor sales and small costs and other justifications, effecting in goods produced forfeit, one quarter of the in the household large and medium-sized hard metal forfeit of 3.308 billion yuan.

China Steel Association, executive vice president Luo Bingsheng said that the total steel production is too high the first quarter of the root causes of business losses. The first quarter increased as a result of the formation of the procurement market, and led to the release of production capacity, exports of steel products during the same period fell by 50%, and all turn to the domestic market, leading to oversupply of the domestic market; The price is still the lowest since the end of last year spaces, and lower than the level in 1994.

However, hard metal costs and yield over the matching interval last year, up 47.16 billion yuan weighed against to a forfeit of margin is not many, but a forfeit of only 20, accounting for 72 large and medium-sized enterprises for 34% of the steel and steel. Luo Bingsheng examination This is because the cost of goods produced over the matching interval have highly lessened the cost of hard metal plunged 350 yuan / ton. In augmentation to coking coal costs by 12%, the in the household ore costs plunged 44 out of 100, while deals plunged 26 out of 100 ore. As for the charge of coking coal costs, Luo Bingsheng adjudicator will be corrected downwards.

Although the loss rate is not great, but the data show that the loss of a trend: The first two months loss of 1.511 billion yuan, a month in March and reached 1.797 billion yuan loss.

It is understood that a drop in demand in the economic crisis at the same time, domestic steel production capacity has to increase, resulting in a surplus of products. Domestic crude steel production in the first quarter of 1.24744 billion tons, an increase of 1.74 million tons, and production was rising month by month; the first quarter average 1,416,000 tons of steel production. If this rate of production in accordance with it, then this year will be 517 million tons of steel production, will go a long way beyond the limits of national indicators for planning this year 460 million tons. - 21396

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