Increased loss of iron and steel industry

Since the China Iron and Steel Association was informed that, despite the decline in steel production costs a lot, but because of market demand and existing production capacity exceeds demand, the product of poor sales and low prices and other reasons, resulting in production loss, one quarter of the domestic large and medium-sized steel loss of 3.308 billion yuan.

China Steel Association, manager vice head Luo Bingsheng said that the total hard metal goods produced is too high the first quarter of the source reasons for of enterprise losses. The first quarter advanced as a effect of the formation of the procurement market, and commanded to the distribute of goods produced scope for, trade overseas of hard metal yield as long as the matching interval plunged by 50%, and all turn to the in the household market, primary to oversupply of the in the household market; The charge is still the least since the end of last year spaces, and worse than the stage in 1994.

However, iron alloy charges and earnings over the identical time span last year, up 47.16 billion yuan contrasted to a decrease of margin is not large, but a decrease of only 20, accounting for 72 large and medium-sized enterprises for 34% of the metal and steel. Luo Bingsheng investigation This is because the cost of output over the identical time span have substantially decreased the cost of iron alloy dropped 350 yuan / ton. In supplement to coking coal charges by 12%, the household ore charges dropped 44 per hundred, while trades dropped 26 per hundred ore. As for the cost of coking coal charges, Luo Bingsheng referee will be modified downwards.

Although the decrease rate is not large, but the facts and numbers display that the decrease of a trend: The first two months decrease of 1.511 billion yuan, a month in March and come to 1.797 billion yuan loss.

It is appreciated that a fall in demand in the financial urgent position at the identical time, household iron alloy output capability has to boost, producing in a surplus of products. Domestic crude iron alloy output in the first quarter of 1.24744 billion tons, an boost of 1.74 million tons, and output was increasing month by month; the first quarter mean 1,416,000 tons of iron alloy production. If this rate of output in agreement with it, then this year will be 517 million tons of iron alloy output, will proceed a long way after the bounds of nationwide signs for designing this year 460 million tons.