Steel costs declined back to 15 years in the past, steel and hard metal enterprises gloomy day

Affected by hard metal costs waited small, and foreign hard metal financial gatherings through the days it looks like that the more aching – yield carried on to descent, more and more losses.

“My iron and steel,” the latest statistics show that over the past week, domestic steel prices continued to trend down, this is the tenth consecutive week of decline steel. Plate prices continued to decline, has been narrowed, the biggest price reduction in tons of 100 yuan or less; hot and cold rolled slightly lower prices, the Shanghai market thick hot-rolled product specifications tons around 3080 yuan price level consolidation; large tons of material prices in the price drop of 20 yuan.

And the trend of steel prices continued to fall in line, the profitability of domestic steel companies are also drastically reduced.

The night time of April 19, China’s Wuhan Iron and Steel Company allocations of greatest hard metal goods produced in 2008 Annual Report liberated in 2009 and the quarter stated by the provision for descent in worth of large stores, as well as training for the extensive diminish in hard metal demand for the consequence of the year in 2008, as well as the recital of the first quarter of this year, there descent – 2008 running wages was realised 73.339 billion yuan, up 35.41 out of 100 expansion, but descent as a effect of provision of store geared up to 1.645 billion yuan, linked to shareholders of registered financial gatherings mesh yield of 5.189 billion yuan, up 20 out of 100 decline. Worse still, the realization of the first quarter 2009 running wages 10.913 billion yuan, up 30 out of 100 decline in mesh yield 263 million yuan, up 87.17 out of 100 year-on-year decline. Wuhan Steel allocations pessimistically declare that this year is still confident about the complete circumstances, the first half of the recital of the matching interval last year will be down more than 50%.

Prior to this, iron and steel enterprises in China Baoshan Iron & Steel announced in 2008 the total profit was 86.7 billion yuan, up 55.1 percent decline, down more than WISCO.

The downward spiral in hard metal market is not only the consequence of steel and hard metal enterprises in China, the global hard metal oversized is in addition “very injured.”

April 20, Japan’s biggest iron alloy businesses Nippon Steel Corporation said that its fiscal 2008 normal earnings over the preceding fiscal year is anticipated to shrink by 43%, only 320,000,000,000 (about 3.2 billion U.S. dollars). Than its outlook in January when the 400 billion yen.

Nippon Steel said that the automotive and electrical industries as a result of major customers to expand production of its steel output continued to decline. First quarter of this year fell to the production plan the company’s history since the founding of the lowest point, only five million tons. Actual production may be worse, even less than the plan for more than 300,000 tons.

Earlier in the day, another big South Korean Pohang Iron and Steel Rail said that as of March 31, its last year’s net income fell 68 percent, which is the company since the first quarter of 2001, the largest decline since.

“China’s hard metal habitation of the second quarter of arduous to foundation out.” To the flow of steel and hard metal analyst Productivity Center Rongliang He said that the Chinese hard metal market after the end of the commencing of the year short-term rebound, costs plunged stridently again. At present, the market demand, shrinking trade overseas, while hard metal goods produced in addition did not realise the wished for objectives, the complete downward spiral in hard metal market. In the worldwide economic procedure is looked frontwards to to carry on heading down, the overload steel and hard metal goods produced under the insist of the second quarter of the in the household hard metal market has bottomed out, costs rebounded stridently difficult.

China Steel Association current statistics present that 3 at the end of the in the household composite hard metal charge indicator to 97.59 points, plunged 44.72 points, 31.42 out of 100 decline. China Steel Association in the training of the charge indicator in April 1994 of the composite hard metal charge for 100 points, it is blatant that the integrated hard metal costs have now less than 15 years ago.

“China’s excess steel capacity significantly, the market supply pressure, more importantly, changed the trend of the global economy down.” However, Rongliang He said that steel prices have fallen sharply, and costs have dropped to the low prices the latter space small. Steel prices in May in the overall business environment will be improved, will enter a relatively stable time period.