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

Affected by iron alloy charges stayed reduced, and foreign iron alloy businesses over the days it appears that the more sore – earnings proceeded to down turn, 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 movement of hard metal costs carried on to plunge in line, the profitability of in the household hard metal financial gatherings are in addition drastically reduced.

The evening of April 19, China’s Wuhan Iron and Steel Company shares of major steel production in 2008 Annual Report released in 2009 and the quarter reported by the provision for decline in value of large stocks, as well as preparation for the substantial decrease in steel demand for the impact of the year in 2008, as well as the performance of the first quarter of this year, there decline – 2008 operating income was achieved 73.339 billion yuan, up 35.41 percent growth, but decline as a result of provision of stock ready to 1.645 billion yuan, attributable to shareholders of listed companies net profit of 5.189 billion yuan, up 20 percent decline. Worse still, the realization of the first quarter 2009 operating income 10.913 billion yuan, up 30 percent drop in net profit 263 million yuan, up 87.17 percent year-on-year decline. Wuhan Steel shares pessimistically say that this year is still optimistic about the overall situation, the first half of the performance of the same period last year will be down more than 50%.

Prior to this, metal and iron alloy enterprises in China Baoshan Iron & Steel broadcast in 2008 the total earnings was 86.7 billion yuan, up 55.1 per hundred down turn, 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 electric commerce as a outcome of foremost customers to elaborate output of its iron alloy yield proceeded to decline. First quarter of this year dropped to the output design the company’s annals since the origin of the smallest issue, only five million tons. Actual output may be poorer, even less than the design for more than 300,000 tons.

Earlier in the day, another large-scale South Korean Pohang Iron and Steel Rail said that as of March 31, its last year’s snare earnings dropped 68 per hundred, which is the business since the first quarter of 2001, the biggest down turn since.

“China’s steel city of the second quarter of difficult to bottom out.” To the flow of iron and steel analyst Productivity Center Rongliang He said that the Chinese steel market after the end of the beginning of the year short-term rebound, prices fell sharply again. At present, the market demand, shrinking exports, while steel production also did not achieve the desired objectives, the overall downturn in steel market. In the global economy is expected to continue downward, the excess iron and steel production under the pressure of the second quarter of the domestic steel market has bottomed out, prices rebounded sharply difficult.

China Steel Association newest statistics display that 3 at the end of the household composite iron alloy cost catalogue to 97.59 points, dropped 44.72 points, 31.42 per hundred decline. China Steel Association in the groundwork of the cost catalogue in April 1994 of the composite iron alloy cost for 100 points, it is clear-cut that the integrated iron alloy charges have now less than 15 years ago.

“China’s surplus iron alloy capability considerably, the market provide force, more significantly, altered the tendency of the international finances down.” However, Rongliang He said that iron alloy charges have dropped harshly, and charges have fallen to the reduced charges the last cited space small. Steel charges in May in the general enterprise natural environment will be advanced, will go in a somewhat steady time period.