Steel prices dropped back to 15 years ago, iron and steel enterprises sad day

Affected by steel prices remained low, and foreign steel companies across the days it seems that the more painful – profits continued to decline, more and more losses.

“My steel and steel,” the current statistics present that over the past week, in the household hard metal costs carried on to movement down, this is the tenth following week of descent steel. Plate costs carried on to descent, has been constricted, the largest charge lessening in tons of 100 yuan or less; sultry and chilled turned over to some extent worse costs, the Shanghai market wide hot-rolled wares specifications tons throughout 3080 yuan charge stage consolidation; large tons of material costs in the charge decline of 20 yuan.

And the tendency of iron alloy charges proceeded to drop in line, the profitability of household iron alloy businesses are furthermore drastically reduced.

The night of April 19, China’s Wuhan Iron and Steel Company portions of foremost iron alloy output in 2008 Annual Report issued in 2009 and the quarter described by the provision for down turn in worth of large supplies, as well as groundwork for the considerable decline in iron alloy demand for the influence of the year in 2008, as well as the presentation of the first quarter of this year, there down turn – 2008 functioning earnings was accomplished 73.339 billion yuan, up 35.41 per hundred development, but down turn as a outcome of provision of supply prepared to 1.645 billion yuan, ascribed to shareholders of recorded businesses snare earnings of 5.189 billion yuan, up 20 per hundred decline. Worse still, the realization of the first quarter 2009 functioning earnings 10.913 billion yuan, up 30 per hundred fall in snare earnings 263 million yuan, up 87.17 per hundred year-on-year decline. Wuhan Steel portions pessimistically state that this year is still hopeful about the general position, the first half of the presentation of the identical time span last year will be down more than 50%.

Prior to this, steel and hard metal enterprises in China Baoshan Iron & Steel advertised in 2008 the total yield was 86.7 billion yuan, up 55.1 out of 100 descent, 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 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 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 latest statistics show that 3 at the end of the domestic composite steel price index to 97.59 points, fell 44.72 points, 31.42 percent decline. China Steel Association in the preparation of the price index in April 1994 of the composite steel price for 100 points, it is apparent that the integrated steel prices have now less than 15 years ago.

“China’s overload hard metal scope for notably, the market deliver insist, more meaningfully, modified the movement of the worldwide economic procedure down.” However, Rongliang He said that hard metal costs have plunged stridently, and charges have declined to the small costs the second referred space small. Steel costs in May in the complete enterprise surroundings will be enhanced, will move into a quite unwavering time period.