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 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, 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 worsening in iron alloy market is not only the influence of metal and iron alloy enterprises in China, the worldwide iron alloy monster is furthermore “very injured.”

April 20, Japan’s largest steel companies Nippon Steel Corporation said that its fiscal 2008 regular profits over the previous fiscal year is expected to shrink by 43%, only 320,000,000,000 (about 3.2 billion U.S. dollars). Than its forecast 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 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 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 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.