Metalnewsnet 1 June ：

Xinhua reported that China 77 large and medium sized steel makers scored a profit of CNY 33.9 billion in the first four months compared with a CNY 4.1 billion loss during the same period last year.

Mr Luo Bingsheng vice chairman of the China Iron and Steel Association said the overall profit margin for China steel industry in the first four months was just 3.6% lower than the average profit margin of the country industrial sector. He said that cost of steel production would continue to rise from that of the first quarter given increased iron ore prices and depleted inventories

The average CIF price of iron ore in the January to April period has increased 26.1%YoY. Mr Luo said meanwhile the domestic steel prices have began to drop from the mid April. Price of deformed steel bars slid 10% to CNY 4,000 per tonne. He said that pressed by lower sales prices and increasing cost, steel industry will experience another round of profit losses. Some steel makers may even slide into the red again.

According to the International Iron and Steel Institute from January to April the gross production of crude steel worldwide has increased 31.8%YoY while the presumed apparent demand for steel this year grew only 10.7%.

(from Xinhua)