Steel industry hit by tough first quarter
More than 45 percent of China’s steel companies reported first- quarter losses because of overcapacity, excess supply and sagging prices.
Total losses stood at 2.33 billion yuan ($380 million) against almost 8 billion yuan of profits in the same period last year, according to Monday’s report by the China Iron and Steel Association (CISA).
“The first quarter of 2014 was the most difficult quarter since the start of the century,” said CISA vice-president Zhang Changfu at a press conference in Beijing.
At the end of March, inventories amounted to 19.4 million tons, an increase of 43.5 percent on the start of the year.
Models show creations of graduates during China Graduate Fashion Week in Beijing.