Steel Makers Post Nearly US$1.9b Loss
The country’s main steel makers posted a loss of 12.77 billion yuan (US$1.87 billion) in November, the second monthly net loss after October, according to the latest data released by China Iron and Steel Association yesterday.
In the month, 48 out of the 71 steel makers were in the red, with a combined loss of 14 billion yuan. The number climbed from 42 in October, when losses were recorded at a combined 5.8 billion yuan.
Analysts attributed the loss to the high prices of raw materials the steel companies had purchased.
CISA Vice Secretary General Qi Xiangdong said the first six months saw price increases in iron ore, coal, coke and crude oil, which led to a 70-percent rise in steel prices over the same period last year. He said steel prices have plunged since September and fallen to 1994 levels.
Analysts said December’s picture would be just as dismal, despite a 20-percent rise in iron ore spot prices.