Steel Mak­ers Post Nearly US$1.9b Loss

Shanghai Daily - - CHINA -

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.

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