This year the domestic steel mills profit is expected to be up to 20 billion yuan

After a dismal 2012 years later, the Chinese steel mills are this year, there are signs of improvement. On September 25, cisa vice-chairman Wang Xiaoji on the 13th international symposium on Chinese steel raw materials, said 1 to August this year, the domestic large and medium-sized steel mills profit of about 8 billion yuan, if after a few months to maintain profitability of July and August, this year the key steel mills are expected to achieve profits of 20 billion yuan. Last year, the domestic key iron and steel enterprise total sales income of 35441. 100 million yuan, year-on-year decline in 4. 31%; Profit is only 15. 8. 1 billion yuan, fell as much as 98. 22%. Thus, the key steel mills profit this year will be over 10 times last year. Since this year, the domestic steel prices continued to fall, raw material costs remain high, & other iron and steel enterprise; Both suffer indignities & throughout; , also present the monthly decline in profits of tai, in June, the industry in monthly loss again. But in July, steel prices rebounded, the enterprise profit profitable again, and reach new highs this year. Data show that 1 to July this year the domestic large and medium-sized steel mills profit of 49. 4. 3 billion yuan, profit of 3. 1 billion yuan, in August before August profit of about 8 billion yuan. “ Compared with last year, this year's steel mills profit does have improved. Although iron and steel business not has loss-mitigation significantly. ” Nishimoto Shinkansen, chief analyst at qiu-ping liu said. In her view, this year, the enterprise is very important to improve capacity utilization, & other; As the processing industry, rise to reduce fixed cost amortization of production, in the first half of this year's apparent consumption of crude steel reached more than 8%, demand digestion level can also & throughout; 。 And steel mills production costs fell, as steel mills profit turn good key factors. In coking coal, for example, average purchase cost 1 ~ 6 months of the year for 1119. 52 yuan/ton, down 327 yuan/ton, the decline of 22. 63%. And domestic iron ore concentrate ( Dry basis) And imported powder ore the cumulative average purchasing cost, also have 6 respectively in the first half of the year. 40% and 5. The decline of 22%. In the first quarter of this year's profits improve contributing to overall profits during the first half of the main force. Then, by the end of last year to fill demand, steel prices rose sharply, steel mills ex-factory prices generally rise sharply. “ Last year, steel prices is the rapid fall, many companies had time to adjust, this year is slowly falling, steel mills in the inventory without too much loss. ” On September 25, a steel mills people attending to the 'first financial daily' reporter said. Notable is, in the profits, the vast majority are not from the iron and steel business. The conference, a senior, said minmetals development at present, the iron and steel enterprise's profit comes mainly from mining, financial investments and the steel industry, if deduct investment income, iron and steel business is actually losing money. The steel industry, cisa vice-chairman concurrently secretary general zhang changfu said recently that in June this year 1 ~ 7 China increase to more than 20 million tons of large steel mills main business income accounted for 77%, the steel industry revenues by more than one 5. Among them, the industry leader baosteel last year, the steel industry accounts for the ratio of the main business income of 23%, has risen to 33% in the first half of this year, shagang group private steel enterprises accounted for the steel industry is from last year's 32. 44 66% up to now. 6%. Wang Xiaoji thinks, ore price fast rise slow downs, upstream downstream steel prices by cutting, is the main reason for the core business of steel mills operating difficulties. Specifically, since February of this year, crude steel production remains high, monthly average daily level is above 2 million tons, among them, 1 ~ the crude steel production in July 4. 5. 6 billion tons, year-on-year growth of 7. 1%, and steel demand boost continued lack of power, resulting in steel prices continued to fall. But the price of steel, iron ore prices rise far exceeds the from the market lows in early June to August 20, rebar futures prices rose 11. 4%, in order to calculate the typical 62% grade iron ore platts index, rose nearly 23. 3%.