Steel costs declined back to 15 years in the past, steel and hard metal enterprises gloomy day

By Professional editor working for himfr.

Affected by hard metal costs waited small, and foreign hard metal financial gatherings through the days it looks like that the more aching - yield carried on to descent, more and more losses.

"My iron and steel," the latest statistics show that over the past week, domestic steel prices continued to trend down, this is the tenth consecutive week of decline steel. Plate prices continued to decline, has been narrowed, the biggest price reduction in tons of 100 yuan or less; hot and cold rolled slightly lower prices, the Shanghai market thick hot-rolled product specifications tons around 3080 yuan price level consolidation; large tons of material prices in the price drop of 20 yuan.

And the tendency of iron alloy charges proceeded to drop in line, the profitability of household iron alloy businesses are furthermore drastically reduced.

The night time of April 19, China's Wuhan Iron and Steel Company allocations of greatest hard metal goods produced in 2008 Annual Report liberated in 2009 and the quarter stated by the provision for descent in worth of large stores, as well as training for the extensive diminish in hard metal demand for the consequence of the year in 2008, as well as the recital of the first quarter of this year, there descent - 2008 running wages was realised 73.339 billion yuan, up 35.41 out of 100 expansion, but descent as a effect of provision of store geared up to 1.645 billion yuan, linked to shareholders of registered financial gatherings mesh yield of 5.189 billion yuan, up 20 out of 100 decline. Worse still, the realization of the first quarter 2009 running wages 10.913 billion yuan, up 30 out of 100 decline in mesh yield 263 million yuan, up 87.17 out of 100 year-on-year decline. Wuhan Steel allocations pessimistically declare that this year is still confident about the complete circumstances, the first half of the recital of the matching interval last year will be down more than 50%.

Prior to this, steel and hard metal enterprises in China Baoshan Iron & Steel advertised in 2008 the total yield was 86.7 billion yuan, up 55.1 out of 100 descent, down more than WISCO.

The worsening in iron alloy market is not only the influence of metal and iron alloy enterprises in China, the worldwide iron alloy monster is furthermore "very injured."

April 20, Japan's biggest iron alloy businesses Nippon Steel Corporation said that its fiscal 2008 normal earnings over the preceding fiscal year is anticipated to shrink by 43%, only 320,000,000,000 (about 3.2 billion U.S. dollars). Than its outlook in January when the 400 billion yen.

Nippon Steel said that the automotive and electric commerce as a outcome of foremost customers to elaborate output of its iron alloy yield proceeded to decline. First quarter of this year dropped to the output design the company's annals since the origin of the smallest issue, only five million tons. Actual output may be poorer, even less than the design for more than 300,000 tons.

Earlier in the day, another large-scale South Korean Pohang Iron and Steel Rail said that as of March 31, its last year's snare earnings dropped 68 per hundred, which is the business since the first quarter of 2001, the biggest down turn since.

"China's hard metal habitation of the second quarter of arduous to foundation out." To the flow of steel and hard metal analyst Productivity Center Rongliang He said that the Chinese hard metal market after the end of the commencing of the year short-term rebound, costs plunged stridently again. At present, the market demand, shrinking trade overseas, while hard metal goods produced in addition did not realise the wished for objectives, the complete downward spiral in hard metal market. In the worldwide economic procedure is looked frontwards to to carry on heading down, the overload steel and hard metal goods produced under the insist of the second quarter of the in the household hard metal market has bottomed out, costs rebounded stridently difficult.

China Steel Association current statistics present that 3 at the end of the in the household composite hard metal charge indicator to 97.59 points, plunged 44.72 points, 31.42 out of 100 decline. China Steel Association in the training of the charge indicator in April 1994 of the composite hard metal charge for 100 points, it is blatant that the integrated hard metal costs have now less than 15 years ago.

"China's overload hard metal scope for notably, the market deliver insist, more meaningfully, modified the movement of the worldwide economic procedure down." However, Rongliang He said that hard metal costs have plunged stridently, and charges have declined to the small costs the second referred space small. Steel costs in May in the complete enterprise surroundings will be enhanced, will move into a quite unwavering time period. - 20605

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