The results of the production of large and medium steel plants in China

According to the statistics of the Chinese Black Metallurgy Association, the total profit of 86 large and medium steel plants amounted to 11.27 billion CNY in the first nine months of this year. In September, their profit reached 3.266 billion CNY, which is the highest result from the beginning of the year.

During the first half of this year, steel plants are on the verge of deficit, since their profit is clamped by weak demand and low price. As of the end of June 2013, 86 large and medium steel plants in China received a total of 2.267 billion yuan, and the average profit from sales was only 0.13 percent. However, they managed to turn the situation at the end of August.

The price of steel continues to decrease since September, and an increase in profit should be attributed to income from non -metallurgical business. Inventory at large and medium -sized plants in China showed that the number of steel in warehouses in the middle of October was 13.788 million tons, which indicates a growth of 2.12 percent. These data are inferior only to the highest level of 14.51 million tons recorded in the middle of March.

The steel market in China, most likely, will continue to maintain vulnerability and will be subject to fluctuations in the fourth quarter of this year, since the inventory data at key steel plants and high rates of production began to affect and so weak demand.