China Economic Review
Charting China’s changing economic terrain · Since 1990
Chinese iron mills: after big losses, good profits
August 5, 2009
Shanghai Securities News, quoting China Iron & Steel Association (CISA), said large and medium-size steelmakers realized RMB1.725 billion of profits during January to June.According to CISA statistics, the 71 large and medium-size steelmakers in China gained RMB1.2 billion in May and RMB3.545 billion in June. While rejoicing, slightly, at those figures, one must bear in mind that in the first half of the year, two thirds of the medium to large-size establishments (24 over 5 million tons a year) had losses and six out of the 10 over 10 million tons per year mills suffered deficits.
Steel Guru, sourcing its story from Shanghai Securities News, reports that in the first half large and medium-size steelmakers still lost RMB11.635 billion in their steel businesses.
Luckily, looking forward, the performances of the mill will be improved. Zhou Xizeng an analyst of CITIC Securities estimates that large and medium-size steelmakers will realize RMB5 billion of profits in July and might gain nearly RMB10 billion in August.