Low steel prices hurting domestic producers

Qi Xiangdong, deputy secretary-general of the China Iron and Steel Association (CISA), said on Tuesday that low steel prices were hurting domestic producers, state media reported. Qi noted that "China’s 77 large and medium-sized steel companies reported combined profits of [US$922 million] in June, down nearly 40% from [US$1.47 billion] in May." He acknowledged that those figures could fall even further in July, but predicted a rebound in August as demand picks up after the global recession. Iron ore prices peaked in China at US$185 per ton in April. Prices then fell when the full effects of policymaker’s efforts to slow property growth began to bear fruit in the second quarter. The iron ore spot price is now around US$122 per ton.