China's steel industry profits and losses

China Iron and Steel Industry Association released the first half of the industry's operation on the 31st, showing that China's steel industry has been on the verge of a loss.

According to statistics, in the first half of the year, China Steel Association member steel companies realized a total profit of only 2.385 billion yuan, a substantial decrease of 54.549 billion yuan, a decrease of 95.81%; loss-making enterprises a loss of 14.248 billion yuan, the loss reached 33.75%. If the investment income is deducted, the main iron and steel industry is actually at a loss.

Although the investment in fixed assets of the steel industry continued to grow in the first half of this year, the growth rate declined. In the first half of the year, the accumulated investment in the fixed assets of the steel industry was 291.1 billion yuan, a year-on-year increase of 12.05%, but the growth rate was down by 4.8 percentage points year-on-year. The investment structure has also changed. In the past, investment in ferrous metal mining with less investment and weak foundation increased by 4.2 percentage points year-on-year in the first half of this year, while the growth of black smelting and rolling investment with over-investment and excess production capacity decreased by 5.4 percentage points year-on-year.

Zhu Jimin, executive vice president of the China Iron and Steel Association, said that the growth rate of China's steel production in the first half of this year has fallen significantly compared with the same period of last year, and the rapid growth in the past 10 years is turning into modest growth. Iron and steel enterprises must make good preparations for long-term "wintering."