The steel industry this year profit or record in nearly three years

By the end of November, the national tertiary rebar fell an average of 17.8% (623 yuan/ton), hot rolled plate fell 13% (458 yuan/ton); Australian fine fell 47.8% over the same period, 62% (64 yuan/ton), domestic ore dropped 36.8% (390 yuan/ton), coke (500 yuan/ton) down 35.7%. Due to the open years, manufacturing costs accounted for about 70% of the original fuel prices fell far more than the finished steel from 2 to 3 times, provide enterprises with the extremely favorable conditions for cost reduction. So, while this year, steel prices reached a record low, but in the main raw fuels such as iron ore and coking coal prices fell by more than steel price situation, China’s steel industry profitability and operating conditions are still get a big improvement. Therefore, according to business situation forecast profit total iron and steel industry this year or will reach 28 billion yuan of above, hit a high of nearly three years. Also suggests that the purchasing cost, a big drop in to our country iron and steel enterprises reduce manufacturing costs and improve profitability, has played a decisive role.

In October this year financial data of a few bright spots, respectively is: 1. Included in the cisa financial statistics of the national 88 key statistical units, 67 profit, 21 losses, percentage of loss-incurring enterprises 23.9%, than the highest 45.5% in April, down 21.6 percentage points. 2. During the reporting period the cumulative profit is 22.7 billion yuan, up 61.3% from a year earlier, an increase of 8.61 billion yuan, is expected to the year is expected to realize the profit of 28 billion yuan of above, set a new record of nearly three years for 22 years of business process of medium level; 3. The asset-liability ratio may – September to realize five notches, enough to show that the steel sheets are gradually improved; 4. Total wages 4.27 billion yuan more than the same period last year, an increase of 4.83%, clearly reveal a steel worker income growth far in excess of the CPI. So the author thinks that, the above 4 points is sufficient to interpret the management level of China’s steel industry, profitability and anti-risk ability is continue to improve and enhance, hit such as “China’s steel industry will collapse” yarns (pictured above).

Compared to the same indicators reflect the problem is still the financial cost is too high and people owed owe question: by the end of October, financial costs rose 20.7%, although greatly reduced from 29.25% in June, but clearly show that China’s steel industry funds still have large pressure, operating costs are still high; Accounts receivable and accounts payable and 21.3 billion yuan, 41.8 billion yuan, up 19.4% and 9.9%, respectively, also reflects the debt problems of industry chain is more outstanding, the enterprise financing difficulties and high cost of financing problems of economic development has always been nodes and difficulties, to be practical solution.