International Steel Mills
December 26, 2013
Chinese Steel Companies to Face Shutdowns
Written by Sandy Williams
Chinese steel companies are facing “lofty production, high costs, low prices and poor profitability,” according to Zhang Changfu, deputy chairman of the China Iron and Steel Association as reported by the National Business Daily.
Chinese steel production in November rose to 60.9 million tonnes, up 4.2 percent year-over-year according to the World Steel Association. Steel prices fell 8.9 percent year-over-year to an average price of 3,462 yuan per tonne ($570.48). CISA says the Chinese steel industry year-to-date profits were 16.18 billion yuan ($2.65 billion) with a profit margin of only 0.48 percent. The profit on a tonne of steel averaged only 28 yuan per tonne ($4.61).
