Ministry of Industry and Information Technology: In 2013, the iron and steel industry's revenue margin was only 2.16%

In 2013, the output of the Chinese steel industry increased by 7.8%, and the profit rate was only 2.16 percent. According to a report released recently by the Ministry of Industry and Information Technology, the growth rate of production in the steel industry in 2014 will be slowed down. The overall profit will remain low, and the production and operation situation will remain grim.

According to statistics, from January to November, China produced 710 million tons of crude steel, a year-on-year increase of 7.8%, and the growth rate was 4.9 percentage points higher than the same period of last year. Exports of steel amounted to 56.69 million tons, an increase of 12% over the same period of last year.

Since the beginning of the year, the price of steel fell back. The domestic steel price index fell from 111.12 points in mid-February to 98.52 points at the end of June. In July and August, it rebounded slightly. At the end of November, the domestic comprehensive steel price index fell to 99.33 points. Affected by the accelerated release of production capacity, the market continues to show a situation where supply exceeds demand.

In 2013, the profit margin of the entire steel industry was only 2.16 percent, and the company's loss was down by 2.67 percentage points year-on-year, but it was still as high as 23.4 percent.

The “2013 Report on the Operation of China's Industrial Communication Industry” released by the Ministry of Industry and Information Technology believes that the investment in infrastructure and real estate in the Chinese Mainland may fall back next year, and the demand for steel and other downstream steel industries, such as automobiles and ships, will be difficult to increase significantly. It is expected that domestic demand in the steel industry will be difficult to achieve. Change.

The International Steel Association recently predicted that the global steel apparent consumption will increase by 3.3% in 2014, only 0.2 percentage points higher than this year. The slow growth in demand, coupled with the apparent increase in international trade frictions, is unlikely to further accelerate steel exports.

According to the Ministry of Industry and Information Technology, the contradiction between supply and demand in the market is difficult to reverse in the short term. In the absence of a rebound in steel prices, iron ore prices remain high and will further erode the profits of steel companies.

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