China Steel Association: In The First Half Of This Year, The Cost Of Large And Medium Sized Steel Enterprises Increased By 57.57%, And The Overall Profit Level Declined.

Since the beginning of this year, China's iron and steel enterprises are facing tremendous pressure of rising costs.

According to the third quarter industrial information released by the China Iron and Steel Industry Association (hereinafter referred to as "China Steel Association") in Beijing yesterday, the average manufacturing cost of steel making iron and steel production increased by more than 250 billion yuan, or 57.57%, in the first half of this year due to the substantial increase in prices of raw materials and fuel purchased.

It is worth noting that the overall profitability of iron and steel enterprises is declining.

According to statistics, in the first half of this year, the profit margin of products sold by large and medium-sized iron and steel enterprises was 7.61%, 0.95 percentage points lower than that of the same period last year. 4 of the 71 iron and steel enterprises suffered losses, with a loss of 424 million yuan and a 5.63% loss.

In addition, the difficulties faced by enterprises in production and production are facing increasing capital turnover, especially in small and medium-sized iron and steel enterprises.

Regarding this, Ma Keming, an analyst at Huatai Securities, said that because of the rising cost, the profits of steel listed companies will decline.

"Steel prices will remain at a high level in the second half of the year, but attention should be paid to preventing large fluctuations in steel prices due to changes in supply and demand."

Luo Bingsheng, executive vice president of China Steel Association, said.

He pointed out that in the first half of this year, the growth rate of GDP, the growth rate of real fixed assets investment, the increase of the national industrial added value and the export growth rate all showed a downward trend, and this trend will continue to the second half of the year.

In terms of steel exports, the total net exports of crude steel in the first half of this year were 19 million 879 thousand and 300 tons, a decrease of 11 million 49 thousand and 400 tons over the same period last year, down 35.75%.

"This shows that the policy effect of controlling exports continues to play a significant role. From this point of view, it seems unlikely that the new export policy will be introduced."