IRON and STEEL   Iron Ore  

China’s steel sector profits fall sharply in November

China's steel sector profits fell by 26pc on the month in November, the sharpest month-on-month drop in profits this year.

The steel industry — including primary and secondary producers — made a gross profit of 31bn yuan ($4.52bn) in November compared with Yn42bn in October, according to calculations based on the data from the national bureau of statistics (NBS).

Cumulative January-November gross profits were higher by 50.2pc at Yn386.2bn. Total steelmaking revenues increased by 16pc during this period to Yn6.14 trillion.

China's steel sector profits may shrink next year on the back of slowing demand from the real estate and automobile industries. But an expected uptick in infrastructure investment and progress in the US-China trade dispute could offer support to prices and profit margins.

Steel profits took a sharp fall in November as downstream construction demand slowed because of the onset of winter in north China, while looser winter output restrictions resulted in higher supply compared with last year when output curbs were much tighter.

Domestic steel prices fell by more than 20pc in November.

Domestic prices of hot-rolled coil (HRC) has shown a slight increase so far this month, while rebar prices have fallen by more than 5pc. Steelmaking profits are still quite low, less than half of the levels seen in October and early-November.

Average rebar profits have fallen to Yn300-400/t this month compared with Yn400-500/t last month, although HRC profits have increased to Yn150-200/t compared with Yn20-120/t last month. Wire-rod producers' profits are at Yn300-400/t, while billet producers are making Yn150-250/t in profits.

Mills' profits have improved over the past few days with better cost control. The margin for rebar was at Yn300-400/t in north China, although some mills in south China are making Yn600/t in profits, said a Tangshan-based iron ore trader.

Mills have reduced their iron ore inventories and increased use of low-grade fines and lower-priced medium-grade fines to cut costs.

News No: 3101
Date: 2018/12/28 - 13:23
News Source: Argus Media

China  steel  NBS  HRC  iron ore 


Leave a Comment:


Imports of Easy Open Aluminum Can Lids Hit $11m

About 1,882 tons of easy open aluminum can lids worth about $11 million were imported into Iran during the first half of the current Iranian year (March 21-Sept. 22), data released by the Islamic Republic of Iran Customs Administration show.

How China’s Graphite Electrodes and Needle Coke Market Perform this Week?

SteelMint has heard from its sources that after the Graphite electrodes (GE) prices in China turned stable last week amid government’s liquidity boost in the economy, the decline in domestic steel prices and ample steel availability has once again driven down the country’s GE prices.

Global Ferrous Scrap Market Overview - Week 2, 2019

This week observed strengthening of demand both in Turkey and Asian markets on limited inventories available.

Iron Ore Prices Seen Stagnant on Rising Supplies, Asia Demand to Support

New Delhi – Global iron ore prices are seen stagnating in the next few years on excessive supplies and slowing Chinese demand, yet a strong growth elsewhere in Asia is expected to keep prices supported and trade booming.

Japan: Kanto Monthly Scrap Export Tender for Jan'19 Fetches Bid Lower by USD 6.5

As per recent updates received from sources, ‘Kanto Tetsugen’- Japan’s monthly ferrous scrap export tender for Jan’19 concluded today (11th Jan) in the Kanto region. Total 20,000 MT H2 scrap auctioned through three winning bids presented at an average of JPY 28,775/MT (USD 266), FAS in Jan’19.

Canada: Iron Ore Exports Down 21% in Nov'18

Trade statistics released by Canada custom shows that the iron ore exports by the country recorded at 4.01 MnT in Nov'18. The exports depicted fall of 21% as compared to Oct'18 exports at 5.1 MnT. On yearly basis exports witnessed a fall of 4% as against 4.16 MnT in Nov'17.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners