The losses of large and medium-sized enterprises totaled more than 1 billion; the last industry-wide losses occurred from October 2008 to May 2009. Recently, China Steel Association released industry data for the first quarter. The total loss of domestic large and medium-sized enterprises in the first quarter exceeded 1 billion yuan. Zhang Changfu, vice president and secretary general of China Steel Association, said at the press conference that the steel industry has changed from the main industry loss in the fourth quarter of last year to “all-industry losses†and must be prepared for a long-term “cold winterâ€. It is understood that this is from October 2008 to May 2009, the domestic steel industry once again suffered a loss in the whole industry. The loss of the main business turned into a loss in the whole industry. According to the statistics of the large and medium-sized steel enterprises of the Iron and Steel Association, the net profit of the whole industry was 1.034 billion yuan in the first quarter of this year, which was changed from the loss of the main steel industry to the industry, and the loss was 33%. The loss of loss-making enterprises reached 9.098 billion yuan, an increase of 31.4 times. Qu Xiuli, deputy secretary-general of China Steel Association and director of the financial assets department, told reporters that the loss of the whole industry means that the losses of the main business such as steelmaking have further expanded. "In the fourth quarter of last year, although the main business suffered a large loss, it can also use the profit of the sideline business. Make up a supplement, but now plus the sideline can not make up." Qu Xiuli said that of the 80 companies monitored, only two companies did not decline in earnings. It is reported that as of April 16, eight steel companies have issued a warning for the first quarter. Among the 8 steel enterprises, only Pangang's vanadium and titanium were pre-increased, and among the remaining 7 companies, 2 were pre-reduced and 5 were losing money. Weakening demand and rising costs dragged down the performance The China Iron and Steel Association said that factors such as weaker market demand in the steel industry, lower steel prices and higher material prices have been the main reasons for the loss. Hu Yanping, an analyst at Union Steel, believes that the grim situation of low price, weak consumption and high cost has already appeared in the past year, but this year's situation is even more severe. The data shows that the apparent consumption of crude steel in the domestic market in the first quarter of this year only increased by 0.97%. In terms of price, steel prices in the first quarter have been low. According to the statistics of China Steel Association, by the end of March, the domestic steel comprehensive price index was 121.18 points, only slightly higher than the end of last year, down 10.05 points or 7.66% from the same period of last year. On the other hand, with the introduction of reform policies such as resources and energy prices, the prices of materials for steel production such as iron ore, coal, and electric power are rising, causing enterprises to face high cost pressures.
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