Chinese steel industry scenerio to worsen in Q4 2012 – MIIT
Although we have heard some reports that economic data in the first three quarters showed us our economy has touched the bottom level and stay stable, but Mr Huang Libing, deputy director of operation and monitoring department of MIIT, revealed that the most concern for Q4 lies in steel industry development.
He explained that domestic steel industry kept sliding with shrinking market demand since year, moreover, China crude steel production in January to September 2012 period increased by 1.7% YoY, the growth is down 9% versus the same period of 2011.
Secondly, the profit of 80 large and medium sized steel mills aggregately confronted a loss of CNY 5 billion, with a loss scope of 45%. Therefore, overcapacity and sluggish market performance worsened the outlook for Q4 2012