SteelOrbis Shanghai
According to the latest figures released by the China Iron and Steel Association (CISA), China's 71 large and medium steel mills registered a net loss of RMB 5.835 billion ($850 million) in the month of October - the first time these mills have registered an overall loss in the past six years. Of the mills in question, 42 are currently in the red. From January to October, the Chinese steel mills earned a gross profit of RMB 126.8 billion ($18.5 billion), down 0.93 percent compared with the same period last year.
In 1998, due to the financial crisis in Asia, China's steel industry indicated an annual deficit with the rate of return on net sales merely at 0.44 percent. Starting from 2002 Chinese mills began to make a recovery, but experienced a slump in January 2006, with their overall monthly profit dropping down to RMB 1.5 billion ($220 million).