Zhu Jimin, chairman of the
China Iron and Steel Association (CISA) has stated that the aggregate net profit of CISA member companies in October and November 2011 amounted to RMB 1.4 billion ($220 million) and RMB 1.22 billion ($194 million) respectively, with more than one third of companies suffering losses. In addition, he said that the domestic steel industry should get ready for a harder year in 2012.
Mr. Zhu stated that in January-November 2011 the CISA member companies saw an aggregate net profit of RMB 85.3 billion, 8.07 percent higher than the same period 2010. Although overall profits saw an increase, the average profit margin was only 2.55 percent.
The CISA official said that the main factors for the decrease in Chinese steelmakers' profits towards the end of last year were strong capacity utilization rates and the slowdown in downstream demand.