According to the Metallurgy Industry Association of China's Hebei Province, in the first two months of the current year steel producers in the province incurred an overall loss.
In the January-February period, 61 steel producers surveyed in the province incurred an aggregate loss of RMB 202 million ($32.06 million), compared to the net profit of RMB 3.738 billion achieved in the same period last year. Wang Xuecheng, vice secretary-general of the association, said that, although the construction sector in the region is entering its peak season, local steel enterprises will continue to suffer from high production costs and low market demand.