According to a press release by the China Iron and Steel Association (CISA), Chinese steel output increased in the January-February period this year and, as a result, inventory levels in China surged and Chinese steelmakers’ profitability declined in the given period due to rising iron ore prices.
As stated by the CISA, in the January-February period of the current year China’s crude steel output amounted to 154.7 million mt, up 3.1 percent year on year. Import iron ore prices had increased to $83.39/mt as of the end of February from $79.53/mt at the end of January.
Against this background, Chinese steelmakers’ profitability decreased. In the first two months of the year, CISA members’ sales revenues amounted to RMB 526.5 billion ($74.4 billion), down 6.04 percent year on year, while they recorded an aggregate gross profit of RMB 12.5 billion ($1.8 billion), down 35.8 percent year on year, the CISA stated.