According to a report issued by China’s National Development and Reform Commission (NDRC), Chinese steel output increased by 4.5 percent in the January-September period this year, which was absorbed by higher demand in the country. As a result, the decline in Chinese steelmakers’ profitability seen in the first seven months of the current year indicated a further slowdown.
In the January-September period of the current year, CISA members steelmakers posted a gross profit of RMB 137.5 billion ($20.6 billion), down 9.46 percent, 19.14 percentage points slower than the decrease recorded in the first eight months this year.
As stated by the CISA, in the January-September period of the current year China’s crude steel output amounted to 781.59 million mt, up 4.5 percent year on year. As of September 30, average import iron ore prices increased to $123/mt, up 31.25 percent year on year, while average steel prices declined by 0.09 percent year on year.
In the January-September period, CISA member steelmakers registered an overall sales revenue of RMB 3.397 trillion ($0.51 trillion), up 5.44 percent year on year.
$1 = RMB 6.6725