According to a press release issued by the China Iron and Steel Association (CISA), Chinese mills have posted lower profits in the January-August period this year despite higher production, because of the surge in iron ore prices. However, the fall in overall profits was slower than in the first seven months of 2020. Also, steel inventory levels in China moved down by 1.8 percent as of the end of August compared to the end of July, while they were down by 38.9 percent compared to March 10 this year.
In the January-August period of the current year, CISA-member steelmakers posted an aggregate gross profit of RMB 109.64 billion ($16.1 billion), down 18.6 percent, down 10 percentage points compared to the first seven months of the year.
As stated by the CISA, in the January-August period of the current year China’s crude steel output amounted to 688.89 million mt, up 3.7 percent year on year. Average import iron ore prices increased to $119.93/mt in August this year, up 12.6 percent month on month, while average steel prices rose by 1.2 percent month on month in the given month.
In the January-August period, CISA-member steelmakers registered an overall sales revenue of RMB 2.9 trillion ($0.43 trillion), up 5.8 percent year on year.
$1 = RMB 6.8171