In October this year, Hubei Province-based Chinese steel giant Wuhan Iron and Steel (Group) Corporation (WISCO) registered a total of 3.02 million mt, 3.22 million mt and 3.36 million mt in pig iron, crude steel and finished steel outputs respectively. Specifically, one of its subsidiaries Wuhan Iron and Steel Company Limited produced 1.37 million mt of pig iron, 1.46 million mt of crude steel and 1.38 million mt of finished steel during the period under review. Meanwhile, the outputs of the products in question for Liuzhou Iron and Steel Co., Ltd, another subsidiary of WISCO, were respectively 820,000 mt, 920,000 mt and 1.03 million mt. Two other WISCO subsidiaries, i.e., Kunming Iron and Steel Co., Ltd and Echeng Iron and Steel Co., Ltd, respectively produced 530,000 mt and 310,000 mt of pig iron, 510,000 mt and 320,000 mt of crude steel, and 630,000 mt and 330,000 mt of finished steel in October.
During the month in question, WISCO realized RMB 15.9 billion ($2.4 billion) and RMB 258 million ($38.9 million) in operating revenue and net profit respectively. Net profits recorded by the four subsidiaries of WISCO - Wuhan Iron and Steel Company Limited, Liuzhou Iron and Steel Co., Ltd, Kunming Iron and Steel Co., Ltd and Echeng Iron and Steel Co., Ltd - in October this year were respectively RMB 151 million ($22.7 million), RMB 71 million ($10.7 million), RMB 40 million ($6.02 million) and RMB 8 million ($1.21 million).
In the first 10 months of the current year, WISCO produced 28.64 million mt, 30.31 million mt and 29.49 million mt of pig iron, crude steel and finished steel respectively, up 17.79 percent, 21.65 percent and 24 percent as compared to the corresponding period of last year. The group's operating revenues and net profit were respectively RMB 155.9 billion ($23.5 million) and 2.48 billion ($373 million) for the period in question.
As stated by WISCO in its report, with the winter season approaching, the steel industry in China will probably suffer from a slight shrinkage in demand while steel supplies may decrease by a larger margin. Thus, according to WISCO, it is expected that steel prices in China's domestic market will likely register a decline in the coming period.