China Steel Association said that high prices and low profits will continue

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Abstract On February 24, 2011, China Iron and Steel Association said that a key task this year is to work hard to establish a stable system of raw fuel resources. In addition, Luo Bingsheng, executive vice president of China Steel Association, said that this year domestic steel companies may continue to maintain high costs, high prices and...

On February 24, 2011, China Iron and Steel Association said that a key task this year is to work hard to establish a stable system of raw fuel resources. In addition, Luo Bingsheng, executive vice president of China Steel Association, said that domestic steel companies may continue to maintain high cost, high prices and low profits this year.

The China Iron and Steel Association said that in view of the highly monopolized international iron ore seaborne trade, it is necessary to continue to adhere to the "going out" development strategy, increase investment, development and shareholding of overseas iron ore mines, and further increase the proportion of overseas equity mines. At the same time, China Steel Association also called on the state to strengthen policy support and efforts for domestic mine construction and production, and stabilize domestic production of mines; regulate the domestic raw fuel market order and promote the price of iron ore, coal, scrap steel, ferroalloys, etc. Smooth operation; carry out research on the establishment of national iron ore, coal and other strategic resource reserves and distribution systems; continue to do a good job in the management of imported iron ore agent system and imported iron ore flow.

According to the analysis of the China Iron and Steel Association, since the beginning of 2010, the purchase cost of imported iron ore, coking coal and other raw fuels has been rising. Only one imported iron ore has used foreign exchange of US$29.28 billion, equivalent to RMB190 billion. , all into the cost of steel production. Under the dual pressure of falling steel market prices and a significant increase in steel production costs, steel companies are having difficulty in production and operation.

The data shows that the profit level of the steel industry in 2010 has fallen sharply. The average annual sales profit rate of large and medium-sized steel enterprises is only 2.91%, which is lower than the average profit level of the national industrial industry. It is called the least profitable industry in the country.
 

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