According to Mr Li Xinchuang, Vice President of China Metallurgical Industrial Planning & Research Institute, due to the fall in exports, the Chinese domestic steel market remains gloomy.
Mr Li noted that although the production volume of steel in the domestic market is at a high level this year, export volumes have fallen sharply amid the international financial turmoil.
He said that "China's steel export in this Q1 dropped by 55%YoY. The domestic steel price is compacted to the level of 1994, thus, the Chinese steel industry has witnessed a great loss especially in Q1 with a loss of CNY 3.3 billion for major enterprises.”
The present steel output is oversupplied and market prices have dived as a result. Sales revenues declined by 21.7% compared with the same time of last year while profit tax fell by 83% YoY.
Source: Steel Guru
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