Monday, August 3, 2009

China Steel Profits May Hit $3 Billion In July

The Chinese steel industry's profit in July may have exceeded 20 billion yuan ($2.93 billion), its largest monthly gain in eight years, as domestic prices rose, the official Shanghai Securities News said on Monday, citing an official of the China Iron and Steel Association. The paper added that if steel prices remain stable, full-year profit for the industry could be 100 billion yuan, exceeding the previous year's 84.6 billion yuan.

It noted that industry website MySteel's benchmark index for domestic steel prices rose 11.9 percent in July, while the index for flat products rose 9.5 percent. Chinese steel prices have risen as government stimulus measures helped to boost the steel industry, the world's largest, back into a combined profit in May after seven consecutive monthly losses.

The industry remains locked in protracted price negotiations with global iron ore miners, however, as it seeks greater price reductions than those achieved by other steelmakers.

Source: Reuters

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