China`s crude steel output suffers first decline in 20 years
Source: www.chinamining.org Citation: China Knowledge Date: July 30, 2015
China`s iron and steel industry experienced continuous recession in spite of the nation`s economy tending to be stabilized under a series of stimulus policies, according to the latest press release held by China Iron and Steel Association (CISA).
CISA said that the output of crude steel dropped 1.3% year on year to 410 million tons in the first half of this year, signaling the first decline in nearly 20 years, and steel overcapacity still remains.
In the first six months of this year, the sales income from China`s large and mid-sized steel companies fell 17.9% to RMB 1.5 billion, and its core business suffered a heavy loss of RMB 21.68 billion in the period.
The sustained sluggish demand and long-time low price for steel drag down innovation and transformation in the sector, a senior official in CISA said. Furthermore, the difficulty and high costs in corporate financing, together with the trade conflict due to surging steel export also put huge pressure.
The overproduction of steel products since 2008 financial crisis and falling prices caused by shrinking domestic demand have been the major headache for China.
China should actively adapt to the changes and transform their business model to foster new profit growth in the future, CISA added.
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