Four months ago, steel enterprises' profitability showed a significant increase, because last year iron ore prices were relatively low, so Chinese steel enterprises stored a lot of iron ores. Although this year iron ore prices are soaring again, Chinese steel enterprises are still mainly using iron ore inventories.
The figures show that in the first four months of this year, prices of imported iron ores increased 26% year-on-year, while during the same period of time, the production costs of medium-sized steel enterprises increased by 15%. This shows that the first four months of the year, actual consumption of steel was mainly of last year's low-priced stocks. After the first quarter of this year, iron ore prices will rise as cheap imports of ore consumption are exhausted.
Due to rising costs, the profitability of China's steel enterprises will be severely affected, and some companies may fall into debt.
Frbiz analyzes that iron ore (http://www.frbiz.com/catalog-22000000- 1/minerals_metallurgy.html ) price rises have led to increased steel prices and compressed steel manufacturers' profits. More importantly, raw materials prices have increased greatly, further reinforcing the global inflation.
About Frbiz.com
Frbiz.com is a promising e-commerce company and a leading vertical search engine company in China. Frbiz.com offers a variety of high quality products such as manual juicers (http://www.frbiz.com/q-manual_juicers/ ), wine openers (http://www.frbiz.com/q-wine_openers/ ), tungsten carbide wedding bands (http://www.frbiz.com/q-tungsten_carbide_wedding_bands/ ) and many more.
For more information, please contact: Frbiz.com Tel: +86-10-6556-9770 Email: my@frbiz.com
SOURCE Frbiz.com
Tianjin Over World Non Coke Iron Making Technical Consultancy Co.,Ltd. All Rights Reserved
Tel.:+86-22-24410619 Fax:+86-22-24410619
TJ ICP 1100023 Email:info@driinfo.com