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According to figures released by Henan Iron & Steel Association impacted by worldwide decreasing demand and falling steel prices, about 40% of private steel mills in Central China's Henan province have idled their whole operation. And the figure is expected to move up further if the weakness in steel market continues in October.

 

To minimize profit loss, most domestic mills have simultaneously cut output to support market prices. And in late Sep, major steel mills in China gathered in Hebei and agreed to cut output by 20% to mitigate the market pressure.

 

According to statistics from local steel association, crude steel production has fallen 3.5% and 9.92% respectively in July and August from the 2.15 million tonnes in June. And combined profit of surveyed enterprises in local has plunged 15.3% and 37.6%, or CNY 51 million and CNY 52 million respectively from CNY 333 million in June with negative growth rate of 14.33% compared with the 30.42% level in the same period of last year.

 

All steel mills in local eye large steel products inventories at the moment. And the stockpiles for Anyang Steel, the top one in local, has amounted to 0.2 million tonnes to 0.3 million tonnes so far. Meanwhile, insiders unveil that Anyang Steel has loosened its annualized goal of 10 million tonnes of production and CNY 50 billion of sales revenue.

 

 

 

Editor:    Ivy

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