China Org reported that China’s steel industry saw its profits nearly halved in the first two months of 2019 from a year earlier, as output growth accelerated. According to the National Development and Reform Commission, the country’s top economic planner, the sector reported profits of CNY 29.6 billion (USD 4.4 billion) in the January to February period, a decline of 49.5% year on year. The profit slump came as market supply continued to expand. Crude steel output grew 9.2% to 149.6 million tonnes, 3.3% higher YoY.
As a result of government efforts to cut overcapacity, the steel market has recovered recently, prompting some companies to attempt to expand capacity, according to Lyu Guixin, an inspector with the raw material department of the Ministry of Industry and Information Technology. he further said that iron ore prices continued an upward trend in recent months as overseas mine accidents disrupted supplies. Experts said that Iron ore futures prices have increased nearly 40 percent since the start of the year, and still have room to rise, pushing steel prices higher.
Brazil’s Vale dam accidents and the suspension of the transportation of iron ore in Australia because of cyclones have pushed up prices of the steel-making material.
Source : CHINA ORG
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