News
China Steel Corporations (public companies) announced performance prediction of previous three quarters in 2012, where steel corporations suffer a red-light warning of profit decrease or deficit except for few companies. Angang Steel Corporation in China took the initiative and published a three-quarter prediction, which says that corporations will loose 3.17 billion. The 3rd quarter's loss will be over 1.1194 billion and daily loss will be 13000,000, which is a stark contrast against the 239 million net profit of the same quarter last year. Angang Steel Corporation states that the steel material market keeps recession starting this year and has been operating at low prices, which further goes down especially in the second half year. The average steel material price of the corporation drops by 14% from January to Spetember. However, Angang is not the only one to experience deficit. Announcement shows that Hunan Valin Steel Tube & Wire Corporation's prediction for loss of three previous quarters will be 2.52 to 2.58 billion, and 1.35 billion for SGIS
Songshan Corporation. That is a drop by 3180.25%. Baoshan Iron & Steel Corporation anoounced its repurchace progress and becomes one of the few steel corporations with positive performance. Announcement also shows that repurchase price interval for corporations spans from 4.51 to 4.65, and the total pay is around 998 million.
Public Corporations' loss prediction is only an epitome of suffering steel industry. Statistics by CHINA IRON & STEEL ASSOCIATION (CISA) show that the August revenue of medium and large steel corporations is 279.45 billion, and the net profit revenue is 4.196 billion, which means that profit gain drops to the annual lowest. "Golden September and silver October" is only a seasonary and temperary re-adjustment in the industry. Lgmi Research says, " July and August is when the whole-year steel price drops the most. The cost of steel corporations in the former term is higher, and the consumption in the latter term is inadequate. The market didn't make purchase for the high-price materials stock-piled. The overall supply-demand contradiction of the steel industry still remains".
