NBS: China’s Jan-Nov ferrous sector’s profit growth ebbs
The ferrous industry posted a total profit of Yuan 386.2 billion ($56 billion) for the first eleven months, in comparison with Yuan 1.55 trillion for the oil and gas industry.
The growth rate for the ferrous sector, nevertheless, was much higher than the overall growth 11.8% year on year for all the industrial sectors nationwide including all enterprises with annual business revenue at or above Yuan 20 million over January-November, though the latter’s increase was just 1.8 percentage points than the first ten months, according the NBS data.
He Ping from the Industry Dept of NBS was quoted in an analytic post by the bureau, attributing the lower growth in industrial enterprises’ profits for both November and the first eleven months to “the slow-down in the growths of their production and sales and ex-works prices, and higher production and operational costs”.
China’s steel producers indeed went through a very challenging November with the domestic steel prices on a free fall throughout the month, and the national HRB 400 20mm dia rebar price, a key indicator of the domestic steel market for example, lost a total of Yuan 722/t on month to Yuan 4,006/t including 16% VAT as of November 30, or a 7-month low, according to Mysteel’s data.
The average rebar sales margin among 91 blast-furnaces steel makers decreased by Yuan 709/t on month to Yuan 320/t as of November 30, while that for hot-rolled coils falling into an average loss of Yuan 35/t, down by Yuan 504/t on month, Mysteel’s data showed.
Domestic steel sales slumped too when most buyers acted extra cautious on noting the non-stop falls in domestic steel prices, and the nationwide trading volume of long steels comprising rebar, wire rod and bar-in-coil among 237 traders contracted 20.4% on month to 164,098 tonnes/day on average for November, or a new low since March when the average daily trade volume was read at 160,326 t/d, according to Mysteel’s database.
Written by Venus Wang, wangyi@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com
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