Wuhan Steel issue social responsibility report for 2012, in which it is revealed that they intend to increase 2.29 million tonnes of new capacity this year against the backdrop of anaemic steel industry, feeling that new urbanization construction would add up steel consumption at home market.
Last year, the profit ratio of China steel industry merely comes to 0.04 percent, down to the last one amid the whole industries of China. In 2012, Wuhan Steel produced 36.42 million tonnes of crude steel, down 1.26 million tonnes year on year, including 410,000 tonnes of backward capacity and some unprofitable products. Meanwhile, their profit contracted CNY 4.7 billion to CNY 1.7 billion last year.
Mr Wu Peiyang deputy director of Business Finance Department of WISCO, expressed that new steel capacity to be increased this year primarily consists of high quality steel products, such as auto sheet, heavy rail, silicon steel, etc. Wuhan Steel has very confidence in the market in future in spite of current gloomy market situation.
Data show that the sales income revenue of WISCO in the first four months of this year amounted to CNY 68 billion, seeing a 2.6% year over year growth and its profit gained CNY 198 million to CNY 627 million at the same time.
More importantly, WISCO disclosed that their success in developing HiB silicon steel to replace imported resources have dragged down imported price by USD 2250 per tonne, saving CNY 2.5 billion for domestic transformer industry.
Wuhan Steel has developed over 1.2 million tonnes of new silicon steel products in recent three years.