HomeProduct Complimentary download Hebei steel industry Q1 profit triples on yr

Hebei steel industry Q1 profit triples on yr

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Publish time: 4th May, 2016      Source: www.cnchemicals.com
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Hebei province, a major steel production base in China, posted a year-on-year increase of 215.8% in profit of its steel industry to 4.07 billion yuan ($626.4 million) in the first quarter, thanks to rising steel prices at domestic market, showed data from the provincial Metallurgical Industry Association.The revenue of core businesses of the province’s steel industry stood at 233.6 billion yuan during the same period, sliding 3.15% from a year ago.The steel market gained upward strength mainly from the eased oversupply as well as the national favorable policies, analysts said.In the first quarter, the province’s output of iron pig and crude steel amounted to 45.71 million and 48.89 million tonnes, falling 0.67% and 0.84% on year, respectively; that of steel products climbed 4.87% on year to 61.91 million tonnes.At present, a total of over 60 blast furnaces have resumed production, mainly spurred by tempting profit, contributing to a 5% monthly rise in China’s daily output of crude steel to 2.16 million tonnes since mid-March.Production recovery, however, may intensify price competition among steel mills, bringing the steel market back into the previously bad situation.The province has cut iron and steel capacity of 33.91 million and 41.06 million tonnes, respectively, during 2010-2015 period. The de-capacity target for 2016 is set at 10 million and 8 million tonnes for iron and steel, respectively, and the province’s steel capacity is expected to be within 200 million tonnes during the 13th "Five-Year Plan".