According to Mr Zhu Jimin chairman of the China Iron and Steel Association , the aggregate net profit of CISA member companies in October and November 2011 amounted to CNY 1.4 billion and CNY 1.22 billion respectively, with more than one third of companies suffering losses. In addition, he said that the domestic steel industry should get ready for a harder year in 2012.

Mr Zhu stated that in January to November 2011 the CISA member companies saw an aggregate net profit of CNY 85.3 billion, 8.07% higher than the same period 2010. Although overall profits saw an increase, the average profit margin was only 2.55%.

The CISA official said that the main factors for the decrease in Chinese steelmakers' profits towards the end of last year were strong capacity utilization rates and the slowdown in downstream demand.

(Sourced from SteelOrbis)
Visit www.steelorbis.com for more