Beijing Times quoted the China Iron and Steel Association said twenty five out of a total of 77 large and medium-sized steelmakers incurred total losses of CNY 2.13 billion in October while the average profit margin of the steel industry fell to 0.47% on high iron ore prices and falling steel prices.

The total profits earned by the steel industry in October fell 82.6%MoM to CNY 1.375 billion.

Mr Luo Binsheng CISA vice chairman said the losses were due primarily to oversupply in the steel market, the fall in steel prices and increases in iron ore prices.

He said that the additional expenses were 1.84 times the total profit of CNY 84.17 billion earned by steelmakers during the first 10 months.

During the first 10 months, the average CIF price of iron ore imports hit USD 166.66 per ton up 34.33%YoY and the import volume increased 10.86% to 557.93 million tonnes.

The additional expenses incurred through the rising iron ore prices totalled USD 23.76 billion or CNY 154.45 billion.

(Sourced from Beijing Times)