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Chinese steel industry to see serious concerns in Q4
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Friday, 02 Nov 2012

Xinhua reported that an industrial official has warned that the Chinese steel industry will be a big cause for concern in the fourth quarter due to shrinking demand and heavy losses.

The fears were outlined by Mr Huang Libin, an official from the Ministry of Industry and Information Technology, in an interview with China National Radio.

Mr Huang said that "The steel sector's performance has been bad since the beginning of the year. Their revenues are falling and demand remains weak."

He said that for the entire industry, the steel sector is now operating at a loss and struggling with problems of oversupply and a broader economic slowdown.

MIIT data showed 45% of the country's steel companies were suffering losses in the first nine months of 2012.

Figures from the National Development and Reform Commission revealed that 80 major steel firms reported a combined loss of CNY 5.53 billion in the January to September 2012 period.

According to the NDRC, Angang Steel Co Limited and five other steel companies were listed among the top 10 A share companies in terms of losses in the first three quarters.

NDRC data showed that China's crude steel output rose by 1.7% YoY in January to September 2012 period to reach 542.34 million tonnes, retreating 9 percentage points from the same period of 2011.

Source - Xinhua


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