According to State owned Assets Supervision and Administration Commission of Shandong Provincial Government, Jigang under the control of Shandong Shangang Group cut the costs by CNY 0.56 billion YoY with the same range during H1 when the gap between Product Price Index and raw material index widened by 10% compared with the beginning of this year along with several factors leading to cost hikes and revenue reductions.

1. Pig iron and crude steel costs were controlled around CNY 3200 per tonne and CNY 85 per tonne respectively down by more than 3%, 4% and 4% since February, March and April respectively with the same range with the average decline rate at 3.22% on monthly basis during H1.

2. The capital management was strengthened to avoid risks with the financial expense of major areas down by CNY 10 million compared with last year despite the continual loan rate hikes announced by PBOC.

3. Zero based budget management was further improved especially for reparation fees which slide by over CNY 10 million on monthly basis compared with last year.

(Sourced from MySteel.net)
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