It is reported that hot on heels of Tangshan Steel, Shagang, Panzhihua Steel production cuts and overhaul, Rizhao Steel starts to take action.

Our reporter went to Lanshan steel mill of Rizhao Iron & Steel Co Ltd and steelworkers said that now their steel mill encountered some special situation, some workers have already on leave and went home, waiting for the notice to back.

It is known that from last year iron ore prices urge, the costs increased a lot and the recent real estate policy made domestic market weak and dull, steel industry is trapped in an embarrassed condition squashing from both downstream and upstream. Furthermore, the withdrawal of 48 steel products’ export rebates, devouring the little left profits. Under such environment, Rizhao Steel who is well profitable before also has to cut their production and dismiss steelworkers.

Some steelworkers indicated that now the steel mill performance is not good. Always run and then stop, stop and run again similar to the suitable in 2008 end and 2009 beginning. Insiders disclosed that now a part of steelworkers back home, which is confirmed by several steelworker still work here, today we still chat here, probably tomorrow we will on holiday and back home also.

A worker from power plant showed production cuts and workers dismissing is very rare in Rizhao Steel, he has worked here for more than 5 years and these years, Rizhao Steel profit ranking at top in steel industry, steelworker always very busy at the whole year without any rest time.

Rizhao Steel Group last worker-dismissing in large scale is in November, 2008. Under the attack of Global financial crisis, Rizhao Steel suffered CNY 0.4 billion loss in September 2008 up to CNY 0.6 billion in October. At that time, besides Rizhao Steel all the steel industry is at low ebb.

(Sourced from www.Mysteel.net)
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