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Steel prices jumped a flash in the pan


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Steel prices jumped a flash in the pan

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Inearlymarchasurgeofsteelpricesforsteelmillstoseerecoveryhopes,however,depthofexperiencelossofindustryinthefirstquartertoturnroundisstilltough,"hesaid. Accordingtocisa,inJanuary99largeandmedium-sizedi

In early march a surge of steel prices for steel mills to see recovery hopes, however, depth of experience loss of industry in the first quarter to turnround is still tough, "he said.
According to cisa, in January 99 large and medium-sized iron and steel enterprises in 47 enterprises loss, loss 6.719 billion yuan worth of all corporate profits, losses from last year to expand the 6.426 billion yuan, sales fell 22.88% year on year.
"Loss has been basically determined in January and February corporate orders and prices have been locked in before, so also is in the majority with a deficit in February." Shanghai steel group, chief analyst at jian-hua wang told reporters that as the steel prices in March, the high point in time, the enterprise can have profit.
Ore price soaring profit margins
This round of inflation dropped to let companies by surprise. March 7 solstice 8, rebar spot prices crazy pulled up nearly 20%. 16, Shanghai rebar prices have dropped to 2290 yuan/ton, but compared to the surge, still about 7% gain.
Prices are volatile, enterprises are difficult to lock in profits. "This round of price fluctuations is faster, some steel mills in pricing is not big, steel mills have not really benefit from the boom." Nishimoto Shinkansen, a senior analyst at Qiu Yue reporters in pairs, beginning in March, good steel mills will turnround.
Fired by black tie in this round of big rallies, or have far more than steel, ore to steel mills profit by erosion.
Debt credit in 15, a report was studied in steel prices and iron ore prices impact on corporate profits. Its steel industry team, senior economist at Liu Yana analysis to the reporter, according to a rough calculation, billet and variable cost price is in 800 yuan/tons ShiGang companies will break even. Among them, the variable costs include the price of iron ore and coke, respectively about 35% and 20% of the cost of crude steel production.
Debt in the credit, in the first quarter of 2016 large and medium-sized steel mills are still losses, loss of range of 8 billion yuan to 15 billion yuan, compared with loss-mitigation sharply in the fourth quarter of last year, but still in the first quarter of 2015 compared to the losses.
On the other hand, the pressure from capital also in inhibition of enterprises and production growth. From the research, some iron and steel enterprises the status of the existing loan interest rates to rise, there is a certain construction and production pressure.