finance2u schreef op 29 maart 2019 22:13:
China's steel sector posted a 59% YoY fall in gross profits to CNY 20.16 (USD 3 billion) in January and February, as steel demand and prices did not recover significantly from a sharp drop in November, eventhough mills posted a 6.2% increase in revenues to CNY 963.39. Steel mills were posting profits of above CNY 1,000 for most of 2018, before a price crash in November brought profit margins down to CNY 100-500. Several mills have been operating barely at break-even or making losses since November. Rebar profits for blast furnace-based steel mills were currently around CNY 400, while electric arc furnace mills were making CNY 150-200 in profits.
Market participants expect construction demand to pick up pace in April, which may lift steel profits and prices. Steel mills are widely expected to post lower profits in 2019 compared with last year, but the industry is highly unlikely to turn unprofitable as the real estate and infrastructure sectors are expected to grow at a healthy pace.