Chinese steelmakers’ March profits turn better
It’s reported that the Chinese steelmakers’ sales profits turned better in March due to higher demand and lower iron ore imports.
According to statistics of China’s customs, the country imported 62.87 million tons of iron ore in March, decreasing by 3.2% from a month earlier while increasing by 5.7% year on year. The average import prices of iron ore remained flat at US$138.2/ton.
It’s analyzed that the decreased iron ore imports were caused by lower capacity utilization rate of Chinese steel mills in March.
In fact, the Chinese steelmakers suffered from the profit losses in the first two months of this year and they’ve become more cautious of purchasing raw materials.
However, since the market demand has been recovering from the second half of March, the steel inventory has been decreasing gradually, helping the Chinese steelmakers return to gain.
For the prospect, analysts predicted that the Chinese steelmakers might have better profits in April, driven by rebounding demand from downstream end users.
News Date 12 Apr 2012 11:04:35 reported by Ruth Wang