China's steel sector profits rise in October
Released in time:11/28/2018 11:59:08 PM Browse The Times:281

China's steel sector posted a 6.5pc gain in gross profits during October on the back of higher prices of construction steel products.

October profits for the steel industry, including primary and secondary producers, was 42bn yuan ($6.05bn) compared with Yn39.34bn in September, according to calculations based on national bureau of statistics data.

China's steel sector profits increased by 63.7pc to Yn355.28bn during January-October.

China's steel sector is on course to finish its third successive year of a sharp gain in profits, a streak which began in 2016. The previous year was among the worst years for China's steel sector profitability but since 2015 a robust real estate market and aggressive steel capacity reductions have lifted profit margins.

Profits in November are expected to take a hit amid sharp fall in prices of long and flat products because of a seasonal winter slowdown and lower than expected cuts in output amid flexible winter steel output restrictions. Beijing allowed cities to set their own steel output limits during the winter months, unlike the 50pc November-March blast furnace output cut imposed across 28 key steel-producing cities in 2017.

Domestic steel prices have fallen over 20pc in the past month with several mills operating at breakeven or even making losses.

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