26 of China’s listed steelmakers that have released annual reports for 2012 together lost RMB 4.99bn (US$802.6M) last year compared to profits of RMB 16.37bn ($2.633bn) for 2011. Receivables of the 26 steelmakers rose 31.5% to RMB 28.91bn ($4.65bn) by April 21 this year.
Their provisions set aside for bad debt increased 37.5% to RMB 2.97bn ($477.7bn) in 2012.
China’s property cooling polices and high crude steel output weighed on the steel market. In 2013, China aims to eliminate 2.63Mt of outdated capacity in the iron making industry, far below last year’s 10Mt of ironmaking, 7.81Mt of steelmaking and 14.05Mt of cokemaking outdated capacity.
It is an arduous task to solve the country’s excess steel capacities. With the weather turning warmer, demand for steels from downstream sectors is expected to ramp up, say analysts.
Source: China Metals e-mail email@example.com