Qi says hard times for steel to continue
December 8, 2008
For the buyers importing steel from China or having domestic demand to Chinese suppliers must keep on suppliers. Here is the latest news from Chinese supliers:
CHINA’S steel industry has entered a hard time after seven years of rapid expansion, and a turnaround is unlikely until the second quarter of next year, according to Qi Xiangdong, deputy secretary with China Iron and Steel Association.
Slackening demand at home and overseas has hit the country’s 71 major steel makers, said Qi.
Their profit totaled 126.8 billion yuan (US$18.5 billion) during the January-October period, down 0.93 percent from a year earlier.
Forty-two large or medium-sized steel companies posted losses in October. The combined losses reached 7.8 billion yuan.
The proactive fiscal policy and moderately loose monetary policy as well as the central government’s efforts to boost domestic demand and fixed asset investments would all have a positive impact on the development of the steel manufacturing industry in 2009, Qi said.
Last month, China unveiled an estimated 4-trillion-yuan stimulus package as part of its bid to offset adverse global economic conditions by boosting domestic demand.
The money is to be spent over the next two years to finance programs including low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several disasters, most notably the May 12 earthquake.
Although the elimination of export duties on 67 types of steel from December 1 would help cut the cost of exports, Qi expected steel exports to slump next year due to dwindling global demand.
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SinoSteels’ Overseas Takeover Accepted by Shareholders
September 19, 2008
WO major shareholders in Australian iron ore miner Midwest Corp have accepted takeover offers from Sinosteel Corp, giving the Chinese steel maker more than an 82 percent stake in the company.
Sinosteel said yesterday its offer had been accepted by Murchison Metals Ltd, which holds 9 percent of Midwest shares, and Armadale Offshore Inc with 12 percent.
Sinosteel wants access to Midwest’s Australian iron ore assets to serve China’s booming steel industry, which is dependent on global mining giants Rio Tinto Ltd and BHP Billiton Ltd. China’s mills have had to agree to price rises of up to 96 percent for iron ore from the two.
Sinosteel gained a controlling 50.97 percent stake in Midwest in July but is still pursuing full ownership.
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