The hottest industry with falling ore prices is di

The falling ore price industry is difficult to turn losses, and steel enterprises will raise the tide of price reduction again

turning losses into profits by reducing raw material costs is still just an extravagant hope for most steel enterprises in China. The trapped market demand is weak, and the mainstream steel enterprises have to reduce the ex factory price of products one after another

the high cost of iron ore has always been a thorn in the hearts of domestic steel enterprises. The losses of the domestic steel industry are often attributed to the devouring of enterprise profits by the cost of raw materials such as iron ore

now, the data released by the General Administration of Customs of China shows that China's iron ore imports fell both in volume and price in June this year. It is reported that from August last year to yesterday (July 12), China's imported ore prices fell by 23%, larger than the decline in steel prices in the same period (17%)

nevertheless, under the background of the overall weakness of the steel industry and the continuous downturn of the steel market, the performance of domestic steel enterprises is still poor. In order to maintain the market, after several steel enterprises lowered the ex factory price of products in July, Baosteel was the first to reduce the ex factory electro-hydraulic servo spring fatigue testing machine of its mainstream products in August again yesterday, which is mainly used for the fatigue testing price of dynamic and static mechanical properties of materials and parts, or set off a new round of price reduction in the steel industry

on July 12, a data calculated by analysts showed that since the peak in August last year, the ton price of 62% of Indian fine iron ore in Rizhao Port has fallen from $199 to $153. "During this period, the price of imported ore fell by 23% and the price of steel fell by 17% She said

in recent years, imported iron ore has been a heavy burden that Chinese steel enterprises can't get rid of. With the continuous return of imported ore prices and the little smoke and non-toxic fall when burning, will Chinese steel enterprises get a breather

the answer is disappointing. According to the 2012 interim performance forecast released by domestic steel enterprises, at present, in addition to Angang Steel's disclosure of a loss in advance of nearly 2billion yuan, Shougang and Linggang also have a loss in advance of more than 200million yuan respectively. In addition, the performance of Shagang, WISCO and other steel enterprises in the first half of the year also fell by more than 50%

the data of China Steel Association shows that from January to May this year, the profits of steel production enterprises decreased by 56.9% compared with the same period last year. Among them, 80 national key large and medium-sized iron and steel enterprises achieved a profit of 2.533 billion yuan, a year-on-year decrease of 94.26%, and the loss of loss making enterprises was 11.749 billion yuan, with a loss surface of 32.5%

the maintenance expert who analyzed the battery impact tester said that under the market downturn, the sharp decline in steel prices has made many steel enterprises fall below the cost line, "the ore price is far from falling in place"

analysts said that the financing costs, financial costs and raw material costs of enterprises are still rising. "After the sharp decline in steel prices, the selling prices of steel are relatively low, and steel enterprises are inevitably at a loss."

after the overall reduction of the ex factory price in July, Baosteel once again reduced the ex factory price of mainstream products in August by 100 yuan to 500 yuan/ton on July 12, including 200 yuan/ton for hot-rolled steel, 260 yuan/ton for cold rolled steel, 100 yuan/ton for hot-dip galvanizing, 100 yuan/ton for aluminized zinc, and 260 yuan to 500 yuan/ton for silicon steel

according to the analysis, Baosteel lowered the ex factory price of products, which reflected from the side that the current demand for machinery, shipbuilding, automobile and other downstream industries of plate has not improved, and the steel plant is facing greater contract pressure

the industry expects that other steel mills will follow Baosteel's overall sharp reduction. Previously, after Baosteel significantly lowered the ex factory price in July, Angang Steel, WISCO, Shougang and others all lowered the ex factory price of products

analysts said that in July, the ex factory prices of steel mills were mainly adjusted lower, and the ex factory prices (listing) of mainstream steel mills in August will continue to be stable and weakening. It is expected that the prices of mainstream varieties will be reduced. While the prices are obviously reduced, some steel mills may continue to make up the difference to varying degrees