Chinese Steel Enterprises’ Gross Profits Down 47.46% in Oct From Sept

In October this year, the aggregate sales revenues of large and medium-sized steel enterprises in China amounted to RMB 309.144 billion ($50.74 billion), increasing by 0.96 percent month on month, while their aggregate gross profit totaled RMB 1.716 billion ($0.28 billion), down by 47.46 percent month on month, according to the data released by the China Iron and Steel Association (CISA). Accordingly, 18 of the 86 large and medium-sized domestic steel enterprises registered losses in the given month, four more than in the month of September this year, with their gross losses amounting to RMB 1.123 billion ($0.18 billion), up 19.60 percent month on month.

Meanwhile, in the January-October period of the current year, the total gross profits of large and medium-sized steel enterprises in China amounted to RMB 12.97 billion ($2.13 billion), compared to a total gross loss of RMB 5.223 billion in the same period last year, while the aggregate sales revenues of the enterprises in January-October this year totaled RMB 3.038275 trillion ($0.49 trillion), up 3.25 percent year on year. The gross profit to sales ratio of the enterprises in question in the January-October period this year was just 0.43 percent. 27 steel enterprises recorded gross losses in the first 10 months this year, six less than in the same period last year, while their aggregate gross losses amounted to RMB 12.169 billion ($1.99 billion), down 58.68 percent year on year.