The China Iron and Steel Association (CISA) has stated that in the January-September period of the current year the total gross profits of large and medium-sized steel enterprises in China totaled RMB 11.3 billion ($1.85 billion), with a gross profit to sales rate of only 0.41 percent, the lowest rate among Chinese industrial sectors. Nevertheless, this constitutes an increase compared to the gross profit to sales rate of 0.04 percent recorded for Chinese steelmakers in 2012.
At the end of October, the China Steel Price Index stood at 99.34 points, down 6.05 points year on year. Meanwhile, as of the same date, the average import iron ore price was recorded at $139.81/mt, up 22.34 percent year on year.
The CISA also stated that China's steel production is expected to decrease in the coming months, while adding that the price of iron ore is still the key element which determines steelmakers' profits.
