On June 29 Japan-China Steel Association organized the second quarter, the steel industry economic forum, representatives of steel companies, said the first half of the steel business efficiency gradually improved, significantly better than the fourth quarter, most of the enterprises to achieve profitability or reduced losses year on year.

According to CISA statistics, 1--5 months, China Steel Association member steel enterprises realized profits of 8.736 billion yuan, an increase of 7.38 times; a loss of 28.28%, down 13.13 percent; sales profit rate of 0.83%. From each month, the March to achieve profitability, profit 2.745 billion yuan; April and May, respectively, profit 8.383 billion yuan and 8.522 billion yuan.

In the first half, the whole industry more rational production control, which is one reason for the improvement in efficiency. According to statistics, in May, China Steel Association member steel companies pig iron, crude steel production was 53,249,500 tons, 54.486 million tons, 53.232 million tons, down 1.43%, respectively, down 0.68%, an increase of 0.3%. 1--5 May, member steel companies pig iron, crude steel production was 250.872 million tons, 254,717,500 tons, 246,715,500 tons, down 2.91%, respectively, 2.64%, 2.31%, a decline greater than the national average decline.

In addition, iron and steel enterprises steel prices show calm, take measures to stabilize prices, the vicious price reduction. Enterprises in inventory control is also more rational. Statistics show that the steels inventory levels were lower than the same period last year, and the year on year decline in basic 10% -20% overall at a low level. In early June, China Steel Association member steel enterprises steel stocks was 14.2 million tons, growth of 1.7%, down 12.93 percent.

In addition, from the first half corporate earnings situation, the income gap between enterprises have a tendency to expand, benefits clear differentiation. Iron and steel enterprises are still facing difficulties in financing, heavy historical burden, shunt placement of surplus staff under pressure and other issues. For the second half of the trend, delegates that to practice "of production capacity, production control, protection effective" approach to expand early CISA Council will propose a good grasp of the rhythm of production, strengthen market judged for steady profit, earnestly implement resolve the excess production capacity.