Save
PrintChina's listed steel companies have widely posted sharp slide of performance or even loss in 2008 due mainly to marking to market of assets caused by sharp value depreciation of inventories.
Since the second half of last year, prices of steel products, coke and iron ore in China have plunged by a big margin, resulting in sharp value reduction of the steel makers' products and raw materials.
The annual net profit of Shanghai-listed Bayi Iron and Steel and Nangang Steel, for instance, dropped by over 70 percent in 2008. Such situation is also believed to have happened to other listed steel companies which are scheduled to release their 2008 annual reports before April 30.
In the 2008 report of Bayi Iron and Steel, the company incurred assets loss of 306 million yuan, a sharp comparison with a gain of 930,000 yuan in 2007.
Jinan Iron & Steel counted assets devaluation loss at 524 million yuan, 517 million yuan more than that in 2007.
Nangang Steel's net profit for 2008 totaled 120 million yuan, while its devaluation loss in the year exceeded 400 million yuan.
"The situation of assets devaluation will continue at least in the first half of this year as downstream demand remains soft and steel production is still in overcapacity," said analyst Zheng Dong with Guosen Securities.
Steel prices have kept slumping for six weeks running in China.
(www.chinamining.org)
Copyright © 2013 Ferro-Alloys.Com. All Rights Reserved. Without permission, any unit and individual shall not copy or reprint!
- [Editor:editor]
Daily News
Research
Magazine
Company Database
Customized Database
Conferences
Advertisement
Trade
Tell Us What You Think