[Ferro-Alloys.com]On the 2013 Domestic Iron Ore Industry Chain Summit Forum, Liu Xiaoliang, China Metallurgical Mining Enterprise Association Secretary, said since 2013, the medium and large iron ore enterprises profits decreased significantly, and meanwhile the investment on the industry declined.

 

According to the statistics, in the first half year of 2013, thetotal profit of the ferrous metal mining industry was RMB37.4billion, increasing by 4.5% compared with that of 2012, while the main business income margin was just 8.7%, for the first time lower than 10% in recent years. 

Besides, in the first half year of 2013, the total assets profit margin decreased to 4.42% from 22.22% of 2008; the sales margin declined to 18.54%, for the first time lower than 20% since 2006. Meanwhile the industry debt margin increased to 54.13% in the first half.

Liu Xiaoliang said, since 2013, the medium and large iron ore enterprises profit decreased much. Specifically, the sales revenue was RMB50.8billion, decreasing by 3.01% Y-O-Y, and the profit reduced by 39% to RMB4.37billion.

Compared with the large-scale state owned enterprises, the operation conditions of small and medium companies were a little better, as their fees of the management, tax, environment, safety and land use fees were lower.

In the same period, the large-scale mines capacity grew seriously, while the medium and small scale’s capacity increasing rate decreased much, which had just increasing by 5.5% in the first half, falling by 11.6% Y-O-Y. 

According to the statistics, the total iron ore output was 646million tons, grew by 7.5% year on year. Half of the expansion capacity came from the large mines with the capacity over 10million tons.

It was concerned that the investment to the mining industry was decreasing. During the first half year, the fixed assets investment of ferrous metal mining industry was RMB67.9billion, increasing by 7.77% Y-O-Y, while the increasing rate decreasing by 15.1%. The fixed assets from Jan. to Jul. increased by 9.4% to RMB78billion while the increasing rate decreased by 13.6%.

Liu expected that the iron ore output in China in 2013 would reach 1.41billion tons, growing by 7.5%, and the amount to 1.6billion tons and 1.44tons in 2015 and 2020 respectively.