Steel Industry Profit Margin Hits 3.55%
The profit margin of steel industry stayed at 3.55 percent, markedly lower than the average profit margin of six percent for raw material industries, reports yicai.com, citing Luo Tiejun, Deputy Director-General at Raw Material Ministry, a branch of the Ministry of Industry and Information Technology.
Luo predicts that both output and demand of iron and steel industry in 2011 will keep growing but at a lower rate, being volatile near the peak, and that output of crude steel will continue to grow but do so at a lower rate than this year.
For iron ore negotiation, Luo claimed that the long-term negotiation price for iron ore has been set quarterly since the first quarter in 2010, lowering the risks for both parties and easing speculation.
Shares of Baoshan Iron and Steel shed 1.2 percent to trade at 6.55 yuan per share at 14:15.