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China's steel export slumped in Q1 2017: CISA

2017-04-27 10:02:13

Global Times

  Chinese steel exports in the first quarter of 2017 slumped 25 percent year-on-year to 20.73 million tons due to "international trade protection" and high domestic prices, an industry association said in a report on Wednesday.
 
  "The export motive of China's steel companies is weakened due to domestic price turning better", according to the report by the China Iron and Steel Industry Association (CISA).
 
  It also noted appropriate amount of China's steel export can shape a steady market share in the world, helping Chinese steel companies to enhance competitiveness by improving product quality and service.
 
  Overall, China's steel industry experienced sound growth in the first quarter despite the dive in exports and other challenges, the report said.
 
  Crude steel output in the first quarter grew 4.6 percent year-on-year with a daily average of 2.23 million tons, thanks to capacity cutting and a relatively low baseline in the previous year, according to the report.
 
  In March, domestic steelmakers produced an average of 2.32 million tons a day, the highest on record, it noted.
 
  The industry's economic efficiency improved, it noted. The combined sales revenue of its member companies in the first quarter jumped 40.16 percent year-on-year to 839.33 billion yuan ($121.92 billion). Together, the companies earned total combined profit of 23.28 billion yuan.
 
  However, domestic steelmakers remain highly leveraged. Although the asset liability ratio of the CISA's member companies fell to 69.97 percent at the end of March, it remained above the association's medium-term target of 60 percent.
 
  The CISA aims to get the ratio below 60 percent within three to five years. Also, the list of steel companies who will first conduct de-leveraging should be confirmed as soon as possible, the CISA said in a meeting with the China Banking Regulatory Commission on March 9.