China Iron & Steel Association said that its 71 large and medium sized steel members have posted a combined loss of CNY 12.8 billion in November the second time monthly loss since it sinks into red last month.
As per report, 48 mills or 67.7% of the total 71 have reported total monthly loss of over CNY 14 billion.
Analysts said that the profit loss is set to spread into December since losses for stocks devaluation will be fully reflected in the month. Different from that in October two cock steel mills also suffered red this time with accumulative loss of more than CNY 2 billion.
It said that Chinese steel companies can hardly shake off the loss in December due to the huge losses in stocks devaluation even though spot ore prices have clawed back some 20% losses which can reduce the devaluation to some extent.
Chinese steel firms have posted their firstly monthly loss of CNY 5.84 billion in October in 6 years, of which 42 mills or 59.15% among the total 71 have reported losses with combined deficit up to CNY 7.78 billion.