Profits at China’s steel mills plunge 96% in first half

Beijing: Profits at China's steel mills dropped 96 percent in the first half from a year earlier, according to the China Iron and Steel Association (CISA).

Profits declined to 2.385 billion yuan in the first half while financing costs for large Chinese steel mills rose 37 percent, Zhang Changfu, CISA's vice chairman, told reporters in Beijing on Tuesday.

Iron ore stocks now stand at almost 100 million tonnes, while steel products inventories at major mills rose to 12.45 million tonnes as of July 20 — up 46 percent from the start of the year and 36 percent higher than a year earlier.

CISA has appealed to the government to restore a value-added tax rebate on some high-end steel products purchased from domestic steel mills by plants that usually rely on overseas suppliers.  [31/07/12]

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