China's medium, large steel makers post RMB 3.31-bln loss in Q1

RMB 3.31 billion in the first quarter of 2009, including RMB 1.51 billion in the Jan-Feb period and RMB 1.8 billion in March, according to statistics from the China Iron and Steel Association (CISA).

In the first three months of this year, 34% of the 72 medium- and large-scale domestic steel makers posted losses, while these 72 enterprises realized a net profit of RMB 47.16 billion in the same period of last year.

Luo Bingsheng, vice-chairman of the CISA, attributed the loss to the oversupply of steel in the market.

During the first three months, domestic crude steel production reached 124.74 million tons, 1.74 million tons more than that of a year earlier. The total output of steel products was still growing month on month, while output of steel sheet products decreased 7.68% from a year earlier.

Furthermore, steel export declined 50% year on year to 5.14 million tons in the first quarter, which indirectly caused the oversupply.