The newly released statistics in Iron & Steel Industry in China worried all members in the field.

According to the statistics, members of China Iron & Steel Association have faced a deficit of 16.48 Billion CNY, which was 10.36 Billion CNY increased. The number of Iron & Steel enterprises running under deficit reached to 40, taking 39.6% of total members involved in the statistics. These enterprises running under deficit output 35.99% of the total steel production in the line with a total deficit value of 14.96 Billion CNY, 40.45% increased comparing with that of last year. By end of June, the daily output of crude steel by 150 enterprises who are members of CISA was 1.735 Million tons, 24.6 thousands tons decreased with a month-on-month decreasing rate of 1.4%. The daily output of pig iron by 150 enterprises involved was aprx. 1.70 Million tons, 47.8 thousand tons decreased with a rate of 2.74% month on month.

By far, the enterprises in Iron & Steel Industry have stuck in three difficulties—lowing price of steel, huge deficit of running and decreasing demand and supply of steel. All the three difficulties mentioned above brought tons of blocks to Iron & Steel enterprises on the way of development. Upgrading and transformation will be the only way for certain enterprises to break through the dilemma. However, insiders indicate that it needs at least one to two years to reverse the situation.