This hardly seems like much of a surprise. It’s hard to consider absorbing a 70% increase in iron ore cost and not having it hurt you.
Costs for China’s large and medium-size iron and steel manufacturers rose by more than 250 billion yuan ($36.5 billion), or 57.57 percent, in the first half, according to the China Iron and Steel Association (CISA).
The cost hike was due to the soaring prices of materials and fuel, said the CISA, noting the country’s iron and steel companies were facing tremendous pressure this year.
The soaring costs resulted in profit falls, with the half-year rate of return on sales for large and medium-size iron and steel suppliers at 7.61 percent, 0.95 percentage points lower than the same period last year.