The China Iron and Steel Association (CISA) said Thursday that the government should not relax policies on iron and steel industry, and some less competitive enterprises should exit the sector, caijing.com.cn reported.
Wang Xiaoqi, vice president of the CISA, said Thursday at a forum that the current situation provides an opportunity to the iron and steel industry to speed up structural adjustment and transformation.
The losses of iron and steel industry mounted in July to 1.9 billion yuan ($299.18 million), with the losses swelling by 1.7 billion yuan compared to June, according to the CISA.
The steel sector realized profit of 1.68 yuan per ton in the first seven months of the year, compared with 118 yuan in the same period last year, dropping nearly 70 times.
The 17 listed iron and steel enterprises who have released their half-year financial reports suffered losses of 1.12 billion yuan, a sharp drop from last year's profit of 4.64 billion yuan. Wuhan Iron & Steel reported year-on-year 11.54 percent drop in revenue in the first half year and 88.99 percent drop in net profit.
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