According to the information released by the Raw Materials Division of the Ministry of Industry and Information Technology, the overall operation of China's steel industry was stable in the first half of this year, but corporate profits continued to decline, and the steel industry will continue to operate inefficiently in the second half of the year. According to the data released by the Raw Materials Division, the steel industry realized a profit of 64 billion yuan from January to May, down 1.08% year-on-year. The sales profit rate continued to fall to 2.42% this year at the level of 7.26% in 2007, a new low in recent years. The Raw Materials Division pointed out that the outstanding problems in China's steel industry are the rapid release of steel production capacity, the sharp increase in iron ore import prices, and the continued narrowing of corporate profit margins. Subject to these problems, the steel production level in the second half of the year may be lower than that in the first half of the year. The export volume of steel products (4984, -6.00, -0.12%) will fall back. Imports will remain stable and remain the same as last year. It is expected that the annual steel output will reach 690 million to 700 million tons. Affected by this, iron ore prices will fluctuate slightly, steel prices will be difficult to grow, business operations will remain low-profit, and the steel industry will operate for a long time in high-yield, low-profit conditions.
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