SHANGHAI For Chinas
steelmakers, 2012 was another challenging, volatile
andfor manyloss-making year.
With domestic prices witnessing
sharp ups and downs, many Chinese steel companies were in the
red in 2012. Spot prices for hot-rolled coil dropped to about
3,100 yuan ($498) per tonne from 4,300 yuan ($690) per tonne
over the first three quarters, a decrease of nearly 28
Steel prices bottomed out in
early September, largely due to Beijings efforts to
stabilize the economy by approving more construction projects
but also due to the third round of quantitative easing in the
United States and a reduction in steel output by Chinese
steelmakers. As a result, hot-rolled coil prices returned to a
range of 4,000 to 4,100 yuan ($642 to $658) per tonne by the
end of the year.
That extreme volatility produced a lot of problems both for
mills and traders, and a number of major steel companies are
expected to log financial losses when they report their 2012
A version of this article was first published by AMM sister
publication Steel First.