China-based stainless steel manufacturer Jiangsu Wujin Stainless says stainless steel industry faced several challenges in H1 which were mostly in Q1 period due to stainless steel consumption and production falling in the event of COVID-19. Net profit in H1 was down 10pc to CNY134mn ($19.25mn).
The company gradually resuming production activities and sales operations and the second quarter improved over the first, but H1 was affected by Q1’s poor performance. In H1, operating income stood at CNY1.16bn, up 1.36pc from the prior year. Operating cost was at 1.05bn yuan, up 2.04pc from the previous year. Net profit was down 10pc to CNY134mn .
China’s SS production
China’s stainless steel output in H1 was 13.96mn mt, down 2.74pc from the prior year. Stainless steel consumption fell 2.27pc to 11.65mn in H1 from the earlier fiscal. Imports of stainless steel fell 6.41pc to 636,400mt in H1 from the previous year. Export of stainless steel was at 1.61mn mt, down 5pc from the prior year.
The country faced pandemic pressures in Q1, with production and sales improving gradually in Q2. The industry has shrugged off impacts of the epidemic and production, sales have almost turned to normal in April-June period with stable overall operations.
In H1, the company’s 35,000mt ultra-long stainless steel pipe project progressed steadily, said the company. In H1, industrial pipes were widely distributed to oil and gas, electric power, chemical industry, shipbuilding and other sectors.
($1=CNY6.9)