Chinese firms spent US$16.017 billion more on iron imports in the first six months of 2011 than they did a year before.
China's steel enterprises pay more for iron ore
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China steel makers have taken a hit this year as rising international iron ore prices have them shelling out more for the prized metal. Chinese firms spent US$16.017 billion more on iron imports in the first six months of 2011 than they did a year before, Economic Information reported on Monday. 160.17 The average price of imported ore reached a record high of US$160.89 per ton in the first half of this year, up 42.41 percent from a year before. 160 .89 42.41% Meanwhile, China maintained its spot as the world's biggest consumer of the rocks, importing 334.25 million tons, 25.18 million tons more than last year, according to Chinese customs statistics. 33425 2518 The average profit margin of Chinese steel enterprises was only 3.14 percent, much lower than the average industrial firm in China and even below the interest rate on bank deposits, statistics released by the China Iron & Steel Association show. 3.14% 6.2% 3.25% "Chinese steel companies are facing more difficulties doing business due to price hikes of iron ore. Companies are reporting tiny profits," said Zhu Jimin, head of China Iron & Steel Association and chairman of Shougang Group.China's business press carried the story above on Monday.
