Layoffs Begin in China Steel Sector as Profits Quadruple

34 listed steel companies (iron and steel products as the main business), of these 13 have reported first-half results, in addition to two Valin Iron & Steel and SGIS not yet profitable, profitable enterprises reached 11.

Compared to the dismal 2015, the first half of 2016, China's steel industry staged a legendary counter-attack. 13 According to the company announcement, Yuying largest Maanshan Iron & Steel, the first half of 2016 earnings guidance of about 4.5 billion, while in Anhui Province this year's largest steel company or the huge loss of 4.804 billion yuan, Jiuquan Hongxing Yuying 227 million this year, Gansu Province's largest steel company losses a staggering 7.43 billion. Outside Maanshan Steel, Jiuquan Hongxing, three steel Min light TISCO respectively Yuying 304 million yuan and 302 million yuan, the two listed companies loss of 929 million yuan and 3.711 billion yuan respectively in 2015.

In addition, according to the company internal meetings, reogranizing Baosteel and Wuhan Iron and Steel in the first half profit is expected to 3.91 billion yuan and 703 million yuan.

...According to industry observation, ongoing high and volatile prices, perhaps in the short term will continue to "fly for a while." However, with regard to the long-term prospects, the majority view is still cautious, including business itself. For businesses, bitter experience has not gone away, survival is still not open around the topic. The capacity to accelerate the pace of reform, the increase, which is in the industry's most important players - who state-owned enterprises, but the most obvious.
As for cutting staff:
In a large number of state-owned steel enterprises, Jiuquan is not the only company seeking to survive drastic reform with a hatchet. Wuhan Iron and Steel "burden" of data equally impressive: the first half, a total of 3100 people given early reitrement, from the headquarters offices 50 is adjusted to 33, management staff from 833 people reduced to 346 people... Wuhan Iron and Steel Group in accordance with previous plans, the staff layoffs will continue.

EO: 怪象!钢企半年利润飙涨4.27倍 上市公司却纷纷开始裁员

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