Daily Management Review

Two steelmaking giants to be restructurized in China


Two major Chinese steel companies included in the country’s top-100 rating today announced their restructuring plans. Details have not been disclosed, reports "Xinhua". At the same time, the United States has introduced limited access regime to its market for Chinese steelmakers.

Companies Wuhan Iron and Steel and Baosteel based in Shanghai announced plans for "strategic restructuring" in two different statements. Above that, trading of their shares will be suspended starting from tomorrow.

The final restructuring plan, however, must obtain approval of the supervisory authorities, the statement said.

Baosteel is China's largest steel producer, and is the 5th largest in the world. Last year, the company’s total steel production amounted to 36.11 million tons.

Wuhan Iron and Steel is the sixth-largest steel company in China. Last year, the company announced that its production capacity was 26 million tons of steel.

About 100 companies - steelmakers in China have received the greatest loss in 2015 due to falling prices and demand for steel products.

At the same time, it became known that the US International Trade Commission on June 24 issued a final decision to impose anti-dumping and anti-subsidy US duties on stainless steel products imported from China, India, Italy and the Republic of Korea.

According to the decision adopted in May by the US Department of Commerce, manufacturers from China hinterland will be subject to anti-dumping duty at the rate of 209.97%, and anti-subsidy duties in the amount of 39.05% to 241.07%.

Meanwhile, profit of China's major industrial enterprises with annual income in excess of $ 3.1 million increased by 6.4% compared with the same period last year, and amounted to 2.38 trillion yuan ($ 356 billion) in January-May this year, said the Chinese State Statistical control on Monday.

Annual growth remained at around 6.4-6.5%, as well as on the results of January-April, whereas the I quarter of 2016 showed an increase of 7.4%.

"Since the beginning of this year, profits of China's industrial enterprises have been growing steadily, while their main occupation is the main source of profits for companies", - the agency’s report says. The highest growth has been observed among the producers of coal, steel and non-ferrous metals.

This reduction in recorded profits in the chemical and petrochemical industries, as well as among electronics manufacturers.

In May, the profit of enterprises amounted to 537.22 billion yuan ($ 80.33 billion), an increase in annual terms by 3.7%.

Profits of China's major industrial enterprises by the end of 2015 decreased by 2.3% to 6.36 trillion yuan ($ 966.7 billion). For large industrial enterprises, according to the GSM standard, are companies with annual revenues from the main activity of more than 20 billion yuan ($ 3.1 million). 

Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat