Chinese steel companies reported profits in November for the first time in 4 months

Forbes reported that the Chinese economy is improving the nation’s leading steel companies reported profits in November for the first time in 4 months.

Statistics from the China Iron and Steel Association showed that the biggest steel firms there have returned to profitability but oversupply and a string of unprofitable months have made it a tough year for the industry. China steel companies are still in the red on the year as of November.

In a meeting Mr Wang Qinghai chairman of the association said that “In the first 11 months of 2012 the 80 major steel makers posted a loss of CNY 1.97 billion.” He said that “Chinese steel makers made meager profits in March, April and May and reported losses in the following months only improving their performance in the Q4 of 2012. Throughout 2012 Chinese steel makers’ capital chain continued to worsen as financing costs increased.”