China industrial profits tumble 18% in April as demand sputters

Posted on:
Key Points

Profits at China's industrial firms slumped in the first four months of 2023, official data showed on Saturday, as companies continued to struggle with margin pressures and soft demand amid a faltering economic recovery...

Profits fell 20.6% in January-April from a year earlier, compared with a 21.4% decline in the first three months, according to data from the National Bureau of Statistics (NBS)...

In April alone, industrial firms posted a 18.2% drop in profit year-on-year, according to the NBS, which only occasionally gives monthly figures..

"Overall, today's data shows that industrial enterprises, especially private and equity-owned enterprises, continue to be affected by a combination of unfavourable factors such as the base effect, short-term pressure on the economic recovery and the downward trend of PPI (producer prices)," said Bruce Pang, chief economist at Jones Lang Lasalle...

"There is still some pressure felt in May due to the difference between the purchase and sales prices, with steel prices falling in the month because of the slower-than-expected demand recovery," Baosteel, a subsidiary of the world's largest steelmaker-China Baowu Steel Group, said in an investor interactive platform on May 22...

You might be interested in

Base metal prices slip in last 12 months, supply to remain tight in CY23

04, Jun, 23

The prices of base metals lost their shine over the past year as supplies recovered after earlier disruptions and rising input costs and increased availability of raw materials also played their part.

China's consumer prices fall fastest in 3 years, factory-gate deflation deepens

09, Dec, 23

Consumer prices in China fell at the fastest clip in three years in November, while the world's second-largest economy saw factory-gate deflation deepening. China's consumer price index (CPI) dropped 0.5% both from a year earlier and from October; deeper than 0.1% fall estimated in a Reuters poll.

Oil prices down ahead of key economic data in China

15, Aug, 23

By Katya Golubkova TOKYO (Reuters) - Oil prices fell in early trade on Tuesday ahead of a slew of economic data from China which should provide clues on the outlook for any recovery in demand in the

Asia private equity deals set for worst Q1 since 2015

25, Mar, 24

International Business News: NEW DELHI: Private equity-backed mergers and acquisitions in Asia have started the year on a low note, experiencing the worst beginning in almost ten .

After a tough FY23, steel companies may see a gradual recovery

04, Apr, 23

An uptick in the demand environment is crucial to support prices of steel and thereby investor sentiments. For that, recovery in the Chinese economy is necessary as the country is a key market for metals.

China’s Industrial Profits Fall in 2023 as Weak Demand Persists

27, Jan, 24

Profits at large Chinese industrial companies declined in 2023, reflecting widespread corporate pain stemming from falling prices and weak demand both at home and overseas.

Oil prices ease as market awaits China data to gauge demand

07, Nov, 23

By Yuka Obayashi TOKYO (Reuters) - Oil prices eased on Tuesday, giving up most of the gains from the previous day, on concerns over weak demand in China, with investors focusing on trade data due

China's industrial profits extend gains as outlook improves

27, Nov, 23

International Business News: Profits at China's industrial firms extended gains for a third month in October, with a 2.7% YoY rise. This follows stronger-than-expected industrial

India's MRF reports five-fold jump in Q1 profit on cooling rubber prices, higher demand

03, Aug, 23

Indian tyremaker MRF (MRF.NS) reported a more-than-five-fold surge in first-quarter earnings on Thursday, beating estimates, as raw material prices eased and demand for higher-priced vehicles from consumers in urban areas held steady.

It has been a more challenging year than expected but H2 will be much better than H1, says Tata Steel MD T

25, Jul, 23

High energy prices in Europe have hit mid-sized and smaller companies and, as a result, steel consumption, according to TV Narendran, MD, Tata Steel. Inflation persists, with central banks increasing rates. However, while the first quarter saw Tata Steel's consolidated net profit fall by 92% YoY to INR634 crore, Narendran believes that Q2 will be better, with China seeming to recover on the back of auto sales and construction growth.