Futu News reported on July 31 that, affected by the release of profit warning news, iron goods started low today, and have now plummeted 18.36% to HK$0.169 million, with provisional transactions of HK$157.789 million, with an updated total market value of HK$1,199 billion.

Iron Goods issued an announcement this morning (31st). It is expected that in the first half of 2019, there will be a higher net loss attributable to company owners. The announcement said that although the Group's overall operating performance was in line with expectations, the EBITDA forecast generated by K&S in the first half of 2019 was higher than the same period last year, and depreciation expenses were higher due to asset impairment returns at the end of 2018. Financial expenses increased due to higher interest rates associated with loans from Gazprombank and Petropavlovsk.

In the second quarter of 2019, K&S sales and production increased by 35.0% and 34.2% respectively over the previous quarter; the average production capacity in the second quarter of 2019 was about 88%. The production capacity in June was 93%, setting a monthly production record. The production capacity in July was about 88%; the production capacity increase plan is expected to achieve full production capacity in the later period of 2019.

It is worth noting that due to the imbalance in the fundamentals of supply and demand, iron ore futures rose higher this year. Major futures once rose as high as 80%, at 924.5 yuan, while iron goods also skyrocketed. At one point during the year, the increase was as high as 408%, showing that “the cyclical industry did not open for three years, but opened for three years.”