China’s Baosteel net profit down in H1

Publish time: 31st August, 2011      Source: ChinaCCM
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According to report, Baoshan Iron and Steel Co., the second-largest steelmaker in China, said today that it posted a 36.9 percent down in first half net profit on rising raw material costs and lower demand.

Its first half year profit was RMB 5.08 billion (US$794 million), down from 8.05 billion one year ago.

However, its revenue increased 13.5 percent year-on-year to 111.15 billion but the profit was hurt by significant rise from iron ore and other raw materials costs.

Baosteel also sees that the demand for automobile, home appliance and machinery sectors may turn slow by global economy uncertainty after rapid growth these years. Steelmakers keep facing the profit down possibility in the second half.

It reported that its full year operating revenue will be RMB 217.9 billion from 210 billion and forecast that cost would be increased to 198.6 billion from 184.7 billion, bringing the full year production by 27.12 million tons from 27.47 million tons last year