Mixed outlook forecast by steel firms
Updated: 2013-07-16 16:38
By WANG YING in Shanghai (chinadaily.com.cn)
Forecasts by China's major steel mills showed a mixed earnings outlook.
As of July 14, half of the 34 domestically listed steel makers had released their first-half earnings forecast.
Four predicted growing profits, three expected to turn to profit and three projected lower losses.
Six companies forecast losses at the same rate while one company predicted a first loss.
Angang Steel Co Ltd, the listed arm of Anshan Iron and Steel Group Corp, generated 702 million yuan ($114 million) in profits from January to June, in stark contrast with a 1.98 billion yuan loss booked for the same period last year.
Qiu Yuecheng, senior analyst at 96369.net, an e-commerce research platform, said the price slump for iron ore, a key raw material for producing steel, helped steel companies to achieve a broader income.
From January to May, the nation's large- and medium-sized steel companies registered 1.49 trillion yuan revenue in sales, up 0.74 percent year-on-year, and profits increased 33.99 percent to 2.8 billion yuan during the same period, according to date from the China Iron and Steel Association.