October 12, 2008

China 6 listed steelmakers report average net growth of 76.86% in 2007

It is reported that by March 17th 2008 6 listed steelmakers issued their annual reports for 2007, with weighted retained profits growth rate disclosed at 76.86%.

All of the six steelmakers Daye Special Steel Co, Linyuan Steel, Anyang Steel, Xining Special Steel, Jinan Steel and Nanjing Steel, noted that rising steel price brought then a big growth in operating revenues while escalating raw material and fuel prices also increased the cost pressure.

Of the six, Xining Special Steel is forecast to make highest profit growth in 2008, of 100%, followed by Anyang Steel, of 50%, and then Daye Special Steel, of 30%. Product mix optimization and adjustment are regarded the key to their growths, aside from owing resources.

According to the reports, Nanjing Steel, Anyang Steel and Daye Special Steel respectively reported 163.96%, 77.74% and 1.86% YoY growth in performances. The six mills had total market value of CNY 77 billion.

The six mills' sales gross profitability fell MoM in 2007. Of the products, billet and slab and construction steel witnessed declined profitability while the flats and special steel products enjoyed rises.

(Sourced from MySteel.net)