Bloomberg reported that Angang Steel Co China second largest mill by market value profit may have peaked in the Q3 as overcapacity is leading to a price decline.
Angang Steel said the mill may post a profit of as much as CNY 1.17 billion or lose as much as CNY 330 million in the three months ending December 31st based on figures derived from a range of full year forecasts the company gave last night. Q3 net income was CNY 1.89 billion.
Mr Zhao Zhicheng a Shanghai based analyst with Essence Securities Co said “Angang profit would fall mainly because of lower average prices in the Q4 than the prior period. Angang may post a Q4 profit of almost CNY 1 billion.”
Angang fell 5.1% to HKD 15.34 in Hong Kong as of 12:29 PM local time. Its Shenzhen shares fell 3.6% to CNY 12.57.
