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BaoSteel net profit in Q1 dips by 46% YoY on high iron ore price and weak auto steel demand in China

Steel News - Published on Thu, 25 Apr 2019

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Baoshan Iron and Steel Co Ltd has posted 45.7% YoY drop in net profit in January-March 2019 quarter at CNY 2.73 billion (USD 406 million), its first negative growth since 2015, as higher raw material prices and weak auto demand crimped profitability. Revenue in Q1 fell by 3.1% YoY to CNY 65.38 billion. Baosteel said “There was a booming demand for long products while a weak demand for flat products from the automotive industry. Meanwhile iron ore prices hiked 15.5% from the prior quarter, which narrowed profit margins.”

In the first three months of the year, Baosteel produced 11.22 million tonnes of iron and 11.84 million tonnes of steel.

It expects fundamentals in steel markets to improve in the second quarter as Beijing and Washington get closer to a trade deal, meanwhile China’s stimulus policy will offer support on demand side.

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Posted By : Sanju Moirangthem on Thu, 25 Apr 2019
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