Angang sees return to profit
By Fu Chenghao |
August 19, 2009, Wednesday
|
Print Edition
Print Edition
AFTER posting a lower loss in the first half of the year, Angang Steel Co said it will return to profit in the current quarter as demand has rebounded.
Net profit at China's second-largest steel mill by market value could be between 1.56 billion yuan (US$228.4 million) and 5.69 billion yuan for the three months ending September 30, according to calculations based on Angang's nine-month earnings forecast released on Monday.
The Anshan, Liaoning Province-based company posted a loss of 1.56 billion yuan in the first six months as the global financial crisis took a bite out of steel prices. It had forecast a first-half loss of as much as 2.99 billion yuan.
China's steel production rose to a record last month as a government stimulus package spurred demand from construction sector and car makers.
Steel prices in China have nearly doubled over the past three months, but they have fallen by about 20 percent over the past 10 days alone, Australian miner Fortescue Metals Group Ltd said on Monday.
Analysts remained positive over China's steel sector, saying the correction in steel prices could be over in the short term.
"Spot steel prices have been falling sharply, and a further 10 percent fall is possible," Bank of America Merrill Lynch analyst Colin Liang wrote in a note yesterday. "However, we have seen users starting to restock, and demand is still recovering."
Net profit at China's second-largest steel mill by market value could be between 1.56 billion yuan (US$228.4 million) and 5.69 billion yuan for the three months ending September 30, according to calculations based on Angang's nine-month earnings forecast released on Monday.
The Anshan, Liaoning Province-based company posted a loss of 1.56 billion yuan in the first six months as the global financial crisis took a bite out of steel prices. It had forecast a first-half loss of as much as 2.99 billion yuan.
China's steel production rose to a record last month as a government stimulus package spurred demand from construction sector and car makers.
Steel prices in China have nearly doubled over the past three months, but they have fallen by about 20 percent over the past 10 days alone, Australian miner Fortescue Metals Group Ltd said on Monday.
Analysts remained positive over China's steel sector, saying the correction in steel prices could be over in the short term.
"Spot steel prices have been falling sharply, and a further 10 percent fall is possible," Bank of America Merrill Lynch analyst Colin Liang wrote in a note yesterday. "However, we have seen users starting to restock, and demand is still recovering."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
