China Baosteel's Q3 net profit plunges on faltering steel prices
Steel

China Baosteel's Q3 net profit plunges on faltering steel prices

China's biggest listed steelmaker, Baoshan Iron & Steel, reported a nearly 65% plunge in its third-quarter net profit, undermined by a fall in steel prices. The company, known as Baosteel, said in a filing to the Shanghai Stock Exchange that it made net profit of $188 million, down from 3.8 billion yuan in the year-ago period. Baosteel is a subsidiary of state-owned China Baowu Steel Group, the world's largest steelmaker by output. Net profit over the first nine months of the year fell 29.56% from the same period a year before to 5.88 billion yuan, it said. Disappointing demand for steel amid a persistent property downturn and weaker-than-expected consumption from the infrastructure sector had hammered steel prices in the third quarter, squeezing steelmakers' profit margins, analysts said. In the first nine months of the year, the average price of imported iron ore dipped 0.8% while steel prices slid 7.67%, the state-backed China Iron and Steel Association said last week. Losses among Chinese steelmakers totalled 34.1 billion yuan from January to September, official data showed. Demand, however, showed signs of stabilising after a raft of stimulus measures unveiled in late September boosted sentiment, Baosteel said. Baosteel produced 12.56 million metric tons of pig iron and 13.3 million tons of steel in the July-September quarter, bringing the total in the first nine months of the year to 36.68 million tons and 39.61 million tons, respectively. Export orders were 4.66 million tons in the first three quarters, it said. China made 768.48 million tons of crude steel in the first nine months of this year, down 3.6% year-on-year, official data showed.

China's biggest listed steelmaker, Baoshan Iron & Steel, reported a nearly 65% plunge in its third-quarter net profit, undermined by a fall in steel prices. The company, known as Baosteel, said in a filing to the Shanghai Stock Exchange that it made net profit of $188 million, down from 3.8 billion yuan in the year-ago period. Baosteel is a subsidiary of state-owned China Baowu Steel Group, the world's largest steelmaker by output. Net profit over the first nine months of the year fell 29.56% from the same period a year before to 5.88 billion yuan, it said. Disappointing demand for steel amid a persistent property downturn and weaker-than-expected consumption from the infrastructure sector had hammered steel prices in the third quarter, squeezing steelmakers' profit margins, analysts said. In the first nine months of the year, the average price of imported iron ore dipped 0.8% while steel prices slid 7.67%, the state-backed China Iron and Steel Association said last week. Losses among Chinese steelmakers totalled 34.1 billion yuan from January to September, official data showed. Demand, however, showed signs of stabilising after a raft of stimulus measures unveiled in late September boosted sentiment, Baosteel said. Baosteel produced 12.56 million metric tons of pig iron and 13.3 million tons of steel in the July-September quarter, bringing the total in the first nine months of the year to 36.68 million tons and 39.61 million tons, respectively. Export orders were 4.66 million tons in the first three quarters, it said. China made 768.48 million tons of crude steel in the first nine months of this year, down 3.6% year-on-year, official data showed.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?