Due to the decline of steel prices in the first three quarters of 2009, and also due to the increased price of raw materials in the fourth quarter, Shanghai-based Chinese steel giant Baosteel registered a 9.95 percent decline year on year in its net profit in 2009, to RMB 5.816 billion ($851.86 million).
According to its newly-released annual financial report for 2009, Baosteel registered an operating revenue of RMB 148.326 billion ($21.73 billion) for the year in question, down 25.96 percent compared with the previous year.
Baosteel attributed the decrease in its 2009 net profit to the direct impact of the financial crisis on the steel market, which led directly to a significant decrease in steel sales prices. Meanwhile, owing to the sharp shrinkage of market demand, and also due to other factors such as trade protectionism and fluctuations in foreign currencies, China's steel export volume declined greatly, while its imports increased.