Zhejiang province-based Chinese steelmaker Hangzhou Iron & Steel Co., Ltd. announced that its net profit in the January-June period this year is estimated to amount to RMB 54 million ($7.6 million), decreasing by RMB 463 million ($65 million) or down 89.55 percent.
The company stated that in the first six months this year the demand from downstream users has been slack, resulting in a fluctuating trend in finished steel prices. Meanwhile, the import iron ore prices have been at relatively high level, exerting a pressure on the operating performance of steel industry, which shrank the company’s profitability.