Maanshan's profit up 0.5% in Q3

Maanshan’s profit up 0.5% in Q3

Chinese Maanshan Iron & Steel, a major producer of sections, wire rods, medium and thick plates announced third quarter figures. Net profit of the company increased 0.476 percent year on year to RMB 577 million ($71.3 million) in the third quarter ended on September 30, while the net profits of the nine months represented 6.75 percent decrease with 2.68 billion RMB ($331.18 million). In the third quarter, Maanshan produced 2.19 million metric tons of pig iron, 2.51 million metric tons of crude steel and 2.3 million metric tons of steel products; up 17.74 percent, 17.84 percent and 21.05 percent year on year respectively. The company sold 100 percent of its production. The operating income of the company increased 25.39 percent year on year to RMB 8.10 billion ($1 billion) through the nine months. The great increase in operating income facing the drop in profits marks the greatness of the squeeze on profit margins due to falling steel prices in China. In the third quarter, the gross profit margin obtained from operating income decreased 6.61 percentage points from the third quarter of 2004 to 12.11 percent. The company expects oversupply situation to last for a longer period and prices to continue decreasing in the fourth quarter, either.