On October 28, Hubei Province-based Chinese steelmaker Wuhan Iron and Steel Co. (WISCO) announced a net profit for the third quarter of this year of RMB 276 million ($41.26 million), down 49.45 percent year on year, while its operating revenue for the period came to RMB 18.487 billion ($2.76 billion), compared to RMB 13.87 billion ($2.07 billion) in the third quarter of 2009. In the third quarter this year, the company's operating costs amounted to RMB 18.164 billion ($2.7 billion), compared to RMB 13.381 billion ($2 billion) recorded in the same period of 2009.
On the other hand, in the first three quarters of 2010, WISCO recorded a net profit of RMB 1.24 billion ($0.185 billion), up 17.79 percent compared to RMB 1.053 billion ($0.157 billion) in the corresponding period of 2009. In January-September this year, WISCO's operating revenues amounted to RMB 54.435 billion ($8.137 billion), compared to RMB 37.396 billion ($5.59 billion) in the same period of 2009.
Insiders consider that the decline in WISCO's net profit in the third quarter was the result of its reduced steel product prices. WISCO reduced the ex-mill prices of its products both in July and August. The producer's average ex-mill prices in the third quarter for hot rolled sheet (HRS) decreased by RMB 300/mt ($44.8/mt), while its average cold rolled sheet (CRS) ex-mill prices dropped by RMB 650/mt ($97/mt), both compared to the second quarter.