Wuhan Steel reports first half results

Wuhan Steel reports first half results

Hebei province based Wuhan Iron & Steel Company (Wuhan Steel), China's third-largest steelmaker, reported that its net earnings rose 346 percent year on year in the first six months due to the profits obtained from assets bought from its parent company, Wuhan Steel Group. Wuhan Steel's profits reached RMB 3.15 billion ($389 million) in the first six months. The company expects its earnings to more than double by the end of the third quarter. The company's net earnings in the first quarter alone were RMB 2.02 billion ($250 million). Wuhan Steel took over three smelters, two production lines and some miscellaneous assets from its parent Wuhan Steel Group in June 2004. With the purchases, the steelmaker's production capacity increased to 10 million tons per annum. Nevertheless, the company may be forced to cut prices in September, the second time in two months, due to the sluggish demand in the domestic market. Wuhan Steel mainly produces various kinds of hot and cold rolled plates/sheets.