Liaoning Province-based Chinese steelmaker Angang Steel Co. (Ansteel) has stated that its net profit for 2019 is expected to total RMB 1.6 billion ($0.23 billion), down 79.88 percent year on year.
Raw material prices in China have increased visibly, while most major steel mills have not been able to reflect this surge in steel quotations. Ansteel stated that the slowdown in economic growth dragged down demand for steel, resulting in low finished steel prices, thereby leading to the year-on-year decline in its net profit. Meanwhile, iron ore and coal prices indicated significant year-on-year rises, reducing the profitability of steelmakers.