Baosteel announces profit fall for H1
As reported by Reuters, the Shanghai based Chinese steel producer Baoshan Iron and Steel Co. Ltd announced a decline of 15.7% net profit due to higher financing costs. According to the company executives the weakness of US Dollar played an important role in this situation as the company's foreign currency expenses on its Euro and yen debts rose to an equivalent Yuan 267 million, versus Yuan 141 million for last year's same period. Yet, the company remains optimistic for the full year performance.
BaoSteel is one of the biggest steelmakers in
China holding 13% of the Chinese market and is a producer of high quality products.
According to analysts, other firms such as
Angang New Steel Co Ltd and Maanshan Iron and Steel Co Ltd were likely to follow
Baosteel in reporting a weak first half and better second half.