On January 29, Liaoning Province-based Chinese steelmaker Benxi Iron and Steel (Group) Co. (Bengang) announced an estimated net profit of RMB 100-150 million ($16-24 million) for 2012, down by 81.15-87.43 percent year on year, with earnings per share of RMB 0.03-0.05 ($0.005-0.008). In 2011, Bengang recorded a net profit of RMB 795.8 million ($127.5 million), with earnings per share of RMB 0.25 ($0.04).
Bengang stated that the significant drop in its net profit in 2012 resulted from the sluggishness of the steel market, strong declines in steel prices and higher costs of raw materials, even though the company tried hard to reduce costs.