Chongqing-based Chinese steel producer Chongqing Iron and Steel Co. (Chongqing Steel) has announced that in the first half of the current year it achieved an operating revenue of RMB 11.48 billion ($1.6 billion), up 3.52 percent year on year, and a net profit of RMB 616 million ($88 million), decreasing by 19.19 percent year on year. The company stated that the declines in selling prices of its finished steel and rises in raw material prices, including iron ore, coal, alloy and scrap, contributed to the declines in its net profit in the given period.
At the same time, in the first half of the year, Chongqing Steel produced 2.9842 million mt of pig iron, 3.2506 million mt of crude steel and 3.0972 million mt of finished steel, up 7.2 percent, 4.2 percent and 4.4 percent, respectively, year on year.
The financial performance of the producer may improve in the second half as iron ore prices have moved down and will continue to soften to some extent, which will ease the strong pressure on steelmaker, as stated by market insiders.