Gansu Province-based Chinese steel producer Hongxing Steel, a listed subsidiary of Gansu-based steelmaker Jiuquan Iron and Steel Group (JISCO), has announced that it expects to record a net profit of RMB 390 million ($61.04 million) in 2017, increasing by RMB 308 million compared to the previous year.
Hongxing Steel stated that the elimination of low-grade construction steel capacity and production cuts in the given year contributed to the rising trend of finished steel prices in China. Against this backdrop, the company improved its management and lowered its costs, which contributed to its better operating performance in 2017.