Chinese steelmaker Shandong Iron and Steel Company Ltd has said it expects to register a gross profit of RMB 293 million ($41 million) in the January-June period this year, compared to a gross loss of RMB 1.061 billion in the same period last year. At the same time, its net profit attributable to shareholders of the parent company is expected to amount to RMB 12.71 million ($1.8 million), compared to the net loss of RMB 968 million recorded in the same period last year.
The main reason for the change from loss to profit is that the company’s production lines producing products which have advantages in the markets were working at full capacity in the first half of the current year, while the company accurately predicted the market trend, seized market opportunities and it reduced the cost of steel production by more than RMB 60/mt ($8.4/mt).