On April 17, Chinese steelmaker Shougang published its 2008 annual report and Q1 report.
According to its annual report, the company registered a total turnover of RMB 24.513 billion ($3.59 billion) and a net profit of RMB 410 million ($60 million) for the whole of 2008, marking respective decreases of 10.28 percent and 35.62 percent year on year. The loss it suffered in the fourth quarter last year reached RMB 160 million ($23 million).
Last year, great changes took place in the Chinese steel market and in the global market as a whole. Steel prices soared sharply in the first half of the year, and then posted a continuous decrease during the second half against the background of the financial crisis and shrinking market demand. During the fourth quarter of 2008, the average steel price of Shougang dropped from RMB 4,712/mt ($689.9/mt) for the first nine months to RMB 2,885/mt ($422.4/mt), down 38.8 percent. Shougang's output for the year in question totaled 3.66 million mt of pig iron, 4.17 million mt of crude steel, and 2.74 million mt of finished steel.
On the other hand, in the first quarter of 2009, Shougang achieved RMB 5.582 billion ($817 million) in sales revenue, down 12.20 percent year on year; meanwhile, its net profit reached RMB 73.5589 million ($10.77 million), down 62.91 percent.