Inner Mongolia-based Chinese steelmaker Baotou Steel Union Co., Ltd. (Baotou Steel Union) has announced that its net profit amounted to RMB 279 million ($41.2 million) for the January-June period this year, rising by 84.61 percent year on year.
In the given period, Baotou Steel Union registered an operating revenue of RMB 28.034 billion ($4.1 billion), down 10.52 percent year on year.
In the first three months, Baotou Steel Union posted a net loss of RMB 463 million, while it recorded a net profit of RMB 742 million in the April-June period, contributing to the net profit in the first six months.
The company's rare earth concentrate price surged by 44.6 percent quarter on quarter in the April-June quarter, directly fueling its increasing profit.
Despite weak demand across the sector, Baotou Steel Union is pushing ahead with its premium and rare earth steel strategy. In the first six months, its rare earth steel lineup grew to 67 products, with six making their industry debut.
The rising share of high-value-added products has effectively offset the impact of the subdued common steel market, enabling the company to “sell quality steel at higher prices".
