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Baoshan H1 profit drops on slowing demand from automakers
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Wednesday, 31 Aug 2011

Bloomberg reported that Baoshan Iron & Steel Co China biggest publicly traded steelmaker H1 profit dropped 37% because of slowing demand from automakers and rising prices of iron ore and coal.

The Shanghai based company said in a statement that net income fell to CNY 5.1 billion or CNY 0.29 a share, in the six months ended June 30 from CNY 8.05 billion or CNY 0.46 a year earlier. That trailed the CNY 6.06 billion average estimate of five analysts surveyed by Bloomberg News.

Mr Li Xiaolu a Shanghai based analyst with Capital Securities Co said “Baoshan was hit by slowing auto steel demand which got worse after Japan earthquake affected vehicle production. Still, Baoshan more profitable than other domestic mills of flat products because its prices usually have a premium to the rivals.”

Baoshan dropped 0.2% to close at CNY 5.33 in Shanghai taking this year loss to 17%. The local benchmark index has fallen 9%YoY. Baoshan revenue gained 13% to CNY 111.1 billion in the first half from a year ago.

(Sourced from Bloomberg)

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