Despite of rising raw material price, weak demand and tight financial liquidity, Jinan Steel has realized profit of CNY165 million in the first eight months of this year up CNY63.78 million compared with the same period last year.

The August profit was CNY20.7766 million achieving the monthly target. In the first 9 months of this year the company has reduced cost by CNY958 million YoY.

Mr Cai Zhangping General Manager of Jinan Steel said Chinese steelmakers face a tougher situation on sliding price, weakening demand and oversupply pressure.

Part of mills have stopped production, even Baosteel begin to cost expenses. It is predicted that Jinan Steel might run into red in October 2011. Moreover, the mill will make every effort to strive for the profit target of CNY 30 million in October.

(Source: www.steelhome.cn/en)
China steel information centre and industry database