Bloomberg reported that Maanshan Iron and Steel Co the second biggest Hong Kong-traded steelmaker third quarter profit surged almost fivefold as production rose and taxes fell.

According to a statement on the Shanghai Stock Exchange net income climbed to CNY 14.6 million or CNY 0.19 a share in the quarter ended September 30 from CNY 3.04 million or CNY 0.04 a share a year ago. Sales increased 36% to CNY 23.2 billion.

According to Beijing Antaike Information Development Co China steel prices have fallen since reaching CNY 4,839 per tonne on August 1 amid concerns of a slowing global economy and moderating construction demand. The prices of hot- rolled coil a benchmark product fell 2.8% the biggest drop since December 2009 today to CNY 4,236.

The company said it raised production of crude steel by 8.4% to 4.41 million tons and output of steel products by 13% to 4.3 million tons in the third quarter from a year ago. While steel production capacity remained at a high level demand was weak and overall steel prices were low and fluctuating in the third quarter. It will continue to cut costs and improve efficiency.

Contract iron ore prices the Chinese steelmakers paid Vale SA, Rio Tinto Group and BHP Billiton Ltd. stayed near record levels in the quarter.

(Sourced from Bloomberg)