It is reported that Nangang and Magang issued their performance result in H1 of the year showing uneven development with Nangang seeing an increase while Magang eying a drop.

Net profits belonging to shareholders of Nangang were CNY 586 million up by 14.8%YoY while of Magang were CNY 310 million down by 70.02%YoY. Despite sales revenue of Magang rose by 36.22% due to increasing selling volume and rising average selling prices, surging raw materials prices made operating costs of company increase by 42.66%YoY with operating profits dropping by 68.38%YoY and total profit volume down by 66.77%YoY.

According to Magang, production and operation of steelmakers experienced big difficulty due to high purchasing cost of raw materials. For instance, average CIF price of imported iron ore was USD 160.9 per tonne hitting record new high up by 46.4%YoY squeezing profitability of steelmakers accordingly. Sales profit ratio of CISA members was only 3.14% down by 0.4%YoY.

However, under the same industrial background, Nangang saw an increase YoY. Semi-annual report showed its operating revenue rose by 35.16%YoY. Despite operating costs increased by 38.99%YoY its operating profit saw an increase of 3.39% with total profit volume up by 5.93%YoY.

(Sourced from MySteel.net)
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