Bloomberg reported that Tangshan Iron & Steel Co part of China second biggest steelmaker Q3 profit fell 60% as prices and demand dropped in the global recession.

Tangshan Iron & Steel said in a statement to the Shenzhen stock exchange that net income declined to CNY 226 million or CNY 0.06 a share in the three months ended September 30th from CNY 558 million or CNY 0.14 a share a year ago. Sales fell to CNY 9.21 billion from CNY 16.7 billion.

The company said in the statement that “Steel prices had fallen much more than raw materials in the first nine months, hurting our profitability.”

Tangshan Steel rose 0.5% to close at CNY 6.31 in Shenzhen, extending its gain to 71% this year. The benchmark Shanghai Composite Index rose 65% this year.

The company said January to September profit fell 86% to CNY 322 million from a year ago.

(Sourced from Bloomberg)