China Securities Journal reported that Xinxing Casting Pipe lately revealed mid-year report, showing that its business income in the H1 gained 17.01%YoY from the same period of last year to CNY 1.2411 billion and the net profit increased by 21.19% YoY to CNY 472 million.

According to the report, the government economic stimulus package is functioning and the mill has made a pretty fortune by selling long product.

Source with the mill said the capacity release in construction steel in second quarter has gone beyond the fundamental rally and the pressure on resource supply gradually comes to surface. There is a possibility that construction steel is going to move down again given the still obscure international economical situation and potential waving demand.

The source said the mill will pay close attention to the product price changes, and ensure the effective operation of its production-supplying-selling-transportation system with a view to realizing the mill's target.

(Sourced from China Securities Journal)