Baosteel Reports Surge in Net Profit in Q1 of 2021
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Baosteel Reports Surge in Net Profit in Q1 of 2021

China's biggest listed steelmaker Baoshan Iron & Steel's net profit surged 247.8% to CNY 5.4 billion (USD 833 million) in the first quarter to its highest

China's biggest listed steelmaker Baoshan Iron & Steel's net profit surged 247.8% to CNY 5.4 billion (USD 833 million) in the first quarter to its highest since the fourth quarter of 2018, up 11.2% from the fourth quarter in 2020 and up compared with 1.5 billion yuan net profit in January-March last year. Baosteel’s net income stood at CNY 12.7 billion yuan in 2020, up 0.9% YoY. Its net profits picked up after the third quarter in 2020 amid rising steel prices and a revival in demand. Baosteel said "Supported by both domestic economic recovery and demand expectation, the steel sector has improved and downstream orders are full.”

Despite increasing raw material prices like iron ore, Baosteel had managed to cut costs by CNY 1.3 billion by improving efficiency, which also helped to boost company's performance

The company aims to produce 51.13 million tonnes of steel and to realise total income of CNY 289.6 billion in 2021, compared with steel output of 45.62 million tonnes and income of CNY 283.7 billion last year. Baosteel said "We expect our net profit in the first half will also rise significantly from a year earlier.”

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