Liaoning-based Angang Steel Co., Ltd (Ansteel) predicted a sharp year-on-year drop in its net profit by 74.88% to 1.72 billion yuan ($243.3 million) over January-September, due to high raw material costs and low steel product prices, the company said in its quarterly statement late October 14.
In the third quarter (July-September), the company bagged a net profit of 297 million yuan, which was 87.7% lower than the same period of the preceding year.
The company attributed the bearish forecasts to tumbling steel product prices amid a cloudy auto and household appliance industries in China and high costs of iron ore caused by supply constrain from Brazil's Vale dam disaster.
Ansteel is a large domestic steel producing and selling enterprise. The company's product structure is diversified, including hot-rolled coil, medium and heavy plate, cold-rolled plate, galvanized plate, color coated plate, cold-rolled silicon steel, heavy rail, section, seamless steel pipe and wire.
(Writing by Emma Yang Editing by Jessie Jia)
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