Chinese steelmakers posted strong profit in the first half of the year, according to multiple financial reports seen by Sxcoal recently, as continued surge of steel product prices significantly boosted earnings.
Liaoning-based Lingyuan Iron and Steel Co., Ltd expected its net profit attributable to shareholders to surge 403.87% from a year ago to 614 million yuan during January-June.
Hangzhou Iron and Steel Group Co., Ltd reported its net profit attributable to shareholders at 979 million yuan during the first half of the year, surging about 149.74% compared with the same period last year.
Liuzhou Iron and Steel Co., Ltd was expected to achieve net attributable profit growth of 134.56-154.11% during the same period compared with the year-ago level.
Xinjiang Bayi Iron and Steel Co., Ltd., a subsidiary of China's steel major Baowu Group, reported net attributable profit of around 1.28 billion yuan during the first six months, skyrocketing around 1744% compared with the year-ago level.
China's steel prices hit record high in around mid-May, before falling down amid government's efforts to cool down the market.
Data showed, Shanghai HRB 400 rebar (20mm) stood at 6,090 yuan/t on May 12, surging over 73% compared with a year ago; Shanghai hot-rolled coil reached 6,820 yuan/t on the same day, soaring near 96%.
Mills' net profit in the second half of the year may not be as good as the first half, considering China has put efforts in cracking down on market speculation to stabilize prices. Besides, the country is likely to cap steel production for the rest months to keep the whole-year production no more than the 2020 level.
(Writing by Emma Yang Editing by Harry Huo)
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