Baosteel’s net profit for 2013 a four-year low

Overcapacity and slower growth of demand for steel will continue to squeeze the profitability of Chinese steelmakers in 2014, Baosteel said as it reported a 42.3% fall in net profit for 2013.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Its net profit dropped to 5.82 billion yuan ($944.52 million) in 2013, compared with 10.09 billion yuan ($1.64 billion) in 2012, according to its annual report released on Saturday March 29.

The 2013 net profit was also the lowest since 2009.

Baosteel’s operating revenue slipped 0.76% on the year to 189.69 billion yuan ($30.78 billion) last year, which it attributed to lower sales volumes and prices.

The steelmaker – one of China’s biggest – sold 21.99 million tonnes of steel products in 2013, down 6.7% on an annual basis.

It sold 9.44 million tonnes of cold rolled coil in 2013, up 0.2% year-on-year, and 8.1 million tonnes of hot rolled coil, up 1% on the year.

Baosteel continue to control 50% of the market share for cold rolled automotive steel plate – its primary product – in China. Its sales volume of this product for 2013 rose 10.8%, according to the company announcement, but it did not disclose how much it sold during the year.

The steelmaker aims to produce 22.07 million tonnes of steel, and sell 21.79 million tonnes of steel in 2014.

It is eyeing operating revenue of 195 billion yuan ($31.65 billion) this year, and is projecting an operating cost of 176.8 billion yuan ($28.69 billion).

What to read next
Glencore’s Gary Nagle might have spoken too soon when he said that his company wouldn’t be hit by a nickel fraud similar to that seen by its rival, Trafigura
Fastmarkets proposes to amend its steel cut-to-length plate carbon grade, fob mill US assessment to exclude material below 0.375 inches of thickness, which is sold with an added cost by several major mills.
The European Union’s much-anticipated Critical Raw Materials Act, announced on Thursday March 16 by European Commission president Ursula von der Leyen, has set out new lists of the raw materials now formally designated as strategic and critical
The London Metal Exchange is facing lawsuits seeking damages collectively worth more than half a billion dollars for losses that investors allege they suffered as a result of nickel trades being canceled by the exchange last year
The publication of a number of Fastmarkets’ price assessments was delayed on Thursday March 16 for technical reasons.
Continued tightness of class one supply within Europe and increased buying interest amid falling London Metal Exchange nickel prices and fresh liquidity have prompted an increase in premiums within Europe, while US and Chinese premiums remain steady for now
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.