Shagang’s net profit surges fourfold in H1

First-half net profit at Shagang, China’s largest privately-owned steelmaker, increased fourfold year-on-year to 34.96 million yuan ($5.67 million), the mill said in its biannual report on Tuesday August 26.

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

The result is more than double the figure it predicted for the period back in May.

The company generated revenue of 5.3 billion yuan ($859.7 million) in January-June, up 2.8% on an annual basis, according to the report.

China’s steel mills have benefitted from cheaper input costs this year, as the drop in iron ore prices outpaces those of steel. Combined net profits of member mills of the country’s iron and steel assn (Cisa) for the first half more than doubled on a yearly basis.

Metal Bulletin’s 62% Fe iron ore index averaged at $111.79 per tonne cfr China during the first half of this year, down 18.8% from an average of $137.59 in H1 2013. Prices have remained below $100 since May 19, dropping below the $90-per-tonne threshold on Tuesday.

Rebar prices in Eastern China on the other hand averaged at 3,212 during the period, down just 8% from year-earlier levels.

Shagang was also optimistic about its performance in the third quarter.

The steelmaker estimates its net profit for the first nine months will likely be treble year-earlier levels at 50-55 million yuan ($8.1-8.9 million), due to market expansion and increased sales volumes.

Shagang produced 1.5 million tonnes steel and 1.48 million tonnes of pig iron in the first half, up 0.62% and 3.46% year-on-year, respectively.

The mill exported 56,000 tonnes of steel products during the period, generating $34.2 million of revenue, mainly to South Korea, Thailand, Vietnam and Britain. The mill did not provide figures for the previous year.

What to read next
A summary of second-quarter and first-half results posted by Aluminium Bahrain (Alba) for the period ending June 30, 2022
The publication of Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Northern Europe and daily steel hot-rolled coil index, domestic, exw Italy for Monday August 15 took place earlier than scheduled due to a reporter error.
Fastmarkets invites all nickel market participants to provide feedback on its initiative to launch a price for the physical mixed-hydroxide-precipitate (MHP) market.
Inquiries for supplies of low-carbon aluminium in Europe for 2023 are steadily increasing, leading a growing number of market participants to write the Fastmarkets low-carbon aluminium differentials into their contracts
The Inflation Reduction Act in the United States may ironically cause global metal market prices to rise for some metals used in electric vehicles (EVs), Fastmarkets sources said
Globalization, financialization and other key differences in today’s metals markets make comparisons to past periods of inflation potentially misleading. Fastmarkets experts discuss.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed