Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
Shagang estimated its H1 net profit at 13-16 million yuan ($2.1-2.6 million), an increase of as much as 80% year-on-year, company cfo Zhang Zhaobin said during an online results briefing late last week.
The mill generated net profit of 3.76 million yuan ($609,000) in the first quarter of 2014, down 19.7% on an annual basis, according to its financial results statement released in late April.
The recovery of the steel market in the second quarter is believed to be the main reason for the rise in first half profits, market participants said.
“Most mills are able to make gains in April due to the rising steel prices and lower raw material costs, profit was above 100 yuan ($16) per tonne,” a Beijing-based analyst said.
East China rebar prices averaged at 3,274 yuan ($531) per tonne in April, compared with 3,171 yuan ($514) per tonne in March, according to Steel First pricing archive.
China’s steel industry purchasing managers’ index (PMI) for Apirl showed positive growth for the first time since September 2013. The index stood at 52.6 points last month, compared with 44.2 points in March, according to data released by the China Federation of Logistics & Purchasing (CFLP) on May 1.