August 3 – Xining Special Steel (600117) posted 200-percent year-on-year growth in net profits for the first half of 2011 to 232 million yuan, reports yicai.com, citing a company filing. The figures were in line with previous expectations of growth ranging from 159 percent to 224 percent. Sales revenues grew 25.84 percent year-on-year to 4.33 billion yuan while the operating profit margin for steel hit 17.08 percent, an increase of 2.66 percentage points from the same period in 2010.

In the first six months of this year, Xining Steel produced a total of 577,000 tons of iron, up 0.52 percent year-on-year and 732,600 tons of steel, an increase of 5.47 percent. Output of materials rose 5.24 percent year-on-year to hit 674,800 tons.

The output of high-purity iron ore grew 19.33 percent to 674,200 tons; limestone output grew 22.9 percent to 356,800 tons; coke coal grew 17.64 percent to 370,000 tons.

According to the China Iron and Steel Association, China produced 350 million tons of crude steel for the first half of 2011, a 9.6 percent year-on-year increase.

Output of steel and materials grew approximately eight percent during that period.

Domestic steel prices remained high even after two price adjustments in March and June.

Xining Steel decided to invest 10 million yuan to form a wholly controlled subsidiary in an attempt to consolidate control over raw materials.

Source:capitalvue