August 29 – Hebei Iron and Steel  recorded an 11.64 percent year-on-year growth in interim net profits to 803 million yuan with EPS of 0.12 yuan, up 20 percent, reports yicai.com, citing a company filing.

The Tangshan-based firm produced 12.54 million tons of iron, down 1.6 percent year-on-year, or 47.74 percent annual target. Output of steel fell 3.69 percent year-on-year to 1.45 million tons, done 49.36 percent of annual targets.

Hebei Iron and Steel also produced some 12.29 million tons of steel materials, down 0.25 percent year-on-year, or 50.59 percent of annual targets. Sales revenues rose 16.88 percent year-on-year to 68.59 billion yuan.

The steel industry is reportedly facing overcapacity, and demand for steel material was hindered by central government macroeconomic policy on the real estate market. Weak international demand, rising raw material costs and the appreciation of the renminbi also led to a sharp fall in exports, the company claimed.

Hebei Iron and Steel also says the central bank’s two increases in the interest rate as well as the bank reserve ratio, which it raised six times, brought further pressure.

Liu Junqing, analyst at Shanxi Securities predicts China’s iron ore price will fall due to a week international steel market, sluggish consumption and the country’s launch of an iron ore price index.

Source:Capitalvue