• Steel Market Insider

    We strive to let you one step ahead of the market

Steel News
Advanced search
    Key words
  • Search By
  • Date
  • Classification
  • Region
Advanced search

Baosteel's net profit slumps by 44% in 2011

  • A
  • A
  • A
It is reportedly that Chinese largest steelmaker Baosteel finished 2011 with a 44% dip of their net profit, due to the higher price of global iron ore which caused significant decline over the profitability.

In a formal statement to Shanghai Stock Exchange, the company said that its net profit in 2011 was around US$1.11 million, this number is much lower than US$2 million in 2010, although the company’s sales revenue in 2011 increased by 10% to US$35.432 million.

The tight profit margins is common issue in the steel sector of China due to the facts of rising raw materials, weak demand by economic crisis and excess production capacity in the country.

To react to loss, Baosteel said a month ago that it will sell its subsidiary of stainless steel and special steel to its parent company Baosteel Group Corporation, as this branch is now one of its main sources of losses, accumulated loss of US$244 million for the company.

This decision means that the company’s annual production will drop from 26 million tons to around 22 million tons and have to axe about 8,000 employees.
News Date 03 Apr 2012 16:17:44 reported by Raul Lee

Kloeckner misses Q3 target on weak price...
Finance and economy
08 Oct 2015 13:47
Germany Klöckner to acquire United States sheet me...
Finance and economy
07 Oct 2015 10:25
Mexico’s Minera Autan plans to reduce production c...
Finance and economy
07 Oct 2015 10:15
Glencore plans to cut 240 jobs in South Africa min...
Finance and economy
06 Oct 2015 13:42
US’s Valmont industry announces to acquire galvani...
Finance and economy
06 Oct 2015 10:13
Most Popular