News Room - Steel Industry

Posted on 21 Aug 2008

Masteel and Laiwu Steel benefit on higher steel prices

It is reported that Masteel and Laiwu Steel posted a first half net profit of CNY 653 million and CNY 2.261 billion respectively up by 103.52% and 29.99% YoY. Wisco also saw an increase of 37% in its net profit. The profit hike was down to rising steel prices. 

Statistics showed the domestic composite steel price index in January grew less than 1 percent from a month earlier. However, the price indexes in February and May exceeded 7% though this upward trend softened in March, April and June. The average price index stood at 144.77 points in the first half up by 30.92% from last year.

The production costs also shoot up in the first half. The price of PCI coal purchased by medium and large steelmakers was up by 36.85% that of coking coal was up by 61.63%, that of coke was up by 81.8% and that of imported iron ore was up by 53.86%.