Baosteel expects a profit in 2013

The largest metallurgical company in China Baoshan & Steel Co states that its profit this year will grow even better than in 2012 due to the intensified demand for metal from automakers, railway workers and energy.

“We are sure that our operating profit this year will be better than in the past,” said the General Director of Baoshan Steel Ma Tsyan at the past online meeting with investors.

Baosteel, based in Shanghai, controls more than half the market for the supply of metal rolling for the production of vehicles in China, said yesterday that its net profit grew in the first quarter in an annual comparison by 33 percent to 1 billion 630 million yuan ($ 264 million) due to the restoration of demand and prices.

On March 8, 2013, the Shanghai Metallurgical Company raised prices for hot -rolled and cold steel rental to the highest level from June last year.

The company's operating profit in January - March rose 90 percent to 2 billion 220 million yuan in the first quarter compared to 1 MLD 170 million yuan in the same period last year.

According to the Chinese Association of Automobile Producers, the sale of passenger cars in China increased compared to last year by 20 percent to 2 million 840 thousand units in January and February showing the strongest result since 2010.

China also plans to build an additional 120 thousand km of railways until 2015, reports Sinhua.

Nevertheless, the prices of a hot -rolled roll in China, which are a kind of marker, decreased by 12 percent last month aminated with relatively lower than expected economic growth. Baosteel general manager also said that the demand for steel from the shipbuilding industry remains weak.

The supply of iron ore with a content of 62 percent of iron increased to a 16-month maximum of $ 158.9 ton by February 20. After that, prices fell by 15 percent to $ 134.6 tons as of yesterday. The cost of iron ore raw materials will continue to fall and amount to about $ 130 tons this year, said Ma Tsyan.

Baosteel plans to produce 22 million 560 thousand tons of steel this year, 2 million 300 thousand tons of which will be shipped for export.

Baoshan & Steel Co shares have grown by 0.2 percent, closing to the position of 4.80 yuan today.