Chinese steel company Baotou Steel Union Co., Ltd, based in Inner Mongolia. Baotou Steel Union announced that its net profit for the period from January to June of this year was 279 million yuan ($41.2 million), an increase of 84.61% year-on-year.
During the specified period, Baotou Steel Union recorded an operating income of 28.034 billion yuan (4.1 billion US dollars), which is 10.52% less compared to the same period last year.
During the first three months, Baotou Steel Union recorded a net loss of 463 million yuan, while for the period from April to June, it made a net profit of 742 million yuan, contributing to the growth of net profit in the first six months.
The price of the company's rare earth concentrate increased by 44.6 percent between April and June. The company increased its profit compared to the previous quarter, which directly contributed to its profit growth.
Despite weak demand in the industry, Baotou Steel Union continues to enhance its premium and rare earth steel production strategy. In the first six months, the rare earth steel product line grew to 67 items, six of which made their debut in the industry.
The growing share of high-value-added products effectively offset the impact of the downturn in the overall steel market, allowing the company to "sell quality steel at higher prices."
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