Following the release of half-year financial results, three of China's top steelmakers - Baoshan Iron & Steel Co, Angang Steel Co and Wuhan Iron & Steel Group - are welcoming the recovery in the steel market and praising their cost-cutting success.
The Global Times report claims that Baoshan Iron & Steel's net profit rose 9.26% year on year to 3.5 billion yuan ($ 524 million). Angang Steel Co's profit rose 93.55% to RMB 300 million and while Wuhan announced a decline in profits (down 41.71%), which is still an improvement over the company's previous results.
All three metallurgists were able to cut costs to improve profitability. But the good news is also related to job cuts, as Ansteel was forced to lay off 742 employees in the first six months of 2016. Despite cost cuts, the global steel market remains unhealthy, driven by oversupply, mainly from China.
At the same time, many Chinese steelmakers, according to the report, are producing non-competitive products, leading to heavy debt. In the first six months of this year, crude steel production in China fell 1.1% to 400 million tonnes, Baosteel said. Baosteel and Wuhan are both planning major restructuring next year.
Chinese metallurgists are pleased with their results
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Azovpromstal® 3 September 2016 г. 11:24 |
