OREANDA-NEWS. November 14, 2011. Baosteel Co.,Ltd. releases third quarter result announcement. During the third quarter, Baosteel turnover continues to grow and it achieves 6.031 million tons of iron production, 6.794 million tons of steel production, 6.611 million tons of steel products sales, 56.18 billion yuan of operating income, with an increase of 4.97 billion yuan compared with same period last year, and with 1.44 billion yuan of total profit. The first three quarters realizes 8.23 billion yuan of total profit,of which 6.321 billion yuan of net profit is attributable to shareholders of listed companies, and with 0.36 yuan per share of basic earnings, reported the press-centre of Baosteel.

The announcement says that during the 3rd quarter, the international financial market continues to turbulate, the domestic macroeconomic policy continues to tighten and economic year-based growth slows down. The recovery of needs of domestic major downstream steel demand industries such as automobile, machinery slows down. Due to the lack of new projects, there is weakened demand for long products. Despite limited power supply factor, the domestic crude steel production remains high.

Since the second quarter, domestic steel price continues the trend of oscillation, in which hot and cold-rolled sheet prices differentiate, long products prices loose. In the same period, main iron and steel raw material prices remain high. The overall year-based profitability of the steel industry has fallen sharply over the second quarter. There is further increasing financial pressure. Especially, plate manufacturing companies continue to face higher costs and profitability pressures.

In the fourth quarter, the domestic macroeconomic environment and the steel market is still not optimistic. Yearly and regular renovation inside Baosteel Co.,Ltd. will also impact production organization and production-scale. The company will continue to take system optimization measures, speed up inventory turnover, strenghthen credit management, prevent financial risks, set scientific payment cycle, exert financial advantage, continue to strengthen cash flow management and inventory control, reduce operational risks, actively exert their advantages and further implement internal measures to tap the potential and enhance efficency and ensure stable operating performance.