Sixteen A-share listed Chinese steel plants have realized higher profits for the first three quarters of 2018, according to a report by China Securities Journal on Monday.
Most of these 16 companies, which had already filed their financial reports or previews for the past three quarters on Sunday, are expecting an over 50 percent year-on-year profit increase.
Hunan Valin Steel Co. Ltd., located in central China’s Hunan Province, reported record highs in its profitability both in the third quarter and in the first three quarters. Its net profit from January to September may reach a maximum of 7.4 billion yuan (1.07 U.S. dollars), a year-on-year jump of 110 percent, while the third quarter profit may range from 2.76 billion yuan to 2.96 billion yuan (399 million U.S. dollars to 428 million U.S. dollars).
Liuzhou Iron & Steel Co., Ltd., a steel mill in southwestern China’s Guangxi Zhuang Autonomous Region, predicted that its profit for the first nine months would rise by a margin of 1.84 billion yuan to 2.16 billion yuan (265.46 million U.S. dollars to 312.6 million U.S. dollars), a year-on-year increment of 146 percent to 172 percent.
Some other steel plants adjusted their performance forecasts amid rising steel prices in China.
On Oct. 11, Jiangsu Shagang Co. Ltd., based in eastern China’s Jiangsu Province, revised its expected profit from the previous estimate, which ranged from 758 million yuan to 943 million yuan (109.6 million U.S. dollars to 136.32 million U.S. dollars), to a forecast of 870 million yuan to 1.05 billion yuan (125.76 million U.S. dollars to 152.36 million U.S. dollars).
Prices of steel in China are expected to remain high in the following months as the country begins to cap the production of this metal, a measure aimed at fighting air pollution in the upcoming winter.
This year, such production restrictions will expand to cover the Yangtze River Delta and Fujian Province, in addition to the other cities in northern China.
As the scope of production restrictions grows, steel supply may come under further pressure, while the demand for this product will climb due to China’s efforts to enhance some of its weak infrastructures.
As a result, steel prices are likely to remain high in the fourth quarter, according to Wang Guoqing, a researcher at the Beijing-based Lange Steel Information Research Center.
Most of these 16 companies, which had already filed their financial reports or previews for the past three quarters on Sunday, are expecting an over 50 percent year-on-year profit increase.
Hunan Valin Steel Co. Ltd., located in central China’s Hunan Province, reported record highs in its profitability both in the third quarter and in the first three quarters. Its net profit from January to September may reach a maximum of 7.4 billion yuan (1.07 U.S. dollars), a year-on-year jump of 110 percent, while the third quarter profit may range from 2.76 billion yuan to 2.96 billion yuan (399 million U.S. dollars to 428 million U.S. dollars).
Liuzhou Iron & Steel Co., Ltd., a steel mill in southwestern China’s Guangxi Zhuang Autonomous Region, predicted that its profit for the first nine months would rise by a margin of 1.84 billion yuan to 2.16 billion yuan (265.46 million U.S. dollars to 312.6 million U.S. dollars), a year-on-year increment of 146 percent to 172 percent.
Some other steel plants adjusted their performance forecasts amid rising steel prices in China.
On Oct. 11, Jiangsu Shagang Co. Ltd., based in eastern China’s Jiangsu Province, revised its expected profit from the previous estimate, which ranged from 758 million yuan to 943 million yuan (109.6 million U.S. dollars to 136.32 million U.S. dollars), to a forecast of 870 million yuan to 1.05 billion yuan (125.76 million U.S. dollars to 152.36 million U.S. dollars).
Prices of steel in China are expected to remain high in the following months as the country begins to cap the production of this metal, a measure aimed at fighting air pollution in the upcoming winter.
This year, such production restrictions will expand to cover the Yangtze River Delta and Fujian Province, in addition to the other cities in northern China.
As the scope of production restrictions grows, steel supply may come under further pressure, while the demand for this product will climb due to China’s efforts to enhance some of its weak infrastructures.
As a result, steel prices are likely to remain high in the fourth quarter, according to Wang Guoqing, a researcher at the Beijing-based Lange Steel Information Research Center.
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