China's Baoshan Iron & Steel Co Ltd posted a 57% fall in net profit for the first nine months of the year as a faltering economic recovery and record steel production weighed on prices.

The net profit was CNY 4.64 billion in the January to September period, the Shanghai based company said in a filing to the Shanghai stock exchange. It did not provide profit figures for the July to September quarter.

Based on its first half results, Baosteel's profit in the third quarter was CNY 940 million (USD 154.47 million), down 20.3% from a year ago, according to Reuters calculations. Last year's third quarter profit was boosted by the sale of its steel assets.

Steel demand in China, the world's top producer and consumer, remained strong in the first three quarters this year, driven by property and infrastructure, but a rapid rise in production has curbed prices, eating into mills' margins.

The company said that "Although the global and domestic economy improved slightly in the third quarter, there was little improvement in steel fundamentals. The outlook remains uncertain in the fourth quarter. The company will continue to manage costs, keep its operations lean and improve its sales to improve its performance."