BaoSteel announces Q3 result

BaoSteel Co Ltd released the 3rd Quarter Performance Report 2013 on October 30th. The statistics in the report showed that BaoSteel Co Ltd. achieved the better overall profitability, it keeps playing a role of leader in the metal industry in China.

During the Q3 2013, BaoSteel Co Ltd has completed the iron output of 5.161 million tonnes, the steel output of 5.324 million tonnes, with sales volume of steel billets of 5.563 million tonnes; The company realized the consolidated profit of RMB 1.39 billion. Compared to the same period of last year, the operating profit earned in the Q3 increased by RMB 350 million with increase of 33% excluding the income by selling share equity of BaoSteel Stainless Steel and BaoSteel Special Steel in the Q3 of last year.

In addition, in the first three quarters of this year, BaoSteel Co Ltd has realized a total accumulated profit of RMB 65.7 billion. Compared to the same period of last year, the operating profit earned in first three quarters increased by RMB 22.8 billion, with rise of 53.14%, excluding the earnings made by selling the assets and equity of BaoSteel Stainless Steel and BaoSteel Special Steel.

During the Q3 of this year, the global economy, including China's economy is steady and going up. No obvious change has been found in the demands and supply in iron and steel market, the cost of raw materials and sales prices of steel products bottomed out and began to rise slightly. The medium-sized and large sized domestic iron and steel enterprises has earned minor gains, turning over the page of continuing losses in performance since the first half of this year, however, the whole picture is not too much optimistic, it still maintained a low profit in the whole metal industry.

In the Q3 of this year, BaoSteel Co Ltd confronted with many severe challenges in the production, for example, the No3 BF was stopped and had it revamped, the power supply was cut off and saved to redistribute to the local residents in the hot summer. In spite of these negative factors, each business unit managed to overcome the difficulties in external market and internal organization to production. We still actively catch up with the changeable rhythm of the market by means of keeping the balance between production and sales and optimizing the product mix, the company has achieved the established business target preferablely.

In the fourth quarter, the market is full of uncertainties, the production machine units in BaoSteel Co Ltd are still in a period of annual overhaul, the company will continue to carry forward the well organized production and spare on efforts to control the operating cost, to strengthen the linkage between procurement and sales further, by doing so, BaoSteel Co Ltd strives for remaining constant and stable operating performance.