Chinese Iron, Steel Industry Shows Growth Momentum

The Chinese iron and steel industry has started to turn better in the first quarter of 2009.

Baoshan Iron & Steel Co., Ltd. (SHSE: 600019) achieved net profits attributable to shareholders of CNY 89 million in the first quarter of this year, slumping 97.7% over the same period of a year earlier and compared with CNY 6 billion loss in the fourth quarter of 2008. Output of iron was CNY 4.72 million tons and steel, 5.126 million tons.

Except Baoshan Iron & Steel, 19 listed companies in the iron and steel industry suffered losses of CNY 2.5 billion in the first quarter, compared with losses of CNY 16.7 billion in the fourth quarter of last year.

In spite of low demand and low price on the iron and steel market in the first quarter of this year, the Chinese government's stimulus packages, like lift of export rebates on some iron and steel products, still are helpful for the development of the industry.

Source: www.cnstock.com (April 29, 2009)

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