China-based Chongqing iron and steel’s net profit soared to 1.092 bn in Q1 (January-March) up exponentially by 26078pc from the prior-year quarter. The company’s profits improved by enhanced product mix and lower production costs achieved through technical transformation. Higher steel prices amid production curbs to control pollution widened Chinese steelmakers’ profit margins in the March quarter.
In Q1, the company’s operating income rose to CNY9.98bn ($1.54bn) up by 92.7pc from the prior-year quarter. Net profit attributable to the parent company rose by 26078.1pc to CNY1.09bn.
Chongqing’s iron output was 2.264mn mt in Q1, which is 26.65pc for the annual target, while steel output was 2.419mn mt, 24.19pc and commercial billet output was 2.330mn mt 24.32pc of the annual target. The company aims to produce 10mn mt crude steel in 2021.
In September, China’s Baowu steel group acquired a controlling stake in Chongqing Iron & Steel.