Chinese company Baoshan Iron & Steel Co Ltd reported that net profit in July-September increased by 56.4% compared to the previous quarter, helped by cost cuts and economic recovery. In the first nine months of the year, the largest steel producer in China, known as Baosteel, generated 7.86 billion yuan ($ 1.17 billion) in net profit, down 12.9% from the same period last year, according to a statement to the Shanghai Stock Exchange. Thus, profit in the third quarter was 3.86 billion yuan, up from 2.47 billion yuan in the second quarter, up 56.4%.
“In the third quarter … demand from downstream sectors such as automobiles, home appliances, and engineering equipment continued to recover,” the company said, adding that in the first three quarters, costs were cut by 4.9 billion yuan and overcome consequences of a furnace explosion.
The results were Baosteel’s best quarterly performance since the last quarter of 2018.
Baosteel produced 32.8 million tons of pig iron and 35.3 million tons of steel in the first nine months of the year, according to the statement.
Revenue for the nine months was 200 billion yuan, down 7.8% from January-September 2019. The company’s total revenue this year is expected to be 270.4 billion yuan.