Almost all Chinese steelmakers floating A-shares on the stock exchanges suffered heavily from the economic slowdown as of 2011, and most reported substantially slashed profits or losses for 2012.

Valin Steel (000932.SZ) announced  a net loss of RMB 3.25bn (US$518bn) in 2012 due to the sluggish steel market. Operating revenue dropped 19.68% year on year (y-o-y) to RMB 59.32bn ($9.46bn). In 2011, Valin saw a net profit of RMB 70.13M ($11.2M).

Jiugang Hongxing Co.(600307.SH) saw net profit for 2012 plunge 68.1% from a year earlier to RMB484.5M ($77.27M). The company’s operating revenue amounted to RMB63.7bn ($10.16bn) in 2012, up 15.5% year on year. It produced 7.86Mt of pig iron, 9Mt of carbon steel and 9.72Mt of steel products last year.

Xinjiang Bayi Iron and Steel Co. (600581.SH) said its net profit for 2012 was down 67.96% from a year earlier to RMB154.3M ($24.61bn). The Shanghai-listed steelmaker’s operating revenue in 2012 fell 4.88% y-o-y to RMB26.58bn ($4.24bn). Bayi Iron and Steel is a subsidiary of the Baosteel Group.

Angang Steel Co Ltd. (000898.SZ; 00347.HK) reported an increasing net loss of RMB4.16bn ($663.47M) for 2012 due to the softening property market, lower steel prices and higher raw material costs. The listed unit of Anshan Iron and Steel Group Corp. said its net loss for 2011 was RMB 2.15bn ($342.9M). Full-year revenue also fell 14% to RMB77.75bn ($12.37bn) in 2012 from RMB90.42bn ($14.42bn) in 2011.

Anyang Iron and Steel Co (600569.SH) said it incurred a net losses of RMB 3.49bn ($556.6M) in 2012, marking the losses for the first time since its establishment. As domestic demand for steel products was weak, its operating revenue for 2012 went down 29.62% from a year earlier to RMB20.95bn ($3.34bn). It produced 5.59Mt of pig iron, 5.44Mt of crude steel and 5.26Mt of steel products last year with sales revenue at RMB20.95bn ($3.34bn).

Baoshan Iron and Steel Co. (Baosteel, 600019.SH) registered a 41% growth in net profit as its equity sale offset the softening steel market. Audited net profit for the year stood at RMB 10.39bn ($1.65bn) 41% higher compared with the RMB 7.362bn ($1.17bn) for the previous year. The main operating revenue of the company in the year stood at RMB191.14bn ($30.48bn), down 14% y-o-y.

Chongqing Iron and Steel Corp. (601005.SH, 01053.HK) reported net profit up 106.7% y-o-y  but only to a modest profit of RMB98.8M ($15.76M) in 2012 as it incurred net losses of RMB1.47bn ($234.45M) in 2011. Operating revenue fell 21.5% from a year earlier to RMB18.46bn ($2.94bn) in 2012. In response to the sluggish steel market, the steelmaker readjusted its product mix and sold non-core assets.

Source: China Metals e-mail infochn..........bta.net.cn