Major Chinese Steel Makers' net Profits Down 43% in 2008

The China Iron and Steel Association (CISA) said Monday that the aggregate net profit of 71 medium-sized and large steel producers fell 43 percent in 2008 as weak demand drove down prices.

Net profit was 84.6 billion yuan (12.4 billion U.S. dollars), CISA said, while sales climbed 24.7 percent year-on-year to 2.57 trillion yuan.

The 71 producers earned 101 billion yuan in net profit in the first half of 2008, but they lost 16.4 billion yuan in the second half as costs rose while selling prices declined.

CISA also said 15 steel producers recorded full-year losses totaling 8.5 billion yuan.

Source: Xinhua