Baoshan Iron & Steel Co 600019.SS, China's largest listed steelmaker, on Thursday reported a 50.6% decrease in first-quarter net profit due to high raw material prices and weak demand.
The company said in a filing to the Shanghai Stock Exchange that it made a profit of 1.85 billion yuan ($267.27 million) in the January-March period, compared with 3.7 billion yuan in the same period in 2022.
The producer's first-quarter sales revenue decreased 8.6% y-o-y to 78.6 billion yuan.
"The oversupply in the steel market continued in the first quarter and the steel industry came under intense pressure, while the iron ore price continued its upward trend," the company said in a statement.
The company added that the 62% iron ore index increased by 26.8% in the first three months of the year compared to the last quarter of 2022, while coke prices remained at a high level.
Baosteel produced 11.87 million tons of iron and 12.83 million tons of steel in the first quarter.
The steelmaker also announced that its net income in 2022 decreased by 48.4% to 12.19 billion yuan.
The company's revenue in 2022 was 367.78 billion yuan, up 0.9% from the previous year.
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