WISCO profit in H1 dropped 90%

Published: 01 Sep 2009 01:21:20 PST

Sep.1 MetalBiz--According to the first-half report issued by WISCO, the company profited 506mln yuan, down 90% year on year. WISCO claimed that the drops in profit mainly resulted from the financial crisis. The major steel products' market was sluggish and the price reduced significantly from last year.

WISCO said that owing to the international finance crisis, the net profit from the early of this year to the time of next report to issue dropped more than 50% over the same period of last year.

WISCO produced 6.12mln tons of pig iron totally and 6.2mln tons of crude steel. The company intended to produce 7.67mln tons of pig iron and 7.84 tons of crude steel in H2.

WISCO reduced the EXW price for September recently, but after the adjustment, the price was still higher 600-800 yuan than the spot market. Many insiders of the industry believed that this phenomenon may reduce the orders of WISCO from the end-consumers.