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Taiwan's China Steel posts 2Q profit on revalued stockpiles

Taiwan's China Steel posts 2Q profit on revalued stockpiles

China Steel Corp., Taiwan's largest maker of the metal, posted its first profit in three quarters on revalued inventories.
Net income was NT$725 million (US$22 million) for the three months ended June 30, compared with a profit of NT$15.2 billion a year earlier. Bloomberg derived the numbers from first-half results, the Kaohsiung-based company reported yesterday. China Steel reported an unaudited pretax profit of NT$774 million for the quarter on July 21.
The company posted losses for two straight quarters as the global recession reduced demand from builders and automakers, and falling prices forced it to cut the value of inventories. The mill booked writebacks of stockpiles and raw materials of NT$6.16 billion after prices rebounded, it said last month.
"China Steel's earnings are improving quarter by quarter," said Peter Tzeng, an analyst at Polaris Securities Co. in Taipei, who rates the stock "overweight." "Customers have replenished stockpiles, while real demand also improves."
China Steel fell 1.7 percent to close at NT$29.5 in Taipei trading before the announcement.


Updated : 2021-04-12 16:02 GMT+08:00