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China Steel Q2 profit rises after prices climb

China Steel Q2 profit rises after prices climb

China Steel Corp., Taiwan's largest steelmaker, posted a 57 percent gain in second-quarter profit after prices of the alloy climbed.
Net income rose to NT$13.1 billion (US$396 million) in the three months ended June 30, compared with NT$8.37 billion a year ago, according to figures derived by Bloomberg from the half-year result announced yesterday by the Kaohsiung-based company.
China Steel is boosting capacity and increasing prices to meet demand from shipbuilders and building companies in Taiwan, where the economy grew faster than expected in the quarter.
"They did quite well in terms of first-half product prices," Jack Chang, a Taipei-based analyst with Yuanta Research Center, who has a "buy" rating on the stock, said before the profit announcement. "Earnings growth should be OK at least for the next quarter or two."
China Steel shares rose 3 percent to close at NT$41.5 in Taipei after the earnings announcement, reversing earlier losses. The stock has advanced 24 percent this year, compared with a 10 percent gain in the benchmark Taiex stock index.
Profits are rising at steelmakers as prices for the alloy increase. Arcelor Mittal, the world's largest mill, reported a 50 percent jump in second-quarter profit after raising prices in the U.S. and Europe. Posco, Asia's third-largest producer, posted a 55 percent advance in profit.


Updated : 2021-10-22 10:25 GMT+08:00