SHANGHAI, Oct 30 (Reuters) - Baoshan Iron & Steel Co Ltd , China’s biggest listed steelmaker, is not optimistic about its performance through the first quarter of 2013 due to rising costs, a senior executive said on Tuesday.
Ma Guoqiang, general manager of Baosteel, told an online investors’ briefing that although steel prices have stabilised, margins would suffer from rebounding coal and iron ore prices.
He added that lower production by Japanese car makers in China and falling exports to Japan caused by the territorial dispute between the two countries will hurt Baosteel’s business in the short term.
The company said on Monday its third quarter profit fell 4.9 percent to 1.18 billion yuan ($189 million), due to a rapid decline in steel prices as cooling economic growth hit demand in the world’s largest steel industry.
$1 = 6.2436 Chinese yuan Reporting by Ruby Lian, Samuel Shen and Kazunori Takada; Editing by Jacqueline Wong