Report: Baosteel's profit up 113-121% for 2017

SHANGHAI, Jan 26 (SMM)－Baosteel expects net profits of 19.1-19.8 billion yuan in 2017, up 113-121% from 8.97 billion yuan in 2016, according to its annual performance forecast.

Profits in the fourth quarter were driven by higher flat steel prices, better-than-expected profits from Zhanjiang Steel as it operated at full capacity as well as through a merger with Wuhan Steel.

Stockpiling has become the key factor for steel prices in light of weak downstream consumption. Prices are likely to stabilise or inch up if there is healthy winter restocking. On the other hand, markets would be bullish in spring if winter restocking is lacklustre.

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