China steel firms see falling profits in Q1

BEIJING - Major Chinese steel manufacturers reported sharp profit declines in the first quarter of 2019 as falling steel prices eroded profit margins.

In a filing to the Shenzhen Stock Exchange Thursday night, Beijing Shougang Co Ltd said net profit in the January-March period fell 45.7 percent year-on-year to 274.2 million yuan ($40.7 million).

Revenue rose 5.3 percent year-on-year to 15.4 billion yuan.

In a filing to the Shanghai Stock Exchange, Shandong Iron and Steel Co Ltd said net profit in the first quarter plunged 75.8 percent year-on-year to 150.7 million yuan.

In addition, its revenue rose 17.3 percent to 13.8 billion yuan.

On Wednesday, Baoshan Iron and Steel Co Ltd said its net profit slumped 45.7 percent year-on-year to 2.7 billion yuan in the first quarter.

Baosteel said its gross profit margin for the main business of steel-making fell by 8 percentage points from a year earlier to 9 percent last quarter.

China's composite steel price index fell 5.6 percent last quarter.