BEIJING - Baoshan Iron and Steel Co Ltd (Baosteel), China's largest listed steel producer, said on Tuesday its first-half net profits fell 36.91 percent to 5.08 billion yuan ($793.75 million) due to weak demand and higher raw material costs.

First-half revenues for the Shanghai-based steel producer stood at 111.15 billion yuan, up 13.49 percent from 97.94 billion yuan a year ago, the company said in its semi-annual report to the Shanghai Stock Exchange.

Earnings per share dropped 36.91 percent year-on-year to 0.29 yuan in the first half, it said.

The price increase of raw materials has far out-paced that of steel products in the first six months, leading to a sharp increase in the company's costs, it said.

Meanwhile, demand for steel remains weak after sales in the country's auto and home appliance manufacturing industries turned sluggish in the first six months of the year.

The company forecasts heavy pressures for shrinking profitability in the country's steel-making industry in the second half.
Baosteel's shares closed down 0.19 percent to 5.33 yuan on Tuesday before the earnings announcement. Its share price has declined more than 16 percent since the start of this year.