Shanghai Daily: Business - shanghaidaily.com
SLUGGISH third-quarter earnings results of a number of Chinese steel stocks had raised concern on the industry outlook, while analysts eased such worries, saying it was due mainly to a delay in price rise. Some leading mills such as Wuhan Iron & Steel Co have reported poorer earnings in the past quarter than in the second, as changes in their seasonally adjusted product prices lagged a rise in the market prices, according to Huang Jing, at United Securities. Steel prices in the domestic cash market started to rebound in late July following a correction over past months. "As most mills' have raised four-quarter prices, and the prices are expected to keep rising in 2008, we expect earnings could also keep rising," Huang said. Shanghai-based Baoshan Iron & Steel Co had posted a worse-than-expected 50 percent earning drop in third quarter year on year, its first decline in more than a year, due to loss in the stainless steel sector. But analysts said the profitability