Baosteel Profit Falls In H1

The China's biggest steelmaker --Baoshan Iron & Steel post  37 % fall in the first-half net profit, according to the slowing demand for its products and rising costs.

Baosteel is the pricing leader in China's market, raised its main product prices for September bookings, with its domestic peers making similar moves to catch up with rising spot market prices between end July and early August, and in anticipation of stronger demand next month.

The maker of high-end steel products earned 5.08 billion yuan in the first half of this year, compared with 8.05 billion yuan in the same period last year. Four analysts on average had forecast a profit of 5.37 billion yuan.

Rivals Korea's POSCO and Japan's Nippon Steel reported year-on-year falls in June-quarter net profit.

China's manufacturing sector is likely to slow slightly for a second consecutive month in August as sluggish overseas demand saps new orders, HSBC's China Flash PMI showed last week.

HSBC expects China's Purchasing Managers' Index to have edged up to 49.8 in August, still below the 50-point mark that demarcates expansion from contraction in activity.