Lower raw material costs keep Baosteel in black
Baoshan Iron & Steel Co posted its biggest profit in five quarters as China’s largest publicly traded steelmaker benefited from rawmaterial costs that fell faster than steel prices. Third-quarter net income climbed to 1.86 billion yuan ($304 million) from 938.7 million yuan a year earlier, the company said on Thursday in an exchange filing. Sales fell to 46.1 billion yuan from 46.2 billion yuan. Steelmakers are gaining from a drop in iron ore costs after increasing supplies from miners including Rio Tinto Group and Vale SA spurred a global glut. capital. Its core Tier-1 capital adequacy ratio was 9.29 percent at the end of September. The Beijing-based bank will sell as many as 2.46 billion Shanghai-listed A shares at 4.84 yuan each, subject to adjustment, according to a filing to theHong Kong stock exchange.