Q4 Steel Prices Lack Momentum to Stay High

Baosteel predicated domestic steel supply will be more balanced in the fourth quarter of 2010, while steel prices will likely remain unchanged from their current level, after posting a fall of 15.96 percent for third-quarter net profit.

The company is struggling to maintain a stable performance in the fourth quarter amid difficulties such as more frequent equipment repairs and high costs. But the power rationing policy will likely drive up the steel prices, thus increase mills' ability to profit by year-end. The company also estimated that full-year profits would grow year-on-year by 110 to 130 percent.