Taigang Stainless Steel registered a profit of 385 million yuan ($62.46 million) during the first six months of the year, up 15.42% year-on-year, it said in a statement released August 29.
The company attributed the rise in profits to surging nickel prices, which helped buoy up the stainless steel market.
Its revenues, however, dropped by 14.09% year-on-year to 46.72 billion yuan, adding a modest economic growth, an oversupplied steel industry resulted in high costs and low profits in the sector.
The nickel spot price experienced the biggest price decline of the day, dropping 1.1 percent on the LME to close at $18,450 per metric ton on Monday, September 1. On the LME, the nickel 3-month price declined 1.0 percent to $18,570 per metric ton. The Indian nickel cash price prices declined 0.4 percent , settling at INR 1,140 ($18.80) per kilogram. For the fifth day since Tuesday, August 26, the drop-off has accelerated.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome remained essentially flat at CNY 8,300 ($1,351) per metric ton. For the fifth consecutive day, the price of Chinese ferro-moly held flat at CNY 145,000 ($23,604) per metric ton.
The Allegheny Ludlum 316 stainless surcharge held steady around $1.26 per pound. The price of Chinese 316 stainless coil held steady at CNY 26,000 ($4,233) per metric ton. The price of Chinese 304 stainless coil saw essentially no change for the fifth day in a row, remaining around CNY 16,400 ($2,670) per metric ton. The price of Chinese 316 stainless steel scrap continues hovering around CNY 16,100 ($2,621) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese 304 stainless steel scrap held flat at CNY 16,400 ($2,670) per metric ton.