Article: China : Baoshan Steel, Angang Profit Recovery to Stall on Overcapacity.(Financial report)

Byline: sanjayV03

Iron & Steel Co. and Angang Steel Co., posting the best quarterly profit in at least a year, now face slower growth as oversupply in the world s largest steel-producing nation reduces prices.

Demand is easing amid rising pressure from overcapacity, Baoshan, the largest Chinese mill, said yesterday. Angang Steel Co. said Oct. 27 that earnings this quarter will be less than net income in the past three months.

Benchmark Chinese steel prices have fallen 21 percent from a 10-month high on Aug. 4 as production overwhelmed demand fueled by the nation s 4 trillion-yuan ($586 billion) stimulus spending. Steel output in China reached ...

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