China's top steel maker 2015 net profit plummets

Baoshan Iron and Steel Co. (Baosteel), China's largest listed steel maker, saw a 83-percent plunge in its 2015 net profit, reflecting a general slowing in the industrial sector.

State-owned Baosteel attributed the plunge to sluggish demand, steel price declines -- which outpaced a fall in the price of raw materials -- and expanding foreign exchange losses, according to preliminary figures submitted Tuesday to Shanghai Stock Exchange, where the company is listed.

The company's net profit reached 961 million yuan (about 144 million U.S. dollars) in 2015, down 83.4 percent from one year earlier, it said. Business revenue decreased 12.6 percent year on year to 164.1 billion yuan.

Baosteel's financial report came hours after China released its economic data for 2015, which showed the economy grew 6.9 percent last year, its slowest pace in a quarter of a century. Industrial production growth slowed to 6.1 percent last year, from previous double-digit rates.

The moderation is a by-product of efforts to steer the Chinese economy away from a manufacturing and credit-fueled growth model to one based more on innovation, the service sector and consumer spending.

Baosteel's share price surged 3.08 percent to 6.02 yuan on Tuesday, and the Shanghai index climbed 3.22 percent, despite the growth data. Endi