It is reported that Inner Mongolia Baotou Steel Union posted a 2%YoY drop in net profits from the first half of 2011 to CNY 370 million with earnings per share of CNY 0.06.

Baotou Steel net profit drop was blamed on higher prices of iron ore and raw materials. Its operating costs increased 16.1%YoY to CNY 20.298 billion during the reporting period.

Baotou Steel produced 5.095 million tons of steel and 4.865 million tons of irons in the first half of 2011. It also produced 4.877 million tons of semi-finished metals in the same period. Baotou Steel’s revenue increased 16.09%YoY to CNY 21.94 billion.

Baotou Steel said its cold and hot-rolled sheet metal and steel pipe output remained high in the first half, but that sales of these products fell as a result of slower railway construction.