On January 31, Qinghai Province-based Chinese steelmaker Xining Special Steel Co. issued its estimated financial results for 2012.

Accordingly, Xining Special Steel has estimated a net profit of RMB 20-50 million ($3.2-8.1 million) for 2012, down by 84.57-93.83 percent compared to the net profit of RMB 324.0267 million ($52.26 million) in 2011.

Xining Special Steel stated that the huge decline in net profit in 2012 was due to rising costs of water, electricity, oil and transportation fees, added to lower steel prices and higher raw material costs amid weak steel industry conditions.