Hebei Iron and Steel Corp expects net profit for Q1 2013 to drop 70-90% from a year earlier to RMB 84M to RMB 107.87M (US$13.5M - $17.35M).

The company said in a filing to the stock exchange that China’s steel market remains in a severe glut and saw fierce competition in Q1. Meanwhile, prices of steel products were much weaker than those of raw materials, leading to the sharp decline in profits.

Net profit for the first quarter of 2012 amounted to RMB 359.57M ($57.8M). The company said in a preliminary report that net profit for 2012 was projected to plunge 92.09% compared to 2011 to RMB 109M ($17.53M), while operating revenue in 2012 amounted to RMB 111.6bn ($17.95bn), down 16.28% year on year.