Profits of China's key large and mid-size iron and steel enterprises are estimated to reach 55.6 billion yuan in the second quarter this year, up 30.64 percent year-on-year and 27 percent over previous month, according to Niu Wei, an analyst of Custeel, an integrated website on steel industry.

     The key iron and steel enterprises including Baosteel, Ansteel and WISCO with cost advantages such as long-term iron ore supply agreement and long-term shipping contracts presented higher growth in profits than that of the whole sector to more than 35 percent in the second quarter this year.

     China's large and mid-size iron and steel enterprises generated 82.788 billion yuan profits in the first five months of this year, up 23.92 percent year-on-year.

     Although raw materials like coking coal and iron ore up by a great margin, the ex-factory price and the sales price of steels also kept rising, which has brought the gross profits of the sector growing up slowly since February this year.

     Niu predicted that the profits of China's large and mid-size enterprises in the third quarter might stay in the same level of the second quarter.