Angang Steel Co Ltd, which suffered huge losses amid a gloomy steel market last year, continued to profit in the third quarter following on from the first half.

The company said on Tuesday it expects net profit for the first nine months of the 2013 fiscal year to be 7.65 million yuan ($1.25 million). During the same period in 2012, the company had a deficit of 31.70 million yuan.

It said the main reason for the optimistic forecast is reduced costs.

The company saw a profit of 63 million yuan in the third quarter, compared with a 1.19 billion yuan loss during the same period last year.