China's biggest steelmaker, Baoshan Iron & Stell Co. says its 2004 net profit rose 35% to US$1.14bn (RMB9.4bn) on record revenue due to business expansion and cost controls. Baoshan's core business gross margin dropped to 29% from 31% on higher raw-material costs; analysts expect rising raw material prices to dampen 2005 earnings for China's steel producers.