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Jinan Iron & Steel Co, whose parent is merging with Laiwu Iron & Steel Goup Co to create one of China's largest steel producers, said first-half profit may double because of higher prices and lower costs.

Net income may surge between 50 percent and 100 percent from 366.3 million yuan, or 0.32 yuan per share, a year earlier, the company said in a preliminary earnings statement yesterday.