Baoshan Iron & Steel Co Ltd (SHA 600019) said its first-half net profit fell 38.58 percent year-on-year to 4.39 billion yuan (548 million US dollars) mainly due to rising prices of raw material and energy, Bloomberg reported. ``Almost all steelmakers' profit has been cut because of a steel glut and lower products prices,'' said Bloomberg, quoting Luo Wei, Shanghai-based analyst with China International Capital Corp. as saying. ``Growth of Chinese steel production may slow down and steel prices will average higher in the second half than the first half,'' said Luo. Higher material and electricity costs pressured margins for Baoshan Steel.