China Precision Steel, Inc. reported net income of $2.6 million, or $0.06 per diluted share, for its second fiscal quarter of 2010. This was a strong improvement from the net loss of $2.0 million, or $0.04 per diluted share, in the same quarter last year.

China Precision Steel, Inc. reported $27 million in revenues for the second fiscal quarter of 2010, up 54% from the $17.6 million reported in the same quarter in fiscal 2009.

Dr. Wo Hing Li, the CEO of China Precision Steel, Inc., said, “We are optimistic that market activity will improve throughout the first half of 2010 because our business has been gradually stabilizing and our visibility on customer orders has improved considerably.”

China Precision Steel, Inc. had a backlog of $23.9 million in orders as of 12/31/2009, and the company believes its monthly production will be approximately 10,000 tons based on that backlog. The company sold 35,228 tons of steel in the second fiscal quarter of 2010, a 140% increase on a year over basis, and up 60% sequentially from the first fiscal quarter of 2010.

China Precision Steel, Inc. reported that the average price per ton realized in the second fiscal quarter was $759 per ton, a sharp drop from the $1,182 realized in the same quarter in fiscal 2009. The sharp decline in average price per ton was a reflection of the global recession that cut demand for steel.