Mixed outlook forecast by steel firms

Updated: 2013-07-16 16:38

By WANG YING in Shanghai (chinadaily.com.cn)

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Forecasts by China's major steel mills showed a mixed earnings outlook.

As of July 14, half of the 34 domestically listed steel makers had released their first-half earnings forecast.

Four predicted growing profits, three expected to turn to profit and three projected lower losses.

Six companies forecast losses at the same rate while one company predicted a first loss.

Angang Steel Co Ltd, the listed arm of Anshan Iron and Steel Group Corp, generated 702 million yuan ($114 million) in profits from January to June, in stark contrast with a 1.98 billion yuan loss booked for the same period last year.

Beijing Shougang Co Ltd said its losses for the first half will likely narrow by 15 percent to 28 percent year-on-year, reaching between 250 million yuan and 300 million yuan

Qiu Yuecheng, senior analyst at 96369.net, an e-commerce research platform, said the price slump for iron ore, a key raw material for producing steel, helped steel companies to achieve a broader income.

From January to May, the nation's large- and medium-sized steel companies registered 1.49 trillion yuan revenue in sales, up 0.74 percent year-on-year, and profits increased 33.99 percent to 2.8 billion yuan during the same period, according to date from the China Iron and Steel Association.