China Angang Steel Posted Revenue Deficit in 2011

2012-02-01

In recent years China steel industry has experienced a great decline, many steel mills have suffered either substantial financial losses or great declines of profits. Angang Steel Co., Ltd. recently announced its deficit in 2011 is estimated to reach RMB2.151 billion mainly due to the greater hike of crude fuel price over steel price and the repair of blast furnaces. In particular, the steel price substantially fell in Q4 2011 and the main crude fuel price still remained high; therefore, Angang suffered a deficit in the Q4 and the result further led to a full year loss.  
   
In addition, another leading steel producer in China, Baosteel, also reveled in its short business report that the company still obtained the profits of RMB7.302 billion in 2011 but the profits fell 43.35% compared to that of the previous year. China steel industry generally considered the downtrend in the industry would continue in 2012.