Bloomberg reported that Angang Steel Co, China largest Hong Kong traded producer of the alloy expects to swing to a loss in the first half after prices plunged.

Liaoning province based Angang said in an exchange filing, citing unaudited preliminary figures based on Chinese accounting standards that the loss was CNY 1.98 billion in the six months ended June 30 compared with a profit of CNY 220 million a year earlier. Angang had a loss of CNY 2.4 billion in the six months ended December 31.

According to the median forecast of 15 economists in a Bloomberg survey last month weakening exports and China curbs on property have eroded steel demand and prices. The economy in the second quarter probably grew 7.8%YoY the slowest expansion in more than three years.

Angang said in the statement that steel prices in the first half fell more than 12%YoY squeezing profits even as the company took measures to cut expenditure. The average price of hot-rolled coils, a benchmark product has fallen for 12 straight weeks, the longest streak since January 2003.

Source - Reuters

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