Reuters reported that Japanese trading house Mitsui & Co is expected to post a lower profit for the year ending March 31st as slower growth in China affects its iron ore business.

The Japanese business daily said that the company is expected to report a net profit of JTY 320 billion down by 26% from a year earlier.

The Nikkei reported that Mitsui had earlier projected net income of JTY 400 billion.

The Nikkei said that steelmakers in China, which is the largest consumer of iron ore, have cut production amid sluggish domestic demand and lower exports to Europe, leading to lower imports of the raw material. This has hurt earnings at Brazilian mining company Vale SA, in which Mitsui has a stake.

Source - Reuters

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