Gansu Province-based Chinese steelmaker Jiuquan Iron and Steel Group (JISCO) has announced that in 2013 its Gansu-based subsidiary Hongxing Steel recorded a net loss of RMB 2.338 billion ($383.28 million), as compared with a net profit of RMB 485 million in 2012, while it registered an operating revenue of RMB 94.57 billion ($15.5 billion), up 19.36 percent year on year.
JISCO stated that Hongxing Steel's net loss in 2013 was caused by continuing weak demand in the steel market, by declining steel prices and by increases in transportation costs.
As for 2014, Hongxing Steel plans to produce 9.1 million mt pig iron, 11.1 million mt crude steel and 10.88 million mt finished steel, while it expects an operating revenue similar to that achieved in 2013.