Gansu Province-based Chinese steel producer Hongxing Steel, a listed subsidiary of Gansu-based steelmaker Jiuquan Iron and Steel Group (JISCO), has announced in its preliminary financial report for 2015 that it expects to record a net loss of RMB 6.96 billion ($1.06 billion) for the year, compared to the net profit of RMB 39.1337 million recorded in 2014.
JISCO Hongxing Steel stated that the imbalance between supply and demand in the Chinese domestic finished steel market, the ongoing declining trend of finished steel prices and the devaluation of the Chinese currency caused it to incur significant losses in the given year.