Minguang Steel foresees big drop in net profit for Q1

Fujian Province-based Chinese steel company Sangang Minguang Iron and Steel Co. (Minguang Steel), subsidiary of Sanming Steel Group, has announced its estimated financial results for the first three months of 2012.
 
In the January-March period of the current year, the net profit of Minguang Steel is expected to be in the range of RMB 0-11.56 million ($0-1.84 million), down 80-100 percent as compared to the same period last year. The company said the estimated large decrease in its net profit is mainly due to the overall lackluster situation in the steel industry in the first quarter, ongoing low demand, reduced average sales prices of steel products on year-on-year basis and bad weather conditions.