On April 26, Guangdong Province-based Chinese steel rolling and processing company SGIS Songshan Co., an affiliate of Guangdong-based Shaoguan Iron and Steel Co. (Shaogang), announced in its financial report for 2014 that it registered a net loss of RMB 1.388 billion ($0.244 billion) for the given year, compared to a net profit of RMB 101 million ($16.3 million) in 2013. Meanwhile, the company achieved an operating revenue of RMB 19.497 billion ($3.14 billion) in 2014, up 1.7 percent year on year.
In 2014, SGIS Songshan produced 6.18 million mt of pig iron, up 0.32 percent, 6.28 million mt of crude steel, up 1.73 percent, and 6.15 million mt of finished steel, increasing by 4.06 percent, all year on year.
The company stated that the demand for steel was slack in 2014 due to China's slow economic growth in the given year. Meanwhile, the declines in prices of iron ore and coal prices reduced the support for steel prices, thereby exerting a negative impact on steelmakers' operations.