On April 12, Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co, a subsidiary of Taiyuan Iron and Steel Group (Taiyuan Steel or TISCO), issued its financial results forecast for the first quarter of the current year. Accordingly, Taigang Stainless Steel expects a net profit in the range of RMB 135-225 million ($21.43-35.71 million) for the first quarter, down by 50-70 percent year on year.
Among the reasons for the decrease in net profit, Taigang Stainless Steel cites the continuing sluggishness of the global economy in the first quarter, the slowing growth of the domestic economy, softening demand in the steel market, overcapacity in the iron and steel industry, low levels of steel product prices and high costs of raw materials.