Hunan Province-based Chinese steelmaker Valin LY Steel Co. has announced that it expects to achieve a net loss of RMB 269 million ($43.88 million) for the first half of the current year, compared to a net profit of RMB 36.92 million ($6.02 million) in the same period last year.
Valin LY Steel stated that the decline in finished steel prices in the first half this year amid sluggish steel market conditions caused the company to incur a net loss for the period. Meanwhile, through various methods to improve efficiency and lower costs, Valin LY Steel's operating performance improved in the second quarter compared to the first quarter. In the first quarter this year, Valin LY Steel recorded a net loss of RMB 192 million, indicating that it expects to register a smaller net loss of RMB 77 million ($12.56 million) for the second quarter.