Hunan Province-based Chinese steelmaker Valin Steel has posted a net loss of RMB 401 million ($58.9 million) for the first half of the current year.
According to Valin Steel, the loss was caused by the continuing impact of the international financial crisis, national macroeconomic policy, the significant fluctuation of steel prices and the hike in iron ore prices. Meanwhile, according to another source, the main reasons of the loss also include reduced steel pipe exports and ineffective release of hot rolled coil production capacity.