On October 14, Hunan Province-based Chinese steelmaker Hunan Valin Iron & Steel Co. (Hunan Valin Steel) has stated that it expects to record a net loss in the range of RMB 750 million-1.15 billion ($118.3 million-0.18 billion) for the third quarter of the year, compared to the net profit of RMB 24.05 million recorded in the same period last year. In addtion, the company expects a net loss in the range of RMB 900 million-1.3 billion ($142.0 million-0.21 billion) for the January-September period this year, compared to the net profit of RMB 43.06 million recorded in the same period of 2014.
Hunan Valin Steel stated that slowing economic growth, slack demand from downstream users in the steel market and the devaluation of the Chinese currency were the main reasons for the downtrend of finished steel prices, which caused the company to incur a loss.