On March 26, Anhui Province-based Chinese steelmaker Maanshan Iron and Steel (Masteel) announced that in 2012 its operating revenue totaled RMB 74.4 billion ($11.96 billion), down by 14.33 percent year on year, while it recorded a net loss of RMB 3.863 billion ($621 million) compared to a net profit of RMB 69.578 million in 2011.
Masteel stated that the decline in operating revenue in 2012 was mainly caused by the decrease in steel product prices, while sales volumes remained stable. The company’s net loss was caused by the sharper fall in steel product prices as compared to raw material prices, and also by increased financial expenses and impairment of some assets.
Of the listed Chinese steel enterprises which have already issued their financial reports for 2012, Masteel ranks first in terms of the size of its net loss, followed by Anyang Steel with RMB 3.49 billion ($561 million) and Shaoguan Steel with RMB 1.95 billion ($313.5 million).