Shandong Province-based Chinese steelmaker Shandong Iron and Steel Co. Ltd (Shandong Steel) has announced that it expects to record a net loss of RMB 1.35 billion ($0.22 billion) for 2014, compared to a net profit of RMB 158 million ($25.8 million) in 2013.
Shandong Steel stated that the severe oversupply in 2014 resulted in continuing slack demand for finished steel and significant declines in finished steel prices, contributing to declines in the company’s sales revenue and gross profit.