On August 26, Hunan Province-based Chinese steel producer Valin Steel issued its results for the first six months of the current year, announcing sales revenues of RMB 19.94 billion ($2.92 billion), down 27.10 percent year on year. Meanwhile, the company suffered a net loss of RMB 523 million ($77 million) during the period in question, with a net loss of RMB 136 million ($20 million) for the second quarter this year - the third consecutive quarterly net loss the company has posted.
In its report Valin Steel stated that reduced steel prices in the context of the economic downturn had resulted in its financial losses.
However, the producer added that, starting from the month of May, China's economy indicated some recovery and so the company's losses began to decrease in line with climbing steel prices, with a profit being recorded for the month of June.
Founded in 1994, Changsha, Hunan Province-headquartered Valin Steel is ranked as China's tenth largest steelmaker. In the first half of 2009, this company produced 5..41 million mt of crude steel, 5.0 million mt of pig iron, and 5.11 million mt of finished steel.