On October 15, Hebei Province-based Chinese pipe producer Xinxing Ductile Iron Pipes Co. (Xinxing Ductile Iron Pipes) has stated that it expects to record a net loss of about RMB 55 million ($8.7 million) for the third quarter of the current year, compared to the net profit of RMB 163.7 million recorded in the same period last year. In addition, the company expects a net profit of about RMB 294 million ($46.3 million) for the January-September period this year, compared to the net profit of RMB 671 million recorded in the same period of 2014.
Xinxing Ductile Iron Pipes stated that slowing economic growth in China and overcapacity in the domestic steel industry were the main reasons for the declining trend of finished steel prices, which squeezed the company’s profitability.