On August 1, Jiangxi Province-based Chinese steelmaker Xinyu Iron and Steel Co. issued its financial results for the first half of the current year, announcing an estimated net loss of RMB 350-400 million ($54.86-62.696 million). For the corresponding period of last year, Xinyu Steel had posted a net profit of RMB 221 million ($34.64 million).
Xinyu Steel stated that steel demand was sluggish in the period in question and that the decline in steel prices exceeded the decrease recorded in raw material prices. While the steelmaker implemented measures to cut costs and improve efficiency, it still suffered a loss in the first six months this year due to the negative market situation.