China's Angang Steel Co Ltd said today (Tue) that it expects its 2008 net profit to fall 55 percent to about 3.42 billion yuan ($500 million) due to high raw material costs and slumping steel prices. Analysts said the forecast was within expectations.
The sharply lower profit was due to price rises in raw materials and fuel, high fixed input but low output in its newly-built production zone and a provision of 1.8 billion yuan for steel product stockpiles devaluing, Angang said.
Chinese steel makers are grappling with a sharp decline in earnings as steel demand weakens in the world's top metal consuming country as a result of fallout from the global financial crisis affecting the real economy.
Source: Reuters
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