Gansu Province-based Chinese steel producer Hongxing Steel, a listed subsidiary of Gansu-based steelmaker Jiuquan Iron and Steel Group (JISCO), has announced an estimated net loss of RMB 1.55 billion ($0.25 billion) for the first half of the current year, compared to the net loss of RMB 322 million ($51.9 million) recorded in the same period last year.
Hongxing Steel stated that slowing economic growth, the overcapacity in the steel industry amid slack demand for steel, and the declines in steel prices were the main reasons for the loss incurred in the first half.
As previously reported by SteelOrbis, Hongxing Steel had registered a net loss of RMB 366 million ($59.03 million) in the first quarter this year, while the latest figure for the first half indicates that a far larger loss was registered in the second quarter as compared to the first quarter.