March 25, 2016 / 10:25 AM / 4 years ago

China's Dongbei Special Steel says it may be unable to make bond payment

SHANGHAI, March 25 (Reuters) - Dongbei Special Steel Group Co Ltd may be unable to repay 852 million yuan ($131 million) of principal and interest on short-term commercial paper maturing Sunday, the unlisted firm said on Friday in a statement posted on the website of one of China’s main bond clearing houses.

The firm, based in northeast China, cited tough conditions in the steel industry and strong pressure on sales as reasons for the potential default.

Overcapacity and volatile prices have resulted in a number of Chinese steel firms running into trouble over the past year and a half.

On Saturday, financial magazine Caixin reported that Tianjin-based Bohai Steel Group Co Ltd may be unable to make full repayment on 192 billion yuan of debt. ($1 = 6.5100 Chinese yuan renminbi) (Reporting by Nathaniel Taplin; Editing by Christopher Cushing)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below