HONG KONG, Oct 12 (Reuters) - China steelmaker Angang Steel Co Limited said on Friday it could make a loss of RMB3.17 billion ($505 million) for the first nine months of the year.
Angang Steel, which has a market value of $4 billion, said the loss resulted from a substantial decrease of around 14 percent in the price of steel products compared to the year earlier period, when the company made a RMB239 million profit.
Steelmakers globally are facing slowing demand because of the weak economic climate. In China, slowing economic growth has hit demand for new ships and construction. An industry official told Reuters last month that more than a third of China’s iron ore mines were idle due to depressed prices.
China’s biggest listed steelmaker, Baoshan Iron & Steel Co , said in September it has suspended output at a 3 million tonne-a-year plant in Shanghai as steel prices were near three-year lows.
$1 = 6.2770 Chinese yuan Reporting by Stephen Aldred. Editing by Jane Merriman