Steel companies report losses in the first half

Up to 70 percent of China's listed steel companies said they are expecting losses for the first half of the year and predicted declining profits in the second half, the Securities Daily reported.

Angang Steel Co Ltd said it expects losses of about 2 billion yuan ($316.20 million) for the first six months.

Beijing Shougang Co Ltd, estimated losses of 250 million yuan to 350 million yuan during the first six months.

Wuhan Iron and Steel Group Corp said its net profit dropped by more than half and Jiangsu Shagang Group Co Ltd said it expects a 60 to 90 percent profit decline in the first half.

Angang Steel said the losses are mainly due to falling steel prices, a 12 percent drop compared with the same period last year.

The China Steel and Iron Association said the country's steel companies registered losses during the first five months of the year of 11.75 billion yuan, about 27 times more than in the same period last year.