Angang Steel H1 profits dive 998%

BEIJING -- Angang Steel Company Limited, China's leading steel producer, reported a loss of 1.98 billion yuan ($314 million) in the first half this year, down 998 percent from the same period last year.

The steel producer's revenues dropped 15 percent from a year earlier to 39.4 billion yuan in the first six months of the year, while it saw a loss of 0.27 yuan per share, according to the company's mid-year report released late Monday.

The losses were incurred by weak steel product prices. The decline in raw materials costs failed to cover losses brought about by steel product prices, according to the report.

China's domestic steel composite price index dropped 14.08 percent to 115.48 points at the end of June, down 4.7 percent from the first quarter. Average imported iron ore prices, which cover costs, insurance and freight, stood at $138.7 per ton, despite a decline of 13.8 percent year-on-year.

The company's share price retreated 2.74 percent Monday to close at 3.55 yuan per share in Shenzhen.

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