Jiangsu Province-based Shagang Co., Ltd. (Shagang), has issued its financial report for the first six months this year, stating that it registered an operating revenue of RMB 7.659 billion ($1.1 billion) in the given period, down 0.83 percent year on year, while it posted a net profit of RMB 104 million ($14.6 million), down 11.82 percent year on year.
The company stated that the slack demand in the domestic market, the slowdown in investment growth and other factors negatively affected the steel industry, which showed a state of “high production, high costs, low prices and low efficiency”, causing the steel industry to suffer large-scale losses in the first six months this year. Accordingly, Shagang’s performance in the January-June period was also affected.