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60% of steel makers report losses in Oct
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Dwindling demand in both the domestic and overseas markets has sunk nearly 60 percent of Chinese steel companies into the red since October.

The 42 loss makers reported a combined shortfall of 7.8 billon yuan (US$1.14 billion) in October. This was the first time for some of these companies to report a loss.

"The Chinese steel industry has come in for a hard time." said Qi Xiangdong, deputy secretary general of China Iron and Steel Association. A turnaround is not expected until the second quarter of 2009, he said.

Analysts said the latest round of bank interest rate cuts and the depreciation of the renminbi against the US dollar has helped restore some confidence in the future of the steel manufacturing industry.

(China Daily December 6, 2008)

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