Anshan Iron and Steel, or Ansteel (000898.SZ), forecast it could reverse to losses of 888 million yuan during the first three quarters of this year, the company has released.
As one of China's largest steelmakers, Ansteel made a profit of 923 million yuan in the same period of 2014. The firm estimated to have lost 1.043 billion yuan in July-September, compared to a profit of 346 million yuan of a year earlier.
The northeast China-based steelmaker said the decline in steel prices accelerated while prices of iron ores and coal were relatively stable in the third quarter, squeezing out its profit margins.
The company strived to cut costs but failed to cover the losses brought by the deeper fall in steel prices, Ansteel said. Also, Ansteel admitted it lost 98 million yuan in the exchange transfer of funds under the RMB appreciation.
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