Apr. 20, 2011 (China Knowledge) - China's Hunan Valin Steel Co Ltd<000932
>, which is engaged in the smelting, manufacture and sales of iron and steel products, predicted that its net loss may narrow to between RMB 180 million and RMB 200 million in the first quarter of this year, sources reported.
The company said in a statement that the net loss is mainly due to sharp price increase in raw materials, and the profit margin of some products, such as seamless steel, remained low. The company's new projects have yet started making profits.
In the first quarter of 2010, the company recorded a net loss of RMB 274 million.
On Nov. 13, 2010, Hunan Valin and inked a strategic cooperation framework agreement in Changsha
Province. The two companies will cooperate in capital operation, coking coal resources, power projects, steel supply and so on.