Steelmakers forecast gloom

Listed steel mills in China are expected to report either declining profit growth or losses for the first half-year period due to sluggish demand, lower steel prices and over capacity.

Twenty-seven listed steel firms have forecast a less-than-rosy performance in the first-half; with 15 companies forecasting losses and 12 predicting declining profits compared to the same period in 2008.

The 27 steel mills, cumulatively, expected to post a loss of 9.64 billion yuan, compared to a profit of 36.3 billion yuan during the same period last year.