Liaoning Province-based steelmaker Lingyuan Iron and Steel Co., Ltd., a subsidiary of Ansteel Group, has reported a net loss [1] of RMB 1.678 billion ($0.23 billion) for 2024, marking a significant increase from its RMB 681 million loss in 2023. The company’s operating revenue for the year stood at RMB 18.097 billion ($2.5 billion), reflecting a 10.94% decline compared to the previous year.
The steelmaker attributed its financial struggles to falling finished steel prices, which were impacted by oversupply in the market. This downward trend in pricing exerted pressure on the company’s performance, leading to a deeper financial setback.
Lingyuan Steel’s losses come at a time when the broader Chinese steel industry has faced fluctuating demand and pricing challenges. While some steelmakers have managed to recover, Lingyuan Steel’s financial results highlight the difficulties faced by certain players in the sector.
Industry analysts suggest that market saturation and economic uncertainties have contributed to the steelmaker’s declining revenue. To navigate the challenging landscape, the company may need to explore cost-cutting measures, efficiency improvements, or strategic shifts.
Sources:
[1] Lingyuan Steel posts net loss of RMB 1.678 billion for 2024 https://www.steelorbis.com/steel-news/latest-news/lingyuan-steel-posts-net-loss-of-rmb-1678-billion-for-2024-1385673.htm