General Steel issues 1st-half revenue prediction
NEW YORK (AP) — General Steel Holdings Inc. said Thursday that it expects its revenue for the first half of the year to total about $1.4 billion.
The Chinese steel maker also said that it expects its production volume to total about 2.4 million metric tons.
In May, the Beijing-based company reported revenue of $710.5 million for the first three months of the year. The new forecast implies revenue of about $689.5 million for the April-to-June period.
General Steel reported first quarter production volume of 1.2 million metric tons. The outlook implies flat production rates for the second quarter.
While the Chinese steel market has slowed, demand in its primary market of Western China has remained stable, helped by large-scale, government-sponsored housing and infrastructure investment projects, the Beijing-based company said.
General Steel also said that while the cost of both iron ore and other raw materials for steel products remains volatile, it expect to offset price fluctuations with cost cuts an efficiency improvements.
General Steel shares added 4 cents, or 3.2 percent, to $1.25 in light morning trading.