
China Steel
China Steel Australia Ltd expects to record a loss for 2008/09 but hopes to be ultimately profitable.
Shares in China Steel Australia Ltd soared after the company said it commenced production at its merchant pig iron (MPI) plant in China’s Shandong Province last week.
China Steel shares were up eight cents, or 100 per cent, at 16 cents at 1319 AEST on Wednesday on a volume of almost 980,000 shares.
Production at the plant had been delayed by a few weeks due to prolonged price negotiations for the raw materials.
MPI is made into steel using electric arc furnaces or is cast into articles such as stoves, radiators, lamp-posts and rails in foundries.
China Steel could potentially become one of the larger and more efficient producers of MPI in China, chief executive Chen Lidong said in a statement on Wednesday.
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