UPDATE 1-China’s Angang parent puts U.S. plan on hold

* Angang sees possible loss in Q3 on high costs, low prices

* Company says Q4 expected to be better than Q3
(Adds details)

HONG KONG, Aug 19 (BestGrowthStock) – Angang Steel Co Ltd (0347.HK: )
(000898.SZ: ) said its state-owned parent has put its plan to
invest in a U.S. steel plant on hold after facing opposition from
U.S. lawmakers.

Chen Ming, vice-chairman of Hong Kong- and Shenzhen-listed
Angang, said on Thursday that the company’s parent had not yet
invested in the project, so it would not incur any loss from the
development.

Anshan Iron & Steel Group said in May that it had agreed to
take a 14 percent stake in a $175 million rebar facility under
construction in Amory, Mississippi by Steel Development Co, a
U.S. start-up.

“This is all because of the United States and we believe the
chance for the project to be approved was small,” Chen told
reporters at a results news conference in Hong Kong.

A bipartisan group of 50 U.S. lawmakers called last month for
an investigation, expressing deep concern that the investment
threatened U.S. jobs and national security. [ID:nN02241776]

“Angang group hopes to expand overseas and this strategy will
not change,” Chen said.

At home, competition in the steel industry is keen as a
result of oversupply.

High costs for iron ore and fuel, and low steel prices could
push Angang Steel back to a loss in the third quarter after it
reported a profit of 2.77 billion yuan ($408 million) for the
first half of 2010 against a loss of 1.55 billion yuan a year
earlier, Chen warned.

Angang’s first-half earnings were boosted by higher volume
and better selling prices of steel products.

For results statement please click
http://www.hkexnews.hk/listedco/listconews/sehk/20100817/LTN20100817649.pdf

“This will be the most difficult quarter for us this year and
may end up with a loss, but we are trying our best to seek a
balance,” he said. “The fourth quarter is likely to be better
with more stable iron ore and steel prices.”
($1=6.791 Yuan)
(Reporting by Alison Leung; Editing by Chris Lewis)

UPDATE 1-China’s Angang parent puts U.S. plan on hold