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

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

“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