China's 71 major mills may post a loss of up to 12.77 billion yuan (US$1.86 billion) in November, China Securities Journal reported on December 29 citing anonymous sources.

The newspaper said 48 mills were in the red in November, accounting for over two thirds of the country's large and medium-sized steel makers.

Analysts attributed the loss to the high prices in iron ore and dropping steel prices.

China's steel industry has been one of the worst hit by the international financial crisis as demand has declined sharply.

(China Daily December 29, 2008)