Panzhihua New Steel and Vanadium forecast it would make a net loss of 1.4 billion yuan and have a basic earning per share of minus 0.24 yuan in 2009. Reconstruction from the Wenchuan earthquake has brought significant effect on the mill’s operations in Chengdu and Jiangyouzi. The company also blamed the losses on a sharp drop in the prices of seamless pipe, vanadium, titanium and sheet products, a relatively firm cost of raw materials and the increased debt of 34.62 billion yuan incurred from a stock capital-adding deal in July 2009 to absorb the floating assets in Panzhihua Steel Group, Panzhihua Steel Co Ltd, Panzhihua Chengdu Steel and Panzhihua Changcheng Special.