ANGLO-Dutch steelmaker Corus has reported wider losses for the past half-year and said the timing of a recovery in its markets remained uncertain.

The former British Steel group, which employs about 4,200 staff on Teesside, reported pre-tax losses of £234m for the half-year to June 29 - mainly due to losses in its carbon steel operations.

The figure compares with losses of £230m in the same period of the previous year.

Corus, which has axed thousands of jobs amid tough conditions, said the future for steel prices was dependent on economic recovery.

The group has been hit by a slide in steel prices, which reached 20-year lows at the end of last year, due to weak economic conditions in Europe and the US, exacerbated by over-production.

But it said the half-year had seen a turning point in the decline in carbon steel prices.

Also, Corus said it had seen some modest, and continuing, recovery in European prices.

The price improvements reflect a combination of cuts in production, some rebuilding of stocks by customers and a modest improvement in consumption levels, Corus said.

It is expecting more price increases in Europe this year.

Chairman Sir Brian Moffat said: "As to the future, the pace and timing of economic recovery across major markets remains uncertain, not least the strength of the manufacturing sector in Europe and particularly in the UK. Further price developments will be dependent on these factors."

Corus chief executive Tony Pedder said the group had a "tough but busy" half-year.

In July, it announced the £2.7bn takeover of Brazilian steelmaker CSN.

It also sold its 20 per cent stake in a Canadian aluminium smelter for £108m and is aiming to reach agreement to sell the remainder of its aluminium assets this year.

Corus' remaining steel assets, in Germany, Belgium, Holland and China, are estimated to be worth about £700m and the firm would prefer to sell them together.

The group, which is aiming to focus solely on carbon-steel, sold its stainless steel interests to Finnish partner Outokumpu Oyj in July, for £356m.

Mr Pedder said: "We have made a lot of progress to shape the company for the future."

Staff numbers fell to 51,600 from 52,700 six months previously. Restructuring is seeing the group shed 10,000 staff over two years, of which 7,000 have already gone.