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

The former British Steel group, which employs around 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 the previous year.

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

The group has been hit by the slide in steel prices, which at the end of last year were at 20-year lows.

Prices have been hit by weak economic conditions in Europe and North America, exacerbated by over-production.

But it said the half-year had seen a turning point in the decline of carbon steel prices, and it had seen some modest recovery in European prices, and these had continued to improve despite the general economic uncertainty.

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

It is expecting additional price increases in Europe this year.

Chairman Sir Brian Moffat cautioned: "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 added the group had a "tough but busy" half year.

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

It also took the first step in the long-awaited sale of its aluminium operations, as it sold its 20 per cent stake in a Canadian smelter for £108m.

The group is aiming to reach agreement to sell the remainder of its aluminium assets by the end of this year.

Corus' remaining steel assets, in Germany, Belgium, Holland and China, are estimated to be worth about £700m and the firm would preferably sell them as one chunk rather than in parts.

It also sold its stainless steel interests to Finnish partner Outokumpu Oyj in July, for £356m.

The group is aiming to focus solely on producing carbon-steel, used to make products such as trains and car bodies.

Mr Pedder said: "We have had a tough but busy half year. We have made a lot of progress to shape the company for the future."

Corus added staff numbers fell to 51,600 from 52,700 six months previously.

The group's restructuring programme over the past two years is seeing it shed 10,000 staff of which 7,000 have gone already.

Two months ago it shed 780 jobs as it closed its Ebbw Vale site in south Wales, a move which ended 200 years of steel-making at the plant.