* Sees Y70 bln loss in FY15/16, vs prior f'cast of Y190 bln profit
* Predicts its first group net loss since 1947
* Books Y260 bln writedowns on copper, LNG and other assets (Recasts with details)
TOKYO, March 23 (Reuters) - Japan's Mitsui & Co 8031.T on Wednesday predicted its first loss for its financial year ending March 31, as slumping prices of metals and energy forced it to book a massive 260 billion yen ($2.32 billion) in writedowns.
Like international oil majors and mining companies, Japanese trading firms have been caught flat-footed by the rout in commodities brought about by softening demand from top consumer China where economic growth has slowed.
The Tokyo-based company said it now expected a net loss of 70 billion yen for the current year, against an earlier forecast for a profit of 190 billion yen, hit by hefty one-off losses in its copper and other resource assets.
The loss will be its first consolidated net loss since its establishment in 1947, a spokesman said.
The 260 billion yen in writedowns include a 115 billion yen impairment loss on its copper mines in Chile to reflect a revision to its long-term outlook for the price of the metal and a 40 billion yen loss on the Browse liquefied natural gas (LNG) project in Australia.
Its partner Woodside Petroleum WPL.AX , along with other stakeholders, have shelved plans to build the $30 billion Browse floating LNG project off Australia in the face of global oversupply, spelling the end of an era of mega LNG projects. other writedowns include losses on its Brazilian resource unit, coal mine in Australia as well as overseas electric power operations.
Despite its loss estimate, Mitsui maintained its dividend of 32 yen per share for the current year.
Shares in Mitsui closed down 1 percent at 1,405 yen on Wednesday, before the revision was announced.
Markets for everything from oil to iron ore have been hit hard by oversupply and faltering demand as growth slows in China, the world's No.2 economy, driving losses on assets held by Japanese trading houses.
In February, Sumitomo Corp 8053.T more than halved its net profit forecast to 100 billion yen for the current year due to an about 170 billion yen in writedowns on resource assets. Corp 8058.T has not recorded writedowns, but Chief Financial Officer Shuma Uchino warned last month the company would "make careful evaluation of our resource assets at the end of the business year to reflect falling resource prices". spokesman at Mitsubishi, which is also a partner in the Browse project, said on Wednesday the company is reviewing its finances to see what impact the cancellation will have.
($1 = 112.3200 yen)