According to the report issued by China Iron and Steel Association (CISA) on August 6, in January-June this year the gross profit of China's 88 large and medium-size steelmakers - all CISA members - totaled RMB 7.5 billion ($1.21 billion), up RMB 4.3 billion ($0.7 billion) year on year. In particular, 63 of the steelmakers recorded profits in the given period, while 25 of the steelmakers saw losses, 7 less than the same period of last year, with a combined loss of RMB 7.7 billion ($1.25 billion), down RMB 3.3 billion ($0.53 billion) year on year.
According to the report, though finished steel prices have run in the history low levels over the past 10 years, even creating new low during the first half of the year, the profitability of China's steel industry shows a gradual rising trend from January to June as iron ore and coking coal prices have seen larger declines than finished steel prices.
Data showed in the first half of the current year, HRB400 rebar prices have seen an average decline of RMB 351/mt ($56.8/mt), or 10.01 percent, hot rolled plates prices declined by RMB 27/mt ($4.4/mt), or 0.76 percent, while 63.5 percent Indian iron ore dropped by RMB 37.5/mt ($6.1/mt), or 27.68 percent, domestic production iron ore decreased by RMB 220/mt ($35.6/mt), or 20.75 percent, and coking coal fell by RMB 190/mt ($30.7/mt), or 22.35 percent, all year on year.