The China Iron and Steel Association (CISA) has stated that in October this year the aggregate net profit of its member steel enterprises totaled RMB 300 million ($48 million), marking a return to profit following the aggregate net loss recorded in September and thereby indicating a recovery in China’s steel sector in October. 26 percent of the 74 large and medium-sized CISA member steel enterprises posted a net loss in October, compared to 45 percent in September.
The total net loss of CISA member steel enterprises in September is anticipated to be worse than the aggregate net loss figure of RMB 5.5 billion ($883 million) initially issued by the CISA, according to CISA vice president Liu Zhenjiang. Speaking on November 24, Mr. Liu stated that the average net loss recorded by China’s steelmakers in their steel production in September was RMB 70/mt ($11/mt), while some mills recorded net losses of over RMB 300/mt ($48/mt).