In the January-June period of the current year, Chinese large and medium-sized steelmakers who are members of the China Iron and Steel Association (CISA) achieved an aggregate gross profit of RMB 53.242 billion ($7.8 billion), up by 367.12 percent compared to RMB 41.844 billion in the same period last year, as announced by the CISA. Leading Chinese steelmakers including Baowu Group and Jiangsu-based Shagang Group saw sharp rises in their profits, while Xinjiang Autonomous Region-based Bayi Iron and Steel Group, Guangdong-based Shaoguan Iron and Steel Co. and Sichuan-based Pangang Group saw a return to profitability in the given period.
CISA chairman Jin Wei stated that elimination of outdated capacity and low-grade construction steel has contributed a lot to the improved performance of China’s steel industry. He went on to say that finished steel prices are almost in line with those in 1994, with the average profit for finished steel production at RMB 160/mt ($23.5/mt), adding that some steelmakers are still incurring losses. The CISA chairman stated that China’s steel industry still has a long way to go in terms of upgrading and achieving a better performance.