The China Iron and Steel Association (CISA) has stated that in the first five months of the current year the aggregate net profit of large and medium-sized steel enterprises in China amounted to only RMB 2.533 billion ($400.8 million), down 94.26 percent year on year, while in the given period the aggregate net loss of loss-making Chinese steel enterprises totaled RMB 11.749 billion ($1.86 billion), up 27.38 times compared with the same period last year.
Looking at the financial results issued by some Chinese steelmakers for the first half of the current year, Angang saw an estimated net loss of RMB 2 billion ($316 million) for the period, while Shougang Group and Liaoning-based Lingyuan Iron and Steel (Linggang) reported net losses of over RMB 200 million ($31.6 million). Meanwhile, Shagang Group and WISCO witnessed decreases of around 50 percent in their net profits for the first half of the current year.