According to China's Ministry of Industry and Information Technology (MIIT), in 2010 medium and large-scale steelmakers in China posted an aggregate net profit of RMB 89.7 billion ($13.6 billion). The top 20 steelmakers in the country accounted for an 83 percent share of the RMB 89.7 billion figure, with Baosteel alone accounting for 26 percent. Most other steelmakers posted losses or made only small profits. The net profits of medium and large-scale steelmakers in China are currently on a downward trend, with their profit margin declining from 7.26 percent in 2007 to 2.91 percent in 2010.
Due to rising raw material prices, the production costs of medium and large-scale steelmakers in China increased by 30.7 percent in 2010, constituting the main cause for the shrinkage of domestic steelmakers' profits according to the MIIT.