Shandong Steel returns to net profit in 2025 amid costs management and M&A

Friday, 24 April 2026 12:11:56 (GMT+3)   |   Shanghai

Chinese steelmaker Shandong Iron and Steel Company Ltd has announced that it registered an operating revenue of RMB 67.253 billion ($9.8 billion) in 2025, down 12.11 percent year on year, while posting a net profit of RMB 106 million ($15.5 million) for the given year, shifting from loss to profit compared to a net loss of RMB 2.18 billion recorded in 2024.

In 2025, Shandong Iron and Steel leveraged its three-tier cost management and control system and achieved a year-on-year reduction of over RMB 70/mt ($10.2/mt) in comparable steelmaking costs. Meanwhile, the company accelerated the restructuring of its procurement system, leading to continued improvement in the procurement costs of raw materials.

In the first three months this year, Shandong Iron and Steel registered an operating revenue of RMB 14.726 billion ($2.15 billion), down 18.59 percent year on year, while posting a net loss of RMB 218 million ($31.8 million) in the given period.

In 2025, Shandong Iron and Steel produced 15.76 million mt of pig iron, 18.25 million mt of crude steel and 17.71 million mt of finished steel, up 44.59 percent, 22.14 percent and 15.23 percent, year on year, respectively, as it completed the full acquisition of Yinshan Section Steel Co., Ltd., a subsidiary of Laiwu Iron and Steel Group, securing the 100 percent ownership in Yinshan Section Steel.

As for 2026, Shandong Iron and Steel planned to produce 16.17 million mt of pig iron, 18.43 million mt of crude steel and 17.84 million mt of finished steel, signaling a very small gain compared to 2025. The company aims to register an operating revenue of RMB 67.5 billion ($9.8 billion) in 2026, also slightly lower than last year.


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