Shanxi Province-based Chinese steelmaker Taigang Stainless Steel Co., Ltd (Taigang Stainless Steel) has announced that it registered an operating revenue of RMB 47.439 billion ($12.2 billion) in the January-June period this year, up 3.2 percent year on year, while it recorded a net profit of RMB 135 million ($19.9 million), down 65.53 percent year on year.
Taigang Stainless Steel's first-half performance is a microcosm of the steel industry's “winter”. The RMB 135 million profit and the 65.53 percent decline clearly illustrate the difficult position of steel enterprises caught between high costs and weak demand from downstream users.
While the company has been striving to improve the operation by adjusting its product mix and tapping internal potential, its profit recovery still faces considerable challenges unless the broader industry trend undergoes a fundamental shift.
