Shandong Steel returns to net profit in 2025 amid cost management and mergers and acquisitions

The Chinese steel company Shandong Iron and Steel Company Ltd announced that in 2025 it recorded operating revenue of 67.253 billion yuan ($9.8 billion), which is 12.11% less than in the previous year, and net profit of 106 million yuan ($15.5 million) for this period. year, moving from loss to profit compared to a net loss of 2.18 billion yuan recorded in 2024.

In 2025, Shandong Iron and Steel used its three-tier cost management and control system and achieved a reduction in comparable steel production costs of more than 70 yuan/ton ($10.2/mt) year-on-year. Meanwhile, the company accelerated the restructuring of its procurement system, which led to further improvements in raw material procurement costs.

In the first three months of this year, Shandong Iron and Steel recorded operating revenue of 14.726 billion yuan ($2.15 billion) This is 18.59% less compared to the same period last year, and the net loss for this period amounted to 218 million yuan ($ 31.8 million).

In 2025, Shandong Iron and Steel produced 15.76 million tons of pig iron, 18.25 million tons of steel and 17.71 million tons of finished steel, which is 44.59 percent, 22.14 percent and 15.23 percent more than in the previous year, respectively, as it completed the full acquisition of Yinshan Section Steel Co., Ltd., a subsidiary of Laiwu Iron and Steel Group, securing 100% ownership of Yinshan Section Steel.

As of 2026, Shandong Iron and Steel planned to produce 16.17 million tons of pig iron, 18.43