Although the ferrous metallurgy and rolling industry remained profitable for three consecutive months in April-June, overall profitability deteriorated sharply compared to a year earlier. The industry's path to revenue recovery remains a long one, as the market continues to struggle with weak construction demand, uneven production activity, and ongoing pressure on steel prices.
Profits fall despite lower production volumes
In January-June, the revenue of China's metallurgical and rolling industry amounted to 3.68 trillion yuan ($513 billion), which is 0.6% less than in the same period last year. Operating expenses declined at a slower pace, falling 0.4 percent to 3.50 trillion yuan ($488 billion), while total profit fell 25 percent to 31.77 billion yuan ($4.4 billion), down 14.51 billion yuan ($2 billion) from the same period last year.
The monthly data showed some improvement. The industry's profit reached 13.6 billion yuan ($1.9 billion) in June, which is 3.01 billion yuan ($420 million) more than in May, although it remained at 990 million yuan ($138 million) below the level of June 2025. A month-on-month improvement is unlikely to reverse the broader downward trend in profitability.
The industry is increasingly relying on production discipline to
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