Profits of Chinese steel companies grow 86% in the first three quarters

China's steel industry increased profits in January-September, along with improvements in environmental protection and a reduction in leverage, according to industry association data.

According to the China Metallurgical Sector Association (CISA), the industry's total profit grew 86% year on year, reaching about 230 billion yuan (about $ 33 billion).

Steel companies' profit ratios have hit the average at large industrial enterprises in China, changing the situation when the country's steel companies are suffering from low profits and shortages, the association said.

Liu Zhenjiang, CISA general secretary, attributed the industry's rise to rising demand for steel and the robust price of iron stone.

Steel output rose 6.07 percent and 7.21 percent in the past three quarters, respectively, while steel inventories remained low, reflecting strong demand and demand, Liu said.

The association's data show that prices for iron stone, a raw material for steelmaking, have declined over the past nine months, contributing to profits for steel companies.

Liu said Chinese steelmakers are attaching more importance to pollution control and less leveraged funds after they have made more profits.

CISA data show the efforts of metallurgical companies to reduce emissions of pollutants, while the volume of wastewater emissions decreased by 1.13 percent year on year.

The industry's asset-to-liability ratio continued to decline amid efforts by steel companies to pay off debt, which stood at 66.11 percent at the end of September, up 3.91 percent from the previous year, CISA said.