Key facts
- China's ferrous metal smelting and rolling sector posted a gross profit of RMB 24.34 billion in January to September 2026, down 73.3% year on year, the National Bureau of Statistics said.
- The sector recorded a gross loss of RMB 5.09 billion in September alone, the National Bureau of Statistics said.
- Profits at major Chinese steel companies fell 27.4% in the first nine months of 2026, Caixin reported, as steel prices hit a decade low for the period.
- Shandong Iron & Steel Group said it was being squeezed from both ends by falling market prices and rising materials costs, Nikkei reported.
Pressure on China's steel sector has intensified as producers face weak domestic demand and rising costs, especially for coal, Nikkei reported on November 2. Shandong Iron & Steel Group said it was being squeezed from both ends, referring to falling market prices and higher materials costs.
The National Bureau of Statistics said on October 27 that the ferrous metal smelting and rolling sector recorded a gross profit of RMB 24.34 billion ($3.6 billion) in January to September 2026, down 73.3% from a year earlier. In September alone the sector posted a gross loss of RMB 5.09 billion ($760 million), the bureau said.
Caixin reported on October 30 that profits at major Chinese steel companies fell 27.4% in the first nine months of 2026 as demand weakened faster than production, pushing inventories higher and steel prices to a decade low for the period. The outlet said the decline reflected sluggish domestic consumption and a growing number of trade disputes targeting Chinese steel exports.
Nikkei said the pressure raised the prospect that Chinese producers would push more output abroad, which could add to trade tensions.