Source: China Industrial Economic Information Network

In the first half of the year, the China Iron and Steel Association (CISA) recorded a cumulative operating revenue of 2.9985 trillion yuan for key steel enterprises, down 5.79% year on year; operating costs amounted to 2.8055 trillion yuan, down 6.83% year on year; total profit reached 59.2 billion yuan, up 63.26% year on year; and the average profit margin stood at 1.97%, up 0.83 percentage points year on year.

In the first half of the year, the steel industry actively responded to the challenges posed by strong supply and weak demand, strengthened industry self-discipline, adjusted production rhythms, and achieved a steady decline in crude steel production, year-on-year improvement in economic benefits, and continuous improvement in environmental protection standards. The overall operational situation of the industry was better than expected. Self-discipline in controlling production and maintaining stable operations was the core reason for the improvement in industry profits. On the one hand, it maintained low steel inventories, a basic balance between supply and demand, and relatively stable steel prices. On the other hand, it led to a decline in demand for raw materials and fuels, and a downward shift in the cost center.

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