77 Steel Enterprises in China Achieved Merely 2.9% Profit in Q1

Impacted by the increasing price of iron ore in the global market, the profit of 77 Chinese medium-to-large sized steel enterprises was merely 2.91% in Q1, according to China Iron & Steel Association (CISA). The industry is suffering high cost and low return. Statistics released by CISA shows these 77 enterprises’ profit in Q1 was RMB24.46 billion and the profit from sale was merely 2.91%, 3.29% lower than other Chinese enterprises. The steel industry shows low efficiency. Among the 77 steel enterprises, 10 appear revenue loss of up to 13%, reaching RMB0.65 billion. The operation of enterprises is in difficulties.