It's reported that most Chinese steelmakers have suffered from high raw material costs and low profits in recent years.
It's analyzed that Chinese steelmakers have increased the production output due to the development of new plants and mergers in these years. However, the Chinese steelmakers' profits are likely to decrease due to overcapacity.
Chinese steelmakers gained about over RMB50 billion in the first half of this year; while, they paid RMB104 billion more on the raw materials.
Meanwhile, the sales profit rate from 77 units in China Iron and Steel Association (CISA) was 3.14% in the first half of this year, down by 0.4% year on year