According to data from China’s National Bureau of Statistics (NBS), the sector’s total profits decreased by more than %50 year on year during the first seven months of 2026. In July, the sector returned to losses after recording profitability in the previous period.
The decline in the sector was driven by differences in end use demand. While demand for flat steel products from manufacturing sectors such as shipbuilding, automotive and machinery remained stable, the prolonged slowdown in the real estate sector significantly weakened consumption of long steel products and rebar.
Despite cuts in pig iron and crude steel production, high raw material costs continued to put pressure on producer margins. Seasonal inventory replenishment activities toward the end of August could reduce losses per ton to some extent, while the structural weakness in the real estate sector is expected to limit any significant recovery.
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