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China’s steel sector total profit declined by 5.1% in the first quarter

Jiang Wei, Vice Chairman and Secretary General of the China Iron and Steel Association (CISA), shared data on the sector’s performance for the first quarter of 2026 in a statement on March 29.

China’s steel sector total profit declined by 5.1% in the first quarter

According to the announced data, the cumulative operating revenue of major steel enterprises increased by 1.2% year-on-year during the period, reaching 1.4895 trillion yuan. Operating expenses also rose by 1.5% to 1.4062 trillion yuan. This parallel increase in revenues and costs indicates that the overall operational scale of the sector was maintained.

However, a weakening in profitability was observed. Total profit in the first quarter declined by 5.1% year-on-year to 21.7 billion yuan. The sales profit margin was reported at 1.4%, indicating that the sector continues to operate with low margins.

The data shared by Jiang Wei showed that rising cost items, in particular, put pressure on profitability, while the increase in operating revenues remained limited in offsetting this pressure. The statement also noted that these figures for major steel producers reflect the overall trend in the sector.

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