Posted on 05 Nov 2025
Member mills of the China Iron and Steel Association (CISA) reported that their total profits for the first three quarters of this year reached Yuan 96 billion ($13.5 billion), representing a substantial 190% improvement compared with January-September last year, according to the association's release on its website.
The industry's better profitability was supported by a smaller decline in revenue compared to costs, CISA explained. For the first nine months, member steel mills reported a total operating revenue of Yuan 4.56 trillion, lower by 2.36% on year, while their operating costs dropped by 3.88% on year to Yuan 4.26 trillion, according to the release.
In response to the dual challenges of strong supply and weak demand, and a volatile external environment, China's steel industry has taken proactive measures, CISA observed, including optimizing supply, expanding demand and promoting transformation, which led to a steady decrease in crude steel output.
Over January-September, China's crude steel production slipped by 2.9% on year to reach 746 million tonnes, the association said quoting the data from National Bureau of Statistics (NBS). Total crude steel production for the whole year of 2025 is likely to be lower than that of 2024, it added.
China's steel exports increased during the first three quarters, with the total export volume rising by 9.2% on year to reach 87.96 million tonnes, while the import volume totaled 4.53 million tonnes, sliding by 12.6% from January-September last year, the release showed.
The country's steel sector has also made progress in energy conservation and emission reduction, CISA noted. In the first three quarters, total energy consumption of the member steel mills decreased by 0.54% on year, with a 0.6% decline in comparable energy consumption per tonne of steel and a 5.88% reduction in water discharge.
However, the decrease in steel consumption fell faster, with the country's apparent consumption of crude steel reaching 649 million tonnes during the first three quarters, sliding by 5.7% on year, the release showed. CISA anticipates that total consumption for the full year may contract from 2024, marking the fifth straight year of decline.
China's steel prices have also remained low this year. CISA's statistics showed that the average of its China Steel Price Index (CSPI) dropped by 9.6% on year during January-September, with the sub-index of long products falling by 10.2% on year, while that of flat products declined by 9.6% on year.
The association also warned that China's steel industry still faces many difficulties, such as the intensifying supply-demand imbalance – fuelled by abundant supply amidst softening demand – and weakening export prospects due to the multiple types of trade impediments.
From an international perspective, the weak global economic growth, frequent geopolitical and trade tensions and extreme policy uncertainty is undermining the global trade order and weighing on steel demand.
Meanwhile, during the latter part of this quarter China's steel industry will enter a seasonal lull in demand, CISA remarked, which means that the sector may face intensifying pressure to balance supply and demand. The association emphasized that domestic steel mills must further exercise discipline in controlling production and reduce inventory levels to prevent disorderly low-price competition.
Source:Mysteel Global
