Posted on 27 Aug 2026
Jiangsu Shagang Co., the Shenzhen-listed arm of China's largest privately-owned steelmaker Shagang Group, reported net profits of Yuan 137.1 million ($20.4 million) for the first half of 2026, down 11.9% compared with the same period last year, according to the company's latest semi-annual report published on August 22.
In the first six months, Shagang's business revenue added up to Yuan 6.7 billion, marking a slight 1.9% on-year dip, according to the report. The overall gross margin of the company also narrowed by 0.37 percentage point on year to 8.47% in H1, Mysteel Global noted.
The company's recurring net profit, a more direct indicator of the underlying performance of Shagang's steel operations, came in at Yuan 92.7 million in H1, 13.4% lower on year. This accounted for 67.6% of its total net profit, down approximately 1 percentage point from H1 2025, pointing to weakening profitability in the company's primary business.
Shagang pinned the profit drop on "a tough industry landscape with persistent oversupply, weak steel prices, and squeezed margins, alongside fiercer rivalry in the subcategory of special steel." This analysis aligns with data from China's National Bureau of Statistics, which showed that the country's steel industry earned Yuan 31.8 billion over the first six months of this year, logging a steep 25% on-year decline, as reported.
The report also highlighted that the lucrative margins in the special steel sector have prompted a wave of ordinary steel producers to pivot into higher-value products via technology upgrades. This influx has intensified competition for Shagang and put further pressure on its margins.
In response to the market headwinds and evolving customer demand, Shagang pledged to optimize production processes, drive down production costs and inject more investment in R&D and tech upgrades in order to enhance the competitiveness of its steel products, according to the report.
Shagang Group operates five production bases across China: its Shagang headquarter and Huaigang in East China's Jiangsu, Dongbei Special Steel and Fushun Special Steel in Northeast China's Liaoning, and Anyang Yongxing in Central China's Henan.
Its key products include high-end special steel grades such as automotive steel, bearing steel, gear steel, spring steel, and heavy plate, which are widely used in automotive, engineering machinery, energy equipment, and marine engineering sectors. The group also produces gear products for commercial vehicles and new energy vehicles, while its advanced Castrip production lines give it a growing presence in ultra-thin strip products, Mysteel Global notes.
Source:Mysteel Global
