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Steelmaking profits rebound sharply, challenges expected in H2 2025

Source: Mysteel Aug 28, 2025 11:30

In the first half of 2025, overall steel product prices declined in a volatile, range-bound pattern, with the composite price index falling by Yuan 286/tonne. The market's spot trading performance was weak, and arbitrage opportunities were limited. However, in contrast, the steel industry delivered impressive profit performance: cumulative total profits from January to May reached 31.69 billion yuan, exceeding the full-year profit level of 2024, with the first quarter becoming the first profitable quarter since Q1 2022.

This profit recovery was primarily attributable to declining raw material prices and disciplined production control by steel mills. Nevertheless, whether this high profitability can be sustained in the second half depends on multiple factors including raw material price volatility, downstream recovery, and steel production regulation, all of which have