CISA calls for output discipline to sustain strong Q1 profits

Major member steel mills of the China Iron and Steel Association (CISA) posted a combined profit of Yuan 21.58 billion ($3 billion) for the January-March period, surging 108% year on year, despite a 6.6% decline in total revenue to Yuan 1.44 trillion, CISA reported at its latest quarterly briefing.

The strong earnings performance in the first quarter came against the backdrop of persistent oversupply and weak demand in China's steel sector. According to CISA Vice Chairman Jiang Wei, member mills' improved profitability was largely attributed to controlled output levels and low inventories. He further explained that the prices of