Forty-five Chinese steel conglomerates — including China Baowu, Ansteel, HBIS, and Shougang — have jointly issued an initiative through the China Iron and Steel Association (CISA) urging the industry to rein in production and reduce inventories, citing a market plagued by “strong supply, weak demand, low prices, and thin profits.”
According to a report by The Paper, CISA’s initiative outlines three measures: strictly enforcing output controls, maintaining voluntary production restraint to cut stockpiles, and fully utilizing industry price-monitoring personnel. The report notes that all three measures target the same underlying problem — the need for supply-side restraint.
Citing data from Chinese financial data provider Wind, the report states that 26 A-share-listed steel companies posted combined revenue of roughly RMB 555.7 billion (approximately US$78.3 billion) in the first half of the year, yet their combined net profit attributable to parent companies came to less than RMB 7 billion (about US$990 million). Of these, 11 companies posted losses, and seven earned less than RMB 300 million (about US$42 million) each.
CISA’s own figures show that major surveyed steel enterprises recorded total profit of RMB 58.4 billion (about US$8.2 billion) in the first half, down 5.5 percent year-on-year. Profit from core steelmaking operations alone fell 40 percent to just RMB 16.7 billion (about US$2.4 billion), with a sales profit margin of only 0.77 percent.
The initiative states that China’s steel industry has shifted from a growth phase into one of contraction and optimization. It says that since 2026, domestic steel demand has continued weakening while inventories remain elevated, driving prices down and putting significant pressure on producers’ operations.
Source: Central News Agency (Taiwan), September 15, 2026
https://www.cna.com.tw/news/acn/202609150360.aspx