Chinese Steelmakers Report Crippling Losses From Weak Demand

Data show only 15 percent of Chinese steel mills remain profitable

A worker operates a crane to transport a block of steel into an oven during a government organised tour at a Tiangong International plant, makers of high quality steel and tools, in Zhenjiang in China's eastern Jiangsu province on Oct. 12, 2020. Hector Retamal / AFP via Getty Images

Chinese steelmakers have reported significant losses from weak demand and low prices. Data released on June 28 showed that only 15 percent of Chinese steel mills remain profitable, a 27 percent drop from the first quarter and a 59 percent plunge compared to the same period last year.

According to China’s National Bureau of Statistics, pig iron and crude steel declined 5.9 percent and 8.7 percent year on year; cumulative exports and imports of steel fell 16.2 percent and 18.3 percent, respectively; and imports of iron ore and concentrates dropped 5.1 percent.