Chinese steel makers turned a net profit of US$4.97 billion in the first four months of this year, compared with a US$600 million loss during the same period last year, state media reported. However, the profit margin for the industry during the period was 3.6%, lower than the domestic industrial sector’s average profit margin, said Luo Bingsheng, vice president of the China Iron and Steel Association (CISA). He said that output costs for steelmakers will rise in the near future as iron ore prices rise and inventories decline. Domestic steel prices began dropping in mid-April, driven by inbalanced supply and demand. According to a report by the International Iron and Steel institute, gross output of steel worldwide grew 31.8% while demand only grew by 10.7%.
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