China’s steel makers expect profits to bounce back for the first half of the year to mirror rising steel prices, reported Caixin.
Strong demand for steel amidst production cuts have resulted in high steel prices, reflected in the price index monitored by the China Iron and Steel Association (CISA). According to the CISA, steel giants reported a combined profit of RMB 184.3 billion within the first six months of 2021, up 286% year on year.
According to the National Development and Reform Commission, crude steel production surged 13.9% to 473 million tons during the first five months despite Beijing’s production cuts. However, mills will likely continue to face pressures to shrink outputs in the second half of the year.