In May 2023, the operating profit of the Chinese steel industry decreased by 20% compared to May 2022 – to reach 668.1 billion Yuan ($95.2 billion), and the index declined by 0.3% compared to April, according to data from the National Bureau of Statistics of China (NBS).

The decline in industry profits was due to a slowdown in steel demand. Meanwhile, prices of core steel products fell 4.4 – 4.7% in May.

Meanwhile, the industry posted a loss of 2.49 billion Yuan last month, compared to profits of 5.23 billion Yuan in April and 14.24 billion Yuan in May 2022.

Mining industry revenue rose 5.7% month-on-month to 36.25 billion Yuan, and the industry profit for May fell 28.6% year-on-year to 4.37 billion Yuan.

From January to May 2023, China’s steel industry recorded a decrease in operating income of 8.8% compared to the same period in 2022, to reach 3.37 trillion Yuan.

Industry losses since the beginning of the year amounted to 2.1 billion Yuan, while in January- May last year; steel-making enterprises received 80.2 billion Yuan in income. Thus, the steel sector became one of the two main industrial sectors in the country that suffered losses since the beginning of the year.

Mining industry revenue fell 9% yearly to 184.53 billion Yuan, and industry profit fell 41.9% yearly to 18.45 billion Yuan.

In May, 90.12 million tonnes of steel were produced, which is 7.3% less than in May 2022, down by 2.7% compared to April. Production of steel products decreased by 1.3% year-on-year and 1.2% every month, reaching 118.47 million tonnes.

From January to May 2023, China’s steel production increased by 1.6% compared to the same period in 2022 to 445 million tonnes. The production of steel products rose by 3.2% year-on-year in 5 months to 557 million tonnes.