China's steel manufacturers to face bankruptcy as industry profits dropped

Posted on October 25, 2022   |  

• In the 2nd half of the year, the steel manufacturing industry’s profitability dropped massively as, in July, less than 20% of companies declared a profit compared to the prior March, 80% of companies enjoyed profitability.
• Only 5 of the 25 domestically listed steel companies experienced a rise in their profits for the 1st half of the year.
• At present, China’s steel production capacity is 1.2 billion tons a year but a lack of interest from real estate developers caused many projects to shut down, reducing steel uptake and leading 29% of Chinese real estate companies to bankruptcy.