China’s steel mill profitability has risen to its highest level since August,
with Mysteel reporting that 64% of 247 mills are currently profitable, the
second-highest reading since October 2024. The improvement is driven by stronger
downstream demand, supply constraints from environmental curbs and maintenance,
and rising exports as overseas prices increase. However, analysts including
Steven Yu of Mysteel and HSBC Holdings Plc warn the recovery may be temporary,
citing weak underlying demand and a supply-demand imbalance likely to keep
margins under pressure into 2026.
