Dynamic supply-demand factors to lift steel sector profits

As China's steel industry is facing declining demand and tightening margins, a balanced approach to production and a focus on emerging consumption sectors are likely to stabilize the market and ensure sustainable growth, a top industry association said.

"China's steel industry has entered a phase of 'stock optimization', with a persistent 'three-highs and three-lows' scenario — high output, high costs, high exports alongside low demand, low prices and low profitability," said Jiang Wei, vice-president and secretary-general of the China Iron and Steel Association (CISA), at the organization's third-quarter data release last week.

Throughout the first three quarters, domestic demand showed further signs of weakening, leading to a slight dip in iron and steel production.