Over 60% of A-share steelmakers warn of first-half losses as oversupply persists

Earnings
โดย 中国经营报·Read original
Summary · why it matters

A-share listed steel companies broadly came under pressure in the first half of 2026. Data from Hithink RoyalFlush shows that as of July 16, a total of 25 listed steel firms had disclosed their semi-annual earnings forecasts, with 16 reporting losses, accounting for more than 60 percent of the total. Ge Xin, deputy director of Lange Steel Research Center, said the domestic steel market is firmly in a state of oversupply, while raw material prices for iron ore, coking coal and coke remain elevated, keeping overall industry sentiment at a low level. Performance is clearly diverging. Small and medium-sized mills focused on construction long products such as rebar and wire rod are posting large losses, while leading enterprises with exposure to high-end flat products, stainless steel and military-grade special steel are holding the line on profitability. Angang Steel expects a first-half net loss attributable to the parent of 2.047 billion yuan, Bengang Steel Plates warns of a loss of 1.89 billion yuan, and Anyang Iron and Steel has swung from profit to a loss of nearly 1.2 billion yuan. Valin Steel, Taigang Stainless Steel and Liuzhou Iron and Steel remain profitable but with year-on-year declines in net profit, while Hangzhou Iron and Steel has turned a loss into a profit. Ge Xin noted that the steel industry will enter its traditional off-season in the second half of the year, leaving limited room for most steelmakers to repair earnings. However, once the concentrated release of high-grade iron ore from Guinea's Simandou project materialises and domestic policies to ensure coal mine supply and boost output take effect, raw material cost pressure is expected to ease.

Impact on stocks 7

Others± Mixed · 7 stocks
Angang Steel Co Ltd Class A
000898
▼ NegativeSupplyrelevance

Angang Steel expects a first-half net loss of 2.047 billion yuan due to oversupply and high raw material costs.

Hunan Valin Steel Co Ltd
000932
▼ NegativeSupplyrelevance

Valin Steel remains profitable but with year-on-year decline in net profit due to industry oversupply and high raw material costs.

Anyang Iron & Steel Inc
600569
▼ NegativeSupplyrelevance

Anyang Iron & Steel swung from profit to a loss of nearly 1.2 billion yuan due to oversupply and high raw material costs.

Liuzhou Iron & Steel Co Ltd
601003
▼ NegativeSupplyrelevance

Liuzhou Iron & Steel remains profitable but with year-on-year decline in net profit due to oversupply and high raw material costs.

Hang Zhou Iron & Steel Co Ltd
600126
▲ PositiveSupplyrelevance

Hangzhou Iron & Steel turned loss into profit, and the article mentions future easing of raw material costs from Simandou and coal supply policies.

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