Valin Steel issued a profit forecast, estimating first-half 2026 net profit at 200 million to 300 million yuan, a year-on-year decline of 82.84% to 88.56%. The company said the steel industry remains in a deep adjustment, with prominent supply-demand imbalances and high raw material prices squeezing profit margins. In addition, a one-off expense from back taxes and late payment penalties, including 452 million yuan in back taxes and 244 million yuan in late payment penalties, dragged on current results. After absorbing the impact of the back taxes, first-half total profit is expected to be 750 million to 950 million yuan. Chongqing Iron and Steel earlier also forecast a half-year loss of 179 million yuan, similarly affected by industry oversupply and rising costs. A CICC research report noted that steel industry profits in 2026 are unlikely to see significant improvement, but differentiated output controls and domestic substitution of high-end materials may bring structural opportunities.
Hunan Valin Steel Co LtdFirst-half net profit forecast to drop over 80% due to supply-demand imbalance, high raw material costs, and back tax expenses.
Chongqing Iron & Steel Co Ltd Class AForecast half-year loss of 179 million yuan due to industry oversupply and rising costs.
China International Capital Corp Ltd