During the initial months of 2023, China’s steel industry experienced substantial financial setbacks, with the ferrous metal smelting and rolling sector reporting a gross loss of RMB 14.61 billion (approximately $2.1 billion). This marks a significant downturn from the profit seen in the same timeframe last year, according to data released by the National Bureau of Statistics (NBS) on March 27.
In contrast, the automotive sector in China showed robust growth, with gross profits soaring to RMB 58.69 billion ($8.3 billion) in January and February, an increase of 50.1% compared to the previous year.
Other sectors demonstrated strong financial performance as well. The ferrous metals mining and dressing sector posted a profit increase of 101.3%, amounting to RMB 12.88 billion ($1.8 billion). The metal manufacturing sector followed suit with a 27.8% rise, reaching RMB 19.0 billion ($2.7 billion). Moreover, the combined sectors of railway, shipping, aerospace, and other transportation equipment manufacturing enjoyed a 90.1% increase in profits, totaling RMB 7.89 billion ($1.1 billion).
Overall, the large and medium-sized industrial enterprises across China achieved an aggregate gross profit of RMB 914.06 billion ($128.7 billion) during this period, reflecting a year-on-year increase of 10.2%. This highlights the mixed economic landscape in which certain industries thrive while others, like the steel sector, navigate challenges.
$1 = RMB 7.0946
