China’s Masteel expects increased net loss for 2024

China’s steel sector faced a tumultuous 2024, with Ma’anshan Iron and Steel Company (Masteel) emerging as a prime example of the industry’s struggles. The Anhui-based steelmaker projected a net loss of RMB 4.597 billion ($0.64 billion) for 2024—a devastating year-on-year increase of RMB 3.27 billion ($0.46 billion).

In 2024, influenced by the imbalance between supply and demand. The steel prices were at a low level and the raw materials cost.

The weakening consumption, particularly in construction, Chinese blast furnace utilization remained high (averaging 239.31 tons/day in mid-2024), creating a supply glut. Consequently, steel prices plummeted while raw material costs stayed elevated, squeezing profit margins industry-wide.

Masteel’s revenue reflected this, falling 17.3% to RMB 81.817 billion as production finished steel dropped 10.9%.

Masteel’s projected RMB 4.6 billion loss for 2024 is more than a financial setback—it signals a structural reckoning for China’s steel industry. The collision of persistent oversupply, crushed profit margins, and stubbornly high costs reveals an unsustainable model. While export surges offer temporary relief, they invite global protectionism and cannot offset collapsing domestic demand.

Reference

China’s Masteel expects increased net loss for 2024

https://www.steelorbis.com/steel-news/latest-news/chinas-masteel-expects-increased-net-loss-for-2024-1377654.htm

http://corpsv.etnet.com.hk/webservice/jsp/ETNET/COMPANY/BIG5/CoInfoDetail.jsp?MAINTYPE=COMPANY&SUBTYPE=DETAIL_ORG&ENCODING=BIG5&STOCKCODE=00323&CLIENT=ETNET