Since October, the integration of steel companies has accelerated. Shagang plans to transfer 60% of the equity of Nangang, and Jingye Group officially signed a contract to acquire North Guangdong United Steel. Industry insiders said that the increase in concentration is conducive to promoting the high-quality development of the steel industry.
The demand recovery is less than expected, coupled with the high cost of raw materials and fuels, steel companies are facing greater operating pressure.
 
The net profit attributable to the parent company in the first three quarters of Nanjing Iron & Steel Co., Ltd. was 2.077 billion yuan, a year-on-year decrease of 43.02%. Among them, the net profit attributable to the parent in the third quarter was 512 million yuan, a year-on-year decrease of 58.33%. The company said that during the reporting period, the output of steel products decreased year-on-year, while the prices of major raw materials and fuels increased.
 
The net profit attributable to the parent company of Shagang in the first three quarters was 426 million yuan, a year-on-year decrease of 48.47%. Among them, the net profit in the third quarter was 64.7853 million yuan, a year-on-year decrease of 76.87%.
 
In the first three quarters, Baosteel realized a net profit of 9.464 billion yuan attributable to its parent, a year-on-year decrease of 56.2%. Among them, the net profit attributable to the parent company in the third quarter was 1.672 billion yuan, a year-on-year decrease of 74.3%. Baosteel Co., Ltd. said that the steel market generally showed a weak demand and low expectation, and steel prices were sluggish. In the third quarter, the domestic steel price index fell by 16.2% month-on-month, and the international steel price index fell by 21.3% month-on-month. During the reporting period, the price of iron ore showed a downward trend, but the price of coal and coke remained at a high level as a whole, combined with the impact of exchange rates, the room for reduction in the cost of raw materials and fuels was limited, and the price difference between purchases and sales of iron and steel enterprises continued to narrow.