Over Half of China's Key Steelmakers Lost Money in September

About 56% of China's key steelmakers were loss-making in September 2026, according to China Iron and Steel Association data cited by Bloomberg. Weak demand, excess supply and high raw material costs combined to squeeze producers, as the association warned of an imbalance between supply and demand.

The loss figure points to financial pressure across a substantial share of the key producers covered by the data. With demand weak and supply in excess, steelmakers face pressure to reduce output, while steel prices also face downward pressure. The share of companies reporting losses does not, however, indicate how large those losses were or how conditions varied among producers.

Whether production cuts ease the imbalance will depend on how supply and demand develop. Raw material costs will also remain important: even if output falls, persistently high input costs could continue to weigh on steelmakers' margins.