World number-three steelmaker Angang Steel lost nearly $1 billion last year, it said in a stock exchange filing, as the Chinese giant was hit by domestic overcapacity and poor demand.
China’s steel sector has been under pressure from a prolonged slump in the country’s real estate market, traditionally a major consumer, that has hit demand in the world’s second-largest economy.
Angang logged a net loss of seven billion yuan ($969 million) in 2024, compared with a 4.1 billion yuan loss the year before, its Hong Kong-listed unit said on Sunday.
The company blamed “severe market conditions” for the weak performance.
Those included the “persistent lack of downstream demand in the steel industry, combined with a weak cycle and low market sentiment.”
China is the world’s largest producer of steel, making more than a billion tonnes in 2024.
With demand slumping in the domestic construction sector, Chinese steel exports surged last year to a nine-year high of 111 million tonnes, spurring concerns abroad about overcapacity in foreign markets.
In February, US President Donald Trump said he would impose 25 percent tariffs on all steel imported into the United States, including those from China, from March 12.
Vietnam and South Korea, the largest importers of Chinese steel, have also announced levies.
China’s top planning body said this month it aimed to cut steel output in 2025, without specifying a level of reduction.
AFP
Channels TV
