China's steel mills report a 5.1% profit drop in Q1 2026 due to high costs and EU carbon tariffs, according to Caixin.
Profits at China's major steel mills fell in the first quarter of 2026 as high raw material costs, weak domestic demand, and the EU's new carbon border tax weighed on the industry, reports Caixin.
Combined profits dropped 5.1 percent year on year to CNY21.7 billion (US$3.2 billion), reducing margins to 1.46 percent, according to the China Iron and Steel Association. Revenue rose 1.2 percent to CNY1.49 trillion.
Operating costs increased 1.5 percent during the period. Association secretary-general Jiang Wei stated that conflicts in the Middle East drove up oil prices, mining costs, and freight rates, keeping raw material prices elevated.
Imported iron ore prices hovered between US$105 and US$110 per ton despite record port inventories of 170 million tons in April. Coking coal prices also remained high, further squeezing profitability across the sector.
