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Steel companies swing back to profit

(Xinhua) Updated: 2016-09-12 09:51

BEIJING - China's steel industry improved its profitability in the first seven months, due to rising steel prices, an industry insider said Saturday.

Although sales revenues of 373 steel companies fell 11.91 percent to 1.5 trillion yuan ($225 billion) during the period, their profits hit 16.3 billion yuan, Zhao Pei, secretary general of the Chinese Society for Metals, said at a forum.

However, market demand remained tepid, with steel consumption falling 3.6 percent year on year in July, Zhao said.

The old growth model of the steel industry cannot continue because of the slowing economy and lingering overcapacity, he said, while calling for the sector's transformation and upgrading.

As of July, China had achieved 47 percent of its target to cut steel capacity by 45 million tons this year.

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