Steel makers' profit margin up on price rebound

The daily output of crude steel edged up 1.04 percent to 2.13 million metric tons in August, ending a three-month long decline, according to the China Iron and Steel Association.

Earlier published data from the association showed the nation's 86 major steel makers generated 2.3 billion yuan ($375 million) profit in July, and their combined return on sales rose to this year’s high of 0.77 percent, a stark contrast to their 0.13 percent average in the first half.

Steel prices started to shore up in July, which greatly improved the industrial profit margin, said Qiu Yuecheng, senior analyst at 96369.net, an e-commerce research platform.

The profit margin of Chinese steel mills narrowed month-on-month during the first half. Although major steel makers earned 2.27 billion yuan profit in the first six months, they posted a combined loss of 699 million yuan in June, their first loss-making month in history.