Subsidiary of China's second-largest steelmaker suffers nearly $1bn loss as industry struggles deepen

Angang Steel Co Ltd, the listed subsidiary of China’s second-largest steelmaker, has reported a staggering loss of nearly $1 billion for 2024, highlighting the deepening crisis in the country’s steel industry amid collapsing demand and falling prices.

The company said in a filing to the Shenzhen Stock Exchange that its net loss more than doubled to 7.1 billion yuan, or about $981 million, compared with 3.3 billion yuan the previous year, Bloomberg reported.

“In 2024, the steel industry faced a further intensification of its weak market conditions,” Angang said. The firm pointed to falling steel prices due to weak demand in downstream sectors, while the cost of key input materials such as iron ore remained stubbornly high.

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Chinese steelmakers face major challenges

Chinese steelmakers are facing the painful unwinding of a two-decade boom fuelled by rapid construction and industrial expansion.

The sector was largely unprofitable throughout last year. Rising debt levels and a record number of loss-making firms have become emblematic of the pressures gripping the industry. Official data from the first two months of 2025 suggest the outlook remains grim, with new sources of growth proving insufficient to offset the slowdown in construction activity.

Rising protectionism is compounding the challenges. Countries including the United States, India and Vietnam have imposed tariffs on steel imports , posing a growing threat to China’s export volumes.

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Despite the slump in demand, production levels have remained elevated. Steel output in China stayed above one billion tonnes last year, maintaining a level that analysts say is unsustainable in the current market environment.

There is some cautious optimism that the situation could improve later this year. Michelle Leung, an analyst at Bloomberg Intelligence, said Angang could narrow its losses in 2025 if domestic steel prices recover.

That recovery may be supported by government intervention, as Beijing has signalled plans to mandate production cuts to address chronic overcapacity.