(Yicai Global) Feb. 18 -- Profit in  China's steel industry hit an all-time high last year buoyed by  supply-side structural reform, environmental supervision and strong  market demand combined with high product prices, according to the  country's industry ministry.

The operating revenue of China's steel  industry rose 13.8 percent to CNY7.7 trillion (USD1.1 trillion) last  year, while profit expanded 39.3 percent to CNY470.4 billion (USD69.5  billion), the ministry's raw material department said in a statement.  The operating revenue of key large and medium-sized steel firms  increased 13.8 percent to CNY4.1 trillion, up 13.8 percent, and their  profit grew 41.1 percent to CNY286.3 billion, while the profit margin  was 6.9 percent.

As of late last year, the  asset-liability ratio of key large and medium-sized steel firms was  65.02 percent, down 2.6 percentage points from a year earlier, the  ministry added.

The steel price in China was generally  high last year, which was the major contributor to the increase in  turnover. The steel composite price index was 115.8 on average, up 7.6  percent, the ministry said, adding the steel price rose between July and  November after being largely steady in the first half. It began to drop  in November and was down 13 percent as of late December from its peak.

China's crude steel output increased 6.6  percent to a record high of 928 million tons. Domestic consumption rose  14.8 percent to 870 million tons, representing a domestic  self-sufficiency rate of more than 98 percent, the ministry noted.