(Yicai) Oct. 25 -- Net profits at Chinese iron and steel enterprises fell 34 percent in the first nine months of the year because of oversupply and were not boosted by declining iron ore prices due to the appreciation of the US dollar, according to the latest official data.

Chinese iron and steel companies achieved a cumulative net profit of CNY62.1 billion (USD8.5 billion) in the nine months ended Sept. 30, data from the China Iron and Steel Association showed yesterday. Their total revenue fell 1.7 percent to CNY4.7 trillion (USD642.8 billion), with an average profit margin of 1.3 percent.

Crude steel, pig iron, and steel production rose 1.7 percent, 2.8 percent, and 6.1 percent to 795 million tons, 675 million tons, and 1 billion tons, respectively, in the first nine months from a year earlier. Steel exports jumped 32 percent to 66.8 million tons.

China’s iron and steel industry developed stably in the high-end, intelligent, and green transformation direction in the first nine months, said Jiang Wei, vice chairman and secretary-general of the CISA. Demand for high-end steel climbed, and steel consumption in manufacturing industries, such as shipping, automobile, and home appliances, and emerging industries, including wind power and photovoltaic, continued growing, Jiang added.

Ninety-six iron and steel companies completed ultra-low emission transformation, assessment, and monitoring by the end of last month, and the integration of digitalization, intelligence, and steel manufacturing has been in steel firms, Jiang noted.

Steel production is expected to decline in the fourth quarter because of regulations, energy consumption, and environmental protection policies, Jiang pointed out.

With policies to stabilize the economy taking effect, the steel demand is expected to gradually recover, Jiang said, adding that strong demand from the automotive, home appliance, and shipping industries, and the rapid development of wind power and nuclear power industries, as well as infrastructure construction, are the key factors boosting steel demand.

Editors: Zhang Yushuo, Futura Costaglione