Baoshan Iron and Steel Co., Ltd. (Baosteel), China's most modern large-scale integrated steel enterprise, reported higher revenue but lower profit for the first half of 2026, according to its interim report.

Baosteel, also a globally leading world-class steelmaker, posted operating revenue of 160.73 billion yuan ($23.91 billion) in January-June, up 6.18% year on year, while operating costs rose 7.2% to 151.10 billion yuan.

Baosteel's full-year 2026 operating revenue budget stands at 330.0 billion yuan, with the first half achieving 48.7% of the annual target. Operating costs reached 49.6% of the 304.58 billion yuan annual budget.

The steelmaking segment posted a gross margin of 4.9% in the first half, down 1.0 percentage point from a year earlier.

Total profit fell 12.18% year on year to 5.78 billion yuan, down 800 million yuan from the same period last year, as high raw material prices and weak steel market conditions squeezed margins. However, Baosteel maintained the top position in domestic industry profitability and kept leading per-tonne steel earnings.

Net profit attributable to shareholders stood at 4.57 billion yuan in the first half, down 6.30% year on year, with basic earnings per share of 0.21 yuan, down 8.7%.

The company produced 23.77 million tonnes of iron and 25.54 million tonnes of crude steel during the period, with commercial steel billet sales reaching 25.68 million tonnes. Baosteel significantly expanded its overseas market presence in the first half of 2026, securing export orders totaling 4.143 million tonnes, a 24.8% increase year on year.

Baosteel noted that China's steel sector faces squeezed margins since the start of 2026, as trade barriers, carbon tariffs and export controls curb overseas demand, while weak domestic consumption and elevated raw material costs add pressure.

Looking ahead, Baosteel expects more proactive fiscal policy and moderately loose monetary policy to support economic growth in the second half, while ongoing anti-involution efforts and new capacity replacement rules will help optimize supply structures.

Demand-side initiatives are expected to boost high-quality steel consumption, with automotive, shipbuilding and high-end equipment sectors maintaining momentum, the company said.