Angang Steel Co., Ltd., a core subsidiary of Ansteel Group, reported a wider net loss for the first half of 2026, as weak steel prices and high raw material costs squeezed margins amid oversupply in the sector.

The company, a major modern integrated steel producer in China, posted a net loss attributable to shareholders of 2.05 billion yuan ($305 million) in January-June 2026, deepening by 83.59% from the restated level a year earlier. Revenue fell 5.58% year on year to 45.91 billion yuan.

Excluding non-recurring items, the net loss stood at 2.17 billion yuan, down 75.95% from the restated figure in the same period of 2025.

Angang Steel attributed the widening losses to persistent oversupply in the steel market, subdued steel prices, while costs for raw materials such as iron ore and coking coal remained elevated, narrowing the spread between input costs and product prices.

China's steel industry in the first half of the year showed a pattern of "strong supply, weak demand and inventory pressure", according to the industry review disclosed in the company's interim report.

National crude steel output fell 3.0% year on year to 499.95 million tonnes, while pig iron output declined 2.8% to 426.64 million tonnes and steel product output slipped 0.9% to 718.78 million tonnes.

Apparent crude steel consumption dropped 3.6% year on year to 436.55 million tonnes, with demand contraction more pronounced, leading to a widening year-on-year inventory build and highlighting a phase of market oversupply.

China's steel prices fluctuated in H1 2026, with the average composite price index, released by the China Iron and Steel Association (CISA), falling 1.28% year on year. The domestic steel market saw prices start low, rise to a peak, then retreat in the first half of the year, with price index averaging 92.54 points.

International steel prices trended higher. The CRU global steel price index averaged 208.3 points in January-June, up 9.2% from a year earlier. China's steel exports, however, totaled 54.87 million tonnes, down 5.6% year on year, with average export prices edging up 0.3%.

Rising international oil prices amid geopolitical conflicts pushed up global commodity inflation and freight costs, while coking coal, coke and imported iron ore prices stayed firm, further lifting production costs and squeezing steelmaker margins.

Angang Steel adjusted prior-year data after acquiring 80% stake in Yingkou Port Co., Ltd.. The company signed the share transfer agreement on March 30, 2026, making Yingkou Port a consolidated subsidiary, and has completed capital contribution during the reporting period.

Looking ahead to the second half, the company said that global trade protectionism and geopolitical tensions will heighten external uncertainty in the second half of 2026, with steel exports facing dual challenges from compliance requirements and trade barriers.

The domestic industry will continue to see "strong supply, weak demand" conditions, with downstream homogenized competition severely eroding profits, while frequent fluctuations in raw material prices, plus rising carbon costs from mandatory dual carbon emission controls, will keep production and operations under pressure.

Facing multiple risks, the company will deepen its assessment of macroeconomic policies and market trends, improve corporate governance and compliance, optimize product mix, strengthen digital and intelligent empowerment and green transformation to prevent major risks and achieve stable operations amid a shrinking market cycle.