Summary: Shagang Group's Shenzhen-listed subsidiary, Jiangsu Shagang Co, faced a substantial 70.5% decline in net profits during H1 2023, reaching Yuan 106 million ($14.6 million). The downturn is attributed to weakened demand from end-users, plummeting steel prices, and elevated raw materials costs. Despite China's efforts to stabilize the economy, the steel market's vulnerability persisted, affecting the profitability of steelmakers. The company's total business revenue also saw a decline of 21.6% YoY, reaching around Yuan 7.6 billion.News Article:The renowned steelmaker, Jiangsu Shagang Co, a key arm of the prominent Shagang Group in China, has reported a significant setback in its financial performance during the first half of 2023. The company's net profits took a substantial plunge, witnessing a stark 70.5% decline compared to the previous year, settling at Yuan 106 million ($14.6 million). This sobering report comes from the interim report published by the company on Thursday.The driving forces behind this decline are manifold, with factors including weakened demand from end-users, a downward trajectory in finished steel prices, and the persistent elevation of raw materials costs. The company's profitability took a hit due to the intricate interplay of these challenges, creating a complex landscape for the steel industry.Despite China's concerted efforts to stabilize its economic growth, the domestic steel market has remained in a state of fragility. This has been particularly pronounced in the context of steelmakers' profitability, which saw a substantial drop in the first half of the year when compared to the same period in the previous year. The company acknowledged these industry-wide challenges and their implications for its financial performance.Amid these turbulent market conditions, the total business revenue generated by Shagang Group during H1 also encountered a notable decline. The revenue figure stood at approximately Yuan 7.6 billion, representing a decline of 21.6% when measured against the previous year's performance. This reduction in business revenue further underscores the challenges faced by the company in the current market environment.Conclusion:As Shagang Group navigates this period of economic uncertainty and market challenges, its response and strategies in the coming months will likely shape its trajectory. The steel industry's resilience and adaptability are being put to the test, prompting companies like Jiangsu Shagang Co to explore innovative approaches to sustain growth and weather market fluctuations.