China's steel industry faced mounting financial pressure in the first nine months of 2026, and a return to profitability remains unlikely in November, according to a report from the Lange Steel Research Center.

National Bureau of Statistics data show that revenue in the ferrous metal smelting and rolling industry fell 1.5% year on year to RMB 5,554.58 billion in January–September. Operating costs declined by a smaller 0.6%, to RMB 5,301.82 billion, while total profit for the period stood at RMB 24.34 billion.

The figures point to pressure on earnings as revenue fell faster than operating costs. The revenue and cost figures alone do not account for all items included in total profit, but their different rates of decline help explain why profitability remained under strain.

Lange expects end-user demand to weaken during the traditional November off-season, prolonging the industry's weak earnings. Whether conditions improve beyond that period will depend in part on changes in demand and on how revenue and costs move relative to each other.