[SMM Hot Topic] Chinese Steel Mills’ Profits Recover, Defying Global Steel Price Downturn

• 2025 Global Steel Mill Profitability Divergence

In 2025, steel mill profitability diverged across different global regions. North American market, US-based Cleveland-Cliffs posted a net loss of $1.478 billion in 2025, with losses widening YoY; US-based Nucor reported net profit of $1.74 billion in 2025, down 13.58% YoY. South American market, Brazil's Gerdau S.A. posted net profit of $248 million in 2025, down 70.69% YoY.

European market, Luxembourg-based ArcelorMittal reported net profit of $3.15 billion in 2025, up 135.4% YoY; Austria's voestalpine GROUP posted net profit of $109 million in 2025, up 178.01% YoY.

Asian market, South Korea's Hyundai Steel reported net profit of approximately $680,000 in 2025, down 88.89% YoY; South Korea's POSCO Steel posted net profit of $776 million in 2025, up 26.7% YoY; China's Valin reported net profit of approximately $383 million in 2025, up 28.49% YoY.

• Amid Declining Steel Prices Across Multiple Global Regions, Chinese Steel Mill Profits Performed Relatively Well

In 2025, steel prices declined across most global regions. Taking hot-rolled coil as an example, Black Sea export FOB prices fell 14% YoY, Turkish export FOB prices fell 11% YoY, export FOB prices from China, Japan, and India as well as EU import CFR prices fell 9% YoY, Southeast Asian import CFR prices fell 7%, while US import CFR prices rose 8%.

A comparison of 2025 revenue and net profitability among selected global steelmakers revealed that among those with higher revenue (>$10 billion), Chinese steelmakers slightly outperformed their ex-China counterparts in net profit.