Most of the steel enterprises are facing opportunities for growth performance according to the three quarterly reports from A stock market companies. There are 29 listed companied are profitable (totally 35 companies),while at the same period last year, there are only less than 40% of the steel companies profits.

This performance has reduced the pressure on steel companies, but some analysts believe that the steel industry remains to be seen.

80% steel companies profit in the first three quarters of this year

Benefit from the implementation of  the policy that " to reduce production capacity" and the demand growth since the second quarter, the performance of the steel industry continued to improve in the third quarter, most of the listed steel companies got rid of the situation of continuous losses. Wind information data shows that there are 35 listed steel companies disclosed three quarterly performance reports in 2016. Operating income is 741.888 billion RMB, net profit is 9.281 billion RMB from January to September,having an increase of 147.3%.

Specific data: Baosteel continue to maintain the first place with 55.97 billion RMB of net profit, ANSTEEL and HBIS shares ranked second and third. While Chongqing Iron and Steel and Valin Iron and Steel are continuing losses, but losses decreased.

Baosteel said their company reduced the cost of procurement & manufacturing costs, reduce cash costs & cash losses, cutting costs of 1.1 billion RMB in the third quarter, and the reducing cost of 5.0 billion RMB promote the company to enhance business performance.

According to a single quarterly report, the performance of listed steel companies improved significantly.

The effects of "To reduce production capacity" policy is remarkable

The report shows that we have reduce steel production 34.68 million tons from January to August this year. And National steel production has decreased.

Steel companies began to reduce costs and transformation of business with the policy promotion. Special steel will be used in military, nuclear power, aerospace, automotive, railway and other fields. Energy structure upgrading will lead to the pipeline network construction of oil and gas. Special steel and steel pipe investment opportunities is worthy to attention.

Whether Demand improving still need to be seen.

Securities analysts said that the demand of crude steel increased in the first three quarters under the promotion of the real estate, infrastructure construction, automotive and other industries, but the sustainability remains to be seen.

So if the price of Steel Materials continues to rise in 2017? This maybe an unknown.