Strong Start to 2025 for Steelmaker

China Oriental Group Company Limited has released its unaudited operational results for the first quarter of 2025, revealing a stable performance amid volatile global steel markets. The company sold approximately 1.8 million metric tons of self-manufactured steel products between January and March 2025. The results reflect both resilience in domestic demand and strategic cost management, even as global steel trade faces headwinds from weak demand in construction and infrastructure.

Modest Gross Profit Underscores Cost Efficiency

According to the company’s filing, gross profit per metric ton ranged between RMB 100 and 150 [$14–$21], indicating moderate but stable margins. This figure reflects the company's ability to optimize production costs despite fluctuating raw material prices, particularly iron ore and coking coal. The group maintained profitability by focusing on cost-effective production techniques and volume-driven sales, which helped offset price volatility in external markets.

Operating Profit Hits $27.4 Million

China Oriental recorded an operating profit of approximately RMB 199 million [$27.4 million] after deducting net finance costs. This marks a positive start to the year compared to the uneven earnings posted in Q4 2024. The figure highlights improved internal efficiencies and better utilization rates at its core manufacturing facilities in Hebei Province. While gross profits remained conservative, the company’s cost controls and lean operations have allowed it to deliver solid bottom-line figures.

Product Mix & Downstream Demand Stability

The 1.8 million metric tons sold include a mix of long and flat steel products, used in construction, machinery, and manufacturing. With China’s property sector showing early signs of recovery and government infrastructure projects accelerating, demand from downstream users has remained relatively robust. While export volumes saw limited growth due to overseas tariffs and logistics costs, the domestic market has compensated with stable procurement.

Key Takeaways

• China Oriental sold about 1.8 million metric tons of steel in Q1 2025, with gross profit of $14–$21 per metric ton.

• The company achieved an operating profit of $27.4 million after net finance costs, driven by cost control.

• Environmental upgrades continue, with a shift toward electric arc furnaces and plans for CO₂ reduction.