Enterprises that are members of the China Iron and Steel Industry Association (CISA) generated 2.43 trillion yuan (nearly US $ 339 billion) in sales revenue during this period, an increase of 9.75 percent, but profit year on year decreased by 23.93 percent, amounting to 123.582 billion yuan.
Industrial giant Baoshan Iron & Steel reported a more than 38 percent year-on-year decline in its net profit in the first half of this year.
The main reason for the fall in profits, according to CISA, is the rise in prices for raw materials.
During this period, purchasing costs for iron ore in the domestic market increased by 19.88% year on year, and for imported raw materials - by 29.13%.
Despite rising costs, iron ore imports rose 21.06% in July from a month earlier.
China is the world's largest steel producer, consumer and importer of iron ore. In an effort to improve production efficiency, the country's steel sector is making tremendous efforts to reduce excess capacity.
