Baosteel, a subsidiary of state-owned China Baowu Steel Group, reported that its profit reached RMB 5.36 billion in the first quarter of this year, surging by 2.4 times compared to the same period a year ago. The revenue had a year-on-year increase of 39% to RMB 83.6 billion, with the basic earnings per share of RMB 0.24.

China’s steel price hit a ten-year high this year, only followed after the historical high in 2008.

Although China has been facing overcapacity problems for many years, the demand for steel in China has rebounded since last October.

According to market participants, the current sharp increase in China’s steel prices will continue to boost the profitability of the steel industry this year.