Lingyuan Iron & Steel sees Q3 revenue boost amid production shift

Lingyuan Iron & Steel reported an 18.67% increase in third-quarter operating revenue, driven by a 21.89 million-ton surge in steel sales, which boosted revenue by 671 million yuan. However, the proportion of special steel production decreased by 0.78% to 63.64%, despite an increase of 13.49 million tons, due to high furnace production leading to a larger volume of rebar output.

The company outlined a "de-lossing" strategy focusing on revenue, cost, and efficiency, including initiatives to boost sales prices, control costs, and leverage policy benefits. For the third quarter of 2025, production and sales rates for special round steel, medium-width hot strip, and rebar all exceeded 100%. Operating cash flow turned positive by September 2025 compared to the previous year.

Lingyuan Iron & Steel maintains a strong financial position with available funds of 1.052 billion yuan and total credit lines of 9.1 billion yuan by the end of September 2025, ensuring sufficient liquidity. The company anticipates that steel prices will stabilize in the coming months after a period of downward fluctuation, driven by reduced supply and increased cost support. While real estate demand is expected to remain weak, increased infrastructure investment and automotive production may provide some offsetting demand.