Half-year reports reveal risks for steel companies

Financial problems may lead to a broad 'domino effect' that could undermine entire sector: Expert

The half-year reports of major steel companies showed signs of improved performances, but hidden financial risks and disordered competition continue to add pressure to the sector, which is bearing the brunt of China's economic slowdown.

Among the 18 listed steel companies that had released their mid-year reports by Monday, 11 reported profits, while seven reported losses. Meanwhile, companies in the red are seeing smaller ranges of losses.