Iron and steel industry is a pillar industry of the national economy, providing the necessary materials for national infrastructure. Since the reform and opening up, Chinese economic change rapidly, industrial development and urbanization has brought a large number of steel rigid demand, driven by the rapid development of iron and steel industry, has also brought a stable return on the whole industry, from the historical data, according to the iron and steel industry production and profit level of four stages. Before 2001, China's average monthly steel production remained at 10 million tons, per ton of steel profits remained at 200-300 yuan, the development of iron and steel industry is relatively stable; after the new century, the leading role of real estate and infrastructure continue to strengthen, promote the rapid development of iron and steel industry, rose to 700 yuan per ton profit was 1000 yuan, the highest. The excess profits continue to attract private steel mills, to further accelerate the expansion of production capacity, the rapid increase in steel production, the average growth rate reached 20%; in 2009, the cost of end uplift is represented by the iron ore was squeezing the profits of steel per ton, a substantial decline in profits. Especially with the China steel demand growth slowed, gradually entered the peak period, per ton of substantial losses, but the production scale is still very large, so 2009-2015 years, the whole industry has entered a difficult period pains, long faced with the loss of pressure; on demand effect weakened, in 2015 the country launched the supply side reforms, increase the intensity of remove the excess capacity, and promote the overall profitability of the steel industry improved, profit per ton 300-500 yuan to restore the boom interval, but the repair industry profits to re stimulate the production of power enterprises, market and policy game's efforts to increase the volatility of profit per ton increased obviously.

　　The profits of iron and steel industry mainly come from processing profits, and with the improvement of processing level, the marginal profit level also increases gradually. From the perspective of production process, using steel smelting and processing raw materials into primary products of different types of steel billet, billet by forging and rolling, the production of different types of steel, which mainly includes building materials such as steel, wire, plate and other varieties, the processing difficulty is low, the added value is low. In general, plates, profiles of the profit is better than building materials, mainly covers the cold and hot rolled sheet / coil, plate, coated plate, silicon steel and other varieties, mainly covers the angle of groove profile, H steel, Fang Gang and other varieties, including coated plate, silicon steel and other varieties belong to the high value-added steel material, in addition, structural steel, bearing steel and special steel also belongs to high value-added steel varieties, classification is fine, as the basic mode of production and sales, profits are guaranteed.