Iron and steel sector profit set to soar

First-half financial performance strong on back of supply-side reform

China's ferrous metal industry is set to post a strong performance in the first half of the year on the back of government measures to cut overcapacity and optimize the industry's structure, experts said.

"With the reduction of excess capacity, there is a tight supply of iron and steel, leading to high prices, especially wires and rebars," said Wang Guoqing, research director at the Lange Steel Information Research Center in Beijing.