According to a report from Unbank, gross profit margin of China’s steel industry dropped by 4.53 percentage points to 5.28 percent in the first half of this year, the lowest since 2004. During the period, gross profit margin, profit margin and return on assets of large-sized steelmakers were 7.35 percent, 3.39 percent and 2.47 percent respectively; those of medium-sized mills were 3.67 percent, minus 0.11 percent and minus 0.06 percent; and those of small mills were 6.72 percent, 0.99 percent and 0.77 percent. Gross profits of large, medium and small producers were down 99.7 percent, 102.84 percent and 70.14 percent year-on-year respectively. Analysts say constrained by soaring costs and protracted stagnation in downstream sectors, the steel industry is experiencing an era of thin margin.