BEIJING (Commodity Online) : China Iron & Steel Association on Wednesday said combined net profit of seventy domestic steel enterprises drop nearly 80% year on year to 29.98 billion yuan till September this year.

In a statement issued here CISA said the operating revenue from their core business was nearly 1.56 trillion yuan in the first nine months, down 24.39% from a year earlier.

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The 70 enterprises posted a 5.6-billion yuan loss for the first four months of this year, but reaped nearly 35.59 billion yuan in profit in the period from May to September, said CISA.

A representative of CISA said he held a conservative outlook on the fourth quarter business operations of the iron and steel industry due to the oversupply of steel in the market.

Stockpiles of steel in 26 key Chinese cities grew 5.3 million tons to 11.13 million tons in the period from January to September.