China Iron and Steel Association, a non-profit organization with 218 steel producers as member companies, vowed to take measures to maintain stable operation of the industry amid weakening demand and high prices of raw materials.

Qu Xiuli, vice-chairman and secretary general of the association, said on Monday that CISA will strengthen cooperation between the government and its constituent companies, actively explore and establish a new mechanism to manage production capacity, as well as promote the companies' consolidation and reorganization.

"More efforts will also be made to observe newly increased demand of steel derived from emerging sectors and promote the application of high-end and energy efficient steel and iron materials in various fields," she said.

The remarks came after the association reported weakening demand of steel materials and high prices of raw materials used in production like coking coals.

In the first three quarters, apparent consumption (production plus imports minus exports) reduced 4.2 percent year-on-year to 741 million metric tons, while the purchase price of coking coal at major steel companies surged 51.1 percent year-on-year.

While the cost of importing iron ore in the first three quarters reduced year-on-year, it was still higher compared with the cost in the same period in 2019 and 2020.

According to the association, its member companies saw nearly 4.87 trillion yuan ($667 billion) in revenue in the first three quarters of this year, down 9.27 percent year-on-year. Their profit dropped 71.34 percent year-on-year to 92.8 billion yuan in the same period.