Steel mill profits surge in October

The surge in the profits was spurred by the decline in agreed iron ore price and increase in steel prices, the report said.

But it is still too early for China's steel industry to be optimistic. Analysts said the agreed seasonal iron ore price will climb at the beginning of next year.

Although energy saving and reducing emissions has helped eliminate backward production capacity, the steel industry still faces high capacity pressure in the short term. The profit rate of steel businesses will remain at a comparatively low point for a while, the report said.