Baogang Group, Shougang Group and Wuhan Iron and Steel (Group) Corp, China's three largest steelmakers, recorded drops in their net profits of 89 percent, 97 percent and 92.86 percent respectively year-on-year during the first quarter, according to financial reports from the three companies.

While the steel industry as a whole largely stayed depressed during the quarter, steel demand has grown since March, leading to higher prices, according to experts.

The China Iron and Steel Association said the nation's large steelmakers turned a 2.08 billion yuan ($330 million) profit in March. However the steel industry still faced a deficit in the first quarter.