China's major steel mills turned profitable in March, the first monthly profit since last June. That's the word from the China Iron and Steel Association.

The association said Monday that the companies made a combined profit of 2.56 billion yuan in March but still lost 8.75 billion yuan in the first quarter. That was 7.6 billion yuan from one year ago. Still, experts say the price gains aren't sustainable. That's because rising prices may motivate the mills to produce more, worsening the supply glut.