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Yahoo
29-04-2025
- Business
- Yahoo
Baosteel anticipates nationwide reduction in steel production in 2025
Baoshan Iron & Steel (Baosteel), China's largest listed steelmaker, has indicated the likelihood of a nationwide reduction in steel output this year, reported Reuters. The company, a subsidiary of China Baowu Steel Group, is reportedly the world's top steel producer. Baosteel noted that the steel industry in China is facing external pressures while already struggling with overcapacity and weakening demand. Baosteel deputy general manager Cai Yanbo said during the company's first-quarter results briefing: "Chances for a cut are high as it has been mentioned in the government report," when addressing market speculation about a potential 50 million tonne cut in Chinese crude steel production for the year. However, Yanbo expressed that immediate cuts were not anticipated, stating: "We have appealed to relevant authorities to avoid [a] one-size-fits-all approach while controlling output." An output reduction could help to rebalance the steel market, potentially supporting steel prices and influencing the cost of steelmaking materials. Although there are announced plans in the country to restructure the steel sector through output cuts, specifics regarding the timing and extent of these reductions remain unclear. Baosteel's chair Zou Jinxin provided insights into the future of China's steel exports, predicting a decline of approximately 15 million tonnes in 2025 due to tariff increases. Jinxin also noted that indirect steel exports, which include manufactured goods such as containers and vehicles, would decrease by 20 million tonnes. He anticipates additional stimulus measures from the government to mitigate the external economic challenges. Jinxin also mentioned a projected 2% drop in domestic steel consumption for 2025. In 2024, China's steel exports reached a nine-year peak of 110.72 million tonnes. Baosteel itself achieved a record 6.07 million tonnes in exports last year, although the company has not disclosed its export target for 2025. Despite these challenges, Baosteel reported a 26.4% annual rise in net profit for this year's first quarter, benefiting from reduced costs. Last month, Marula Mining's subsidiary Muchai Mining Kenya entered a contract with Baosteel Resources South Africa for the purchase and sale of manganese ore from the Kilifi manganese processing plant in Kenya. "Baosteel anticipates nationwide reduction in steel production in 2025" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
South China Morning Post
28-04-2025
- Business
- South China Morning Post
China's Baosteel expects nationwide output cuts to fix market imbalance
China's biggest listed steelmaker, Baoshan Iron & Steel, said a nationwide output cut was likely this year and flagged external pressures on an industry that is already grappling with overcapacity and faltering demand. Advertisement 'Chances for a cut are high as it has been mentioned in the government report,' deputy general manager Cai Yanbo said at the company's first-quarter results briefing on Monday, when asked about market talks of cutting 50 million metric tons of Chinese crude steel output this year. Cai, however, added that he did not expect cuts to 'be implemented this month or next month; we have appealed to relevant authorities to avoid one-size-fits-all approach while controlling output'. Baosteel, as the subsidiary of state-owned China Baowu Steel Group is known, said an output cut of such scale would help rebalance the steel market, underpinning steel prices and weighing on prices of steelmaking ingredients. China has said it plans to restructure the steel industry, without disclosing the timing and scale of production cuts. China's steel exports in 2025 will slide by around 15 million tons amid tariff hikes, according to Zou Jinxin, Baosteel's chairman, while indirect steel exports will be slashed by 20 million tons. Exports of manufactured goods such as containers, vehicles, and engineering machinery are typically classified as indirect steel exports. Advertisement Zou said he expects Beijing to roll out more stimulus measures to counter external shocks.
Reuters
28-04-2025
- Business
- Reuters
China's Baosteel expects nationwide output cuts this year
BEIJING, April 28 (Reuters) - China's biggest listed steelmaker, Baoshan Iron & Steel Co ( opens new tab, said a nationwide output cut was likely this year and flagged external pressures on an industry that is already grappling with overcapacity and faltering demand. The company, known as Baosteel, is a subsidiary of the state-owned China Baowu Steel Group, the world's largest steelmaker by output. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. "Chances for a cut are high as it has been mentioned in the government report," Cai Yanbo, Baosteel's deputy general manager, said at the company's first-quarter results briefing on Monday when asked about market talks of cutting 50 million metric tons of Chinese crude steel output this year. Cai, however, added that he did not expect cuts to "be implemented this month or next month; we have appealed to relevant authorities to avoid one-size-fits-all approach while controlling output". An output cut of such scale would help rebalance the steel market, underpinning steel prices and weighing on prices of steelmaking ingredients. Beijing has said it plans to restructure the steel industry through output cuts, without elaborating on details such as the timing and scale for such cuts. China's steel exports in 2025 will slide by around 15 million tons amid tariff hikes and indirect steel exports will be slashed by 20 million tons, according to Zou Jinxin, Baosteel's chairman. Exports of manufactured goods such as containers, vehicles, and engineering machinery are typically classified as indirect steel exports. Zou said he expects Beijing to roll out more stimulus measures to counter external shocks. China's steel exports hit a nine-year high of 110.72 million tons in 2024. Baosteel's steel exports hit a record high at 6.07 million tons last year, but the company did not specify its 2025 target. Domestic steel consumption in 2025 will fall by 2%, Zou added. Baosteel reported a 26.4% annual increase in its first-quarter net profit, helped by lower costs. Shares at Baosteel jumped by 5.7% to 7.02 yuan ($0.9622). ($1 = 7.2956 Chinese yuan)
