China's largest steel manufacturer Baoshan Iron and Steel Co., Ltd. held an interim briefing on its results for the January to June period this year, in which the company said demand for hot-rolled products may remain weak in the third quarter amid continued poor performance in the real estate sector and weak sales of vehicles and commercial trucks. softening in the shipbuilding industry.
However, demand may indicate a recovery trend in the fourth quarter amid a likely improvement in conditions for construction activity.
Measures to stabilize the national economy are expected to continue to be implemented, which will help stimulate demand in the market.
"Therefore, we believe that the market situation in the third quarter of this year is relatively serious, and demand will moderately resume in the fourth quarter," the company said at a briefing.
In 2024 the company plans to sell 52.22 million tons of steel, and sales volume will reach 25.51 million tons in the first half of the year, down only slightly by 0.19%. In the second quarter, sales amounted to 12.99 million tons, down 3. .41% less than the previous year.
Moreover, the company’s exports in the first half of 2024 reached a historical high of 3.035 million tons.
“The company’s export products are rich in categories, including high-strength automotive steel sheets, thick sheets for marine and shipbuilding, silicon steel, high-end home appliance parts and other high-end products. These products account for a relatively high proportion of total exports, and this is not a simple volume-based model,” the spokesperson said.
According to Baosteel, due to rising tariff barriers and increased protectionism in international trade in the second half of the year, there is a certain degree of uncertainty in exports.
