China's largest steel producer, Baoshan Iron & Steel (Baosteel, a division of China Baowu Steel Group) plans to produce 52.61 million tons of steel and 48.79 million tons of pig iron in 2025, respectively. This is reported by Reuters with reference to the company's report for the first quarter of this year.
In January-March of this year, Baosteel produced 12.85 million tons of steel and 11.55 million tons of cast iron.
In the first quarter, the company received overseas orders for steel products for 1.55 million tons. By the end of 2024, the steel producer shipped a record 6.07 million tons abroad (+3.9% year-on-year).
As reported, during the specified period, Baosteel increased its net profit by 26.4% year–on-year to about 2.43 billion yuan ($333.4 million).
The Chinese steel producer notes that this year the external environment will become more complex and uncertain, and the risks of trade tensions will remain noticeable. They state that profitability will face a constant decrease in pressure due to the discrepancy between supply and demand.
Baosteel expects nationwide production cuts this year due to external pressure on the industry, which is already struggling with overcapacity and weak demand, said Cai Yanbo, the company's deputy CEO.
However, Tsai does not predict that the cuts will be implemented this month or next. The company has asked the relevant authorities to avoid a one-size-fits-all approach to production control.
Reducing steel production by 50 million tons, which the market is talking about, would help balance the situation by supporting steel prices and putting pressure on raw material prices.
