Baosteel sees difficult time in Q2
Chinese Steel giant Baosteel announced that its production of iron and steel totaled 5.864 million tons and 6.365 million tons respectively in the first quarter of this year with combined profits of RMB 1.5 billion.
The company stated that the world economic growth weakened significantly in the first quarter by the complex and volatile market situation and the competitive environment.
Even though the operating conditions have improved since March, the domestic steel industry’s business situation has been seriously impacted by the weak market balance and high cost during January and February.
Baosteel predicted that the downstream demand may diverge in the second quarter of this year.
The seasonal demand for long products will continue to be released, and the prices are expected to grow modestly.
However, the recovery from the manufacturing sector has not yet stabilized; especially demand for plate products is still sluggish.
News Date 09 May 2012 13:43:57 reported by Ren Jhuang