The Chinese company Baosteel, one of the leading global steel producers and part of China Baowu Steel Group, has planned to produce 52.6 million tons of steel and 48.8 million tons of pig iron by 2025. This was reported by the news agency Reuters, citing the company’s report for the first quarter of this year.
This is reported by Бізнес • Медіа
First Quarter 2025 Results and Future Plans
From January to March of this year, Baosteel produced 12.85 million tons of steel and 11.55 million tons of pig iron. During this period, the company received external orders for steel products totaling 1.55 million tons. In 2024, the steel manufacturer shipped a record 6.07 million tons abroad, which is 3.9% more compared to the previous year.
“Despite challenges from weak demand and falling prices for metal products, the company managed to reduce costs due to a more significant drop in coking coal prices compared to steel prices,” the Baosteel report stated on the Shanghai Stock Exchange.
Expectations for the Steel Market
The Chinese steel producer forecasts that the external economic situation will remain complex and unstable in 2025, with ongoing risks of trade tensions.
According to Cai Yanbo, the company’s deputy general manager, a decline in profitability is expected this year due to persistent pressure and an imbalance between supply and demand. Baosteel anticipates a nationwide reduction in steel production by 50 million tons, which, according to the market, would help stabilize metal prices and lower raw material costs. At the same time, the company emphasizes that such reductions are not planned for the near future and has appealed to the relevant authorities to avoid universal approaches to production control.
The company also intends to increase steel exports to 10 million tons annually by 2028. They consider their advantages to be a wide range of products and a well-established international marketing network.