Baosteel Co Ltd published a report for 2012 financial year ended on March 30. According to the data provided, Baosteel sold 23 million 566 thousand tons of steel workpiece and received 13.14 billion yen gross profit at 191 billion yen total income.
However, Baosteel said that in 2013 the state of affairs will improve slightly. Urbanic reforms and the introduction of advanced technologies will ensure the further development of China steel industry.
Meanwhile, there are great difficulties in front of the industry. The slowdown in demand with the simultaneous increase in capacities is the most serious threat to metallurgy. The high cost of raw materials and constantly increasing competition reduces the operational margin of steeling production.
According to Baosteel analysts, total income will continue to fall throughout 2013 and at best, 171 billion 500 million yen were reached, which is 10.5% less than in this report.
Baosteel honestly warned of the upcoming losses in 2013
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