Baosteel Reports 44% Drop in First Quarter Profits

Net profit of Baoshan Iron & Steel Co Ltd in January-March 2020 decreased to 1.54 billion yuan, down 44% yoy. Baosteel produced 11.8 million tonnes of steel in the first quarter.

Baoshan said: “With the lengthy spring holidays and the spread of the novel coronavirus pandemic at home and abroad, domestic demand for steel products has obviously dropped, it is clear that strong iron ore prices have also reduced profits at their factories. Profits were also weighed by high levels of supply and sluggish demand for cars and containers. "

Baoshan expects steel sheet demand to continue to fall in the second quarter due to low utilization rates in the downstream sectors, as well as high inventory levels, which could narrow the spread in purchasing and selling prices and hit margins in the first quarter. half a year. It says: "We will expand the market, strengthen the link between production and sales, and harness the potential for cost cutting to reduce the impact of the coronavirus on our operations."