China’s largest steelmaker, Baoshan Iron & Steel (Baosteel), has announced plans to produce 52.61 million tons of steel and 48.79 million tons of pig iron in 2025, despite expectations of a nationwide decline in steel output. In the first quarter, the company produced 12.85 million tons of steel and 11.55 million tons of pig iron while securing 1.55 million tons of foreign orders.
Baosteel’s net profit rose by 26.4% year-on-year to approximately 2.43 billion yuan ($333.4 million), benefiting from lower costs due to falling coking coal prices. However, the company anticipates continued pressure on profitability in 2025 amid weak demand and supply-demand imbalances.
Deputy General Manager Cai Yanbo expects industry-wide production cuts but does not foresee them happening in the immediate months. Baosteel has urged authorities to avoid a one-size-fits-all approach to regulating production. The company aims to increase steel exports to 10 million tons annually by 2028, leveraging its broad product range and established global marketing network.
Market speculation suggests a potential 50-million-ton reduction in China’s steel output, which could stabilize steel prices while exerting downward pressure on raw material costs. Baosteel remains focused on navigating trade tensions and external uncertainties in the global steel market.
