Baosteel, China’s largest listed steelmaker, said it is likely to cut production nationwide this year, citing external pressures on an industry already struggling with overcapacity and declining demand.
Regarding the company’s first-quarter results, Cai Yanbo, deputy general manager of Baosteel, said the chances of a cut are high, as stated in the government report.
Cai added that he does not expect the cuts to be implemented this month or next. He urged relevant authorities to avoid a one-size-fits-all approach to production controls.
Beijing has said it plans to restructure the steel industry through production cuts, without elaborating on details such as the timing and extent of these cuts.
Zhou Jinxin, chairman of Baosteel, said that China’s steel exports in 2025 will decline by about 15 million tons amid tariff increases, and indirect steel exports will fall by 20 million tons.
Zhou expected Beijing to introduce more stimulus measures to counter external shocks.
Zhou added that domestic steel consumption will decline by 2% in 2025.
Manufactured goods exports, such as containers, vehicles, and engineering machinery, are typically classified as indirect steel exports.
China’s steel exports reached a nine-year high of 110.72 million tons in 2024.
Baosteel’s steel exports reached a record high of 6.07 million tons last year, but the company has not set a target for 2025.
Baosteel reported a 26.4% year-on-year increase in net profit in the first quarter, boosted by lower costs.
