China’s largest steel producer, Baoshan Iron & Steel (Baosteel), is conducting talks with various potential partners to make steel investments in different regions, primarily in Asia, the Middle East, and North Africa. During the meeting on August 29, when its half-year results were announced, the company stated that it is actively evaluating its overseas investment targets to strengthen its presence in global markets.
Baosteel aims to invest in operations outside China to enhance its global competitiveness. In this context, the company has invested in a major steel plate project in Saudi Arabia, with a planned production capacity of 2.5 million tons and an initial budget of USD 4 billion. Company officials stated, “As our internationalization strategy deepens and industry trends continue to evolve, establishing regional or full-process production lines abroad will become an inevitable and necessary step.”
Meanwhile, following a contraction in domestic consumption due to China’s prolonged real estate crisis, Chinese steel faces anti-dumping duties from many countries trying to keep cheaper Chinese steel out of their markets. This situation is pushing Chinese steel producers to invest more in global markets.
Baosteel also announced last week that its net income increased by 7% in the first half of 2025.
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