Export Targets and Trends
At the company’s first-half results briefing, Baosteel Chairman Jixin Zou stated that exports may decline in the fourth quarter from the current high levels. Potential reasons include rising export prices, new tax regulations, and tariff barriers.
According to the company’s data, China’s steel exports rose 11.4% in the first seven months of the year, reaching a record high. During this period, Baosteel exported 4.83 million tons of steel, compared to a total of 6.07 million tons in the same period in 2024.
Baosteel General Manager Baojun Liu said, “Our monthly exports are still increasing, so we already have the capacity to export 10 million tons of steel annually.” Liu added that the company aims to reach export capacities of 15 million tons in 2026 and 20 million tons in 2028.
Production Restrictions and Market Measures
The company stated that it will closely monitor measures to cut steel output and China’s “anti-involution” policies, which have been developed to address problems caused by overcapacity in the industry.
China’s top leadership pledged in July to curb a deflationary price war. This move raised expectations for nationwide supply reforms in sectors plagued by overcapacity, such as coal and steel, and helped push prices higher. China aims to reduce steel output between 2025 and 2026, which is intended to support prices while addressing the global protectionist backlash triggered by overcapacity.
Despite weak domestic demand and falling steel prices, Baosteel reported a 7.4% year-on-year increase in net profit for the first half of the year.
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