Baosteel increased its first-half profit by 7.4% despite weak demand

In a statement to the Shanghai Stock Exchange, it was noted that the steel sector struggled with sluggish demand in the first half of the year despite a contraction in supply. The company also warned that “the export sector will remain under pressure for the rest of the year due to rising trade protectionism and anti-dumping duties in Southeast Asia.”

Baosteel stated that a significant decline in raw material prices supported profitability this year. According to company data, between January and June, iron ore prices fell by 14.4%, coking coal prices dropped by 41.1%, and steel prices decreased by 13.5%.

A subsidiary of the state-owned China Baowu Steel Group, Baosteel produced 23.71 million tons of iron and 25.73 million tons of steel in the first half of the year. During the same period, export orders rose 9.4% year-on-year to reach 3.32 million tons.