The company’s performance came under pressure due to rising raw material costs driven by the Iran war and weak domestic demand.
According to a filing submitted to the Shanghai Stock Exchange, Baosteel reported a net profit of approximately 2.23 billion yuan ($326.33 million) for the first three months of the year. This figure marks a decline compared to 2.43 billion yuan recorded in the same period of 2025.
Baosteel stated that steel prices fell by 4.4% in the first quarter, while iron ore prices increased by 3.2%, putting pressure on margins. The company operates under China Baowu Steel Group, the world’s largest steel producer.
The high level of iron ore prices was influenced by rising energy prices, increased freight rates, and higher input costs due to the Iran war, which also contributed to growing global inflation concerns.
Meanwhile, steel demand in China continued to decline due to prolonged weakness in the real estate sector. In the January–March period, the country’s steel demand fell by 4.4%.
In a separate statement, the company reported that its net profit for 2025 increased by 40.53% to 10.3 billion yuan, supported by lower raw material costs and strong steel exports.
On the production side, Baosteel announced that it produced 12.23 million tons of pig iron and 13.21 million tons of steel in the first quarter. For the full year 2026, the company targets production of 48.54 million tons of iron and 51.51 million tons of steel.
Exports also showed an increase. Baosteel’s overseas orders in the first quarter rose to 1.96 million tons, compared to 1.55 million tons in the same period last year. The company’s steel exports increased by 6.8% year-on-year, reaching 6.48 million tons.
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