Baoshan Iron & Steel Co., known as Baosteel, reported nearly flat net profit for the first half of 2024, earning approximately 4.55 billion yuan ($638.58 million). This figure represents a slight decline of 0.17% compared to the same period in 2023, when profits fell by 41.6% due to sluggish demand and high raw material costs.
As China’s largest listed steelmaker, Baosteel attributed its relatively stable profit to strong overseas orders and effective cost-cutting measures, which helped counterbalance weak domestic demand stemming from a prolonged property crisis and slower infrastructure growth.
The company highlighted that domestic steel demand has remained subdued, with lower-than-expected recovery in downstream consumption sectors. Looking ahead, Baosteel anticipates continued pressure from industry oversupply in the latter half of the year.
In the first half, Baosteel achieved cost savings of 4.56 billion yuan and produced 24.12 million metric tons of iron and 26.31 million tons of steel, slightly down from 24.27 million tons of iron and 25.94 million tons of steel during the same period in 2023. Notably, Baosteel’s overseas orders for steel products reached a record high of 3.04 million tons in the first half.