Baosteel reports record quarterly profit

The largest steel manufacturer in China Baoshan Iron & Steel Co., Ltd. (Baosteel) reported the highest quarterly profit, supported by strong demand following the pandemic and stimulating global monetary policy.

The company’s net profit rose significantly by 276.76% to 15.08 billion yuan in the first half of this year compared to the same period last year. In addition, it reported second-quarter profit of 9.68 billion yuan, up 79% from the previous quarter. Baosteel said the country’s economy performed well, as did steel demand in the downstream segment. Steel consumption in Europe and the United States also increased significantly. In addition, steel prices are supported by monetary easing and carbon reduction targets.

However, the company saw that the steel price could decline in the second half of the year due to the uncertainty of pandemics and plans to cut steel production.

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