Baosteel Profits Hit Fresh Record in Second Quarter

The company press release noted that the steel consumption rose substantially in Europe and the U.S.

SEATTLE (Scrap Monster): Leading Chinese steelmaker, Baoshan Iron & Steel Co. Ltd (Baosteel) posted highest ever quarterly net income in the second quarter of the current year. The boosted results were mainly on account of global policy stimulus following the Covid-19 pandemic.

The Q2 net profit surged higher by nearly 79% from the first quarter to hit 9.68 billion yuan, said a recent filing to the exchange. The company’s profits were up significantly by 277% to 15.08 billion yuan during the initial six-month period of the year.

Steel Output on the Rise Despite Capacity Cuts, Says Data

The company press release noted that the steel consumption rose substantially in Europe and the U.S. The downstream steel demand remained robust during the first half. The rising steel prices also led to increased production, despite the Chinese administration’s resolve to cut crude steel production to enable reduced carbon emissions. Incidentally, Baosteel produced 22.74 million tonnes of iron and 26.23 million tonnes of steel during January to June this year.

The steelmaker foresees dip in domestic steel prices, fuelled by pandemic-related uncertainties, during the second half of 2021. Meantime, steel demand is likely to witness a short-term rebound during the final quarter of the year.

Baosteel announced that it has approved plans to boost its silicon production in a phased manner.