"The global steel industry is likely to experience a downturn similar to the period following the oil crisis in the 1970s, while the Chinese steel industry will enter a low-growth period," Baosteel chairman Xu Lejiang commented during the 2010 Baosteel work conference.
Mr. Xu said that the low growth is the result of the imbalance between supply and demand, reduced exports, and also national economic structural adjustment.
According to Mr. Xu, this is so far the most difficult time for China's steel industry, and we are just at the beginning. As a result, Baosteel need to speed up its reform steps in 2010.
During the past year, Baosteel achieved a net profit of RMB 14.5 billion ($2.2 billion), i.e., 157.6 percent of its annual target