Inner Mongolia Autonomous Region-based Chinese steelmaker Baotou Iron and Steel (Baogang Group) has announced that its heavy rail output is expected to decline by 40 percent year on year in 2012.
In 2011, Baogang Group's sales revenues from beam products accounted for 10.87 percent of its overall sales revenues, with heavy rail being the most profitable product among its beam production. Currently, the steelmaker has two heavy rail production lines for 43-75 kg/m rails, with annual output capacities of 600,000 mt and 900,000 mt respectively.
Heavy rail sales of the company both at home and abroad are currently on the low side. In the first quarter of this year, Baogang Group's rail exports totaled 85,516 mt, down 40.72 percent year on year, with the export revenue in question down 42.18 percent year on year.