Shanghai-based Chinese steelmaker Baoshan Iron and Steel Co. Ltd (Baosteel) - a listed subsidiary of Baowu Group - has announced that in the January-March period of the current year it registered an operating revenue of RMB 59.973 billion ($8.5 billion), down 8.27 percent year on year, and a net profit of RMB 1.536 billion ($0.22 billion), declining by 43.63 percent year on year.
“Domestic demand for steel products decreased significantly due to the extension of the Spring Festival holidays and the rapid spread of the coronavirus pandemic worldwide,” Baosteel said in its announcement, also adding that the relatively stability of iron ore prices contributed to its reduced profit in the first quarter of the year.
Meanwhile, the company forecast that demand for steel sheet will decline further in the second quarter of the year due to the low capacity utilization rates in downstream industries as well as high inventories, which will exert a negative impact on its steel prices and profit in the second half of the year.
In 2019, Baosteel registered an operating revenue of RMB 292.06 billion ($41.3 billion), down 4.4 percent year on year, and a net profit of RMB 12.423 billion ($1.76 billion), down 42.08 percent. It said the downtrend in the steel market and rising raw material prices contributed to the decline in its profit.
$1 = RMB 7.0704