Zhang Jingang, deputy general manager of China’s biggest steelmaker Baowu Group, stated at an industry news conference held by the China Iron and Steel Industry Association (CISA) on February 22 that the company’s output will indicate a year-on-year drop of eight percent in February and will decline by five percent or 1 million mt year on year in the first quarter due to the outbreak of coronavirus. Meanwhile, Mr. Zhang estimated that Baowu Group’s profit in the first quarter would decrease by RMB 2.0-3.0 billion ($0.29-0.43 billion) compared to the same period last year.
In addition, Chen Shaohui, executive director of China’s biggest private steelmaker Shagang, said its output will decrease by around nine percent in February and by five percent in the first quarter of this year due to the coronavirus negatively affecting transportation, raw material purchases and product sales.
The CISA said at the conference that demand for steel in China in the first quarter would fall significantly, but would pick up rapidly in the second quarter backed by a series of government stimulus policies.
