Baosteel has reduced its steel production targets

China’s largest steel producer, Baoshan Iron & Steel (Baosteel), has announced an adjustment to its steel production target from 80-100 million tons to over 80 million tons for the country’s next five-year program (2026-2030). This was reported by SteelOrbis.

As noted by the company, instead of racing to expand capacity, Baosteel will focus on unlocking the value of existing resources through synergy.

In addition, the steel producer aims to export 6 million tons of rolled products by the end of this year. In January-September, this figure increased by 10.9% to 5.17 million tons, so in 2025 it is likely to exceed the stated target.

Baosteel, writes Yieh Corp, plans to continue its rigorous and strategic growth plan. The steel producer also noted that there are few opportunities for high-quality domestic mergers and acquisitions. The long-term foreign goal is to acquire more than 5 million tons of capacity, but only if the timing and profitability of the investment are carefully considered.

In the third quarter, Baosteel more than doubled its net profit compared to the same period last year, reaching 3.08 billion yuan ($432.4 million). In July-September, the company produced 12.77 million tons of pig iron and 13.06 million tons of steel.

As GMK Center reported earlier, China is taking a measured approach to reviving its metallurgical industry, improving prospects for high-end companies while avoiding steps necessary to significantly reduce steel supplies. The future of the country’s industry will likely depend primarily on demand.