Baosteel plans to produce 52.6 million tons of steel in 2025

China’s largest steelmaker, Baoshan Iron & Steel (Baosteel, a unit of China Baowu Steel Group), plans to produce 52.61 million tons of steel and 48.79 million tons of pig iron in 2025, respectively. Reuters reports with reference to the company’s report for Q1 2025.

In January-March of this year, Baosteel produced 12.85 million tons of steel and 11.55 million tons of pig iron.

In the first quarter, the company received foreign orders for steel products worth 1.55 million tons. At the end of 2024, the steelmaker shipped a record 6.07 million tons (+3.9% year-on-year).

Baosteel reportedly increased its net profit by 26.4% year-on-year to about 2.43 billion yuan ($333.4 million) in the period under review, thanks to lower costs.

“Despite the challenges of weak demand and falling steel prices, the company managed to reduce costs thanks to a sharper drop in coking coal prices than steel prices,” Baosteel said in a statement to the Shanghai Stock Exchange.

The Chinese steelmaker notes that this year the external environment will be more challenging and uncertain, with risks of trade tensions remaining. It states that profitability will face continued downward pressure due to the mismatch between supply and demand.

Baosteel expects a nationwide production cut this year due to external pressures on the industry, which is already struggling with overcapacity and weak demand, said Cai Yanbo, deputy general manager of the company.

However, Cai does not predict that the cuts will be implemented this month or next month. The company has appealed to the relevant authorities to avoid a one-size-fits-all approach when controlling production.

A 50 million tonne reduction in steel production, which the market is talking about, would help balance the situation by supporting steel prices and putting pressure on raw material prices.

Baosteel intends to increase steel exports to 10 million tons per year by 2028. The company believes that its advantages in the global market are its wide product range and well-established international marketing network.