Baosteel produced 13.2 million tons of steel in Q1

The company's net profit for the same period fell by 8.6% y/y

China’s largest steelmaker, Baoshan Iron & Steel Co (Baosteel), produced 13.2 million metric tons of steel and 12.2 million metric tons of pig iron in the first quarter. The company’s steel exports rose 6.8% year-on-year – to 6.5 million metric tons, according to Reuters.

During this period, the company received nearly 2 million tons of overseas orders for steel products, compared to 1.55 million tons during the same period in 2025. In total, Baosteel plans to produce 51.5 million tons of steel and 48.5 million tons of pig iron in 2026.

Baosteel’s net profit for the first quarter of 2026 fell by 8.6% year-on-year – to $326.3 million. The main factors contributing to this decline were geopolitical instability in the Middle East and the continued weakness of China’s real estate sector.

As Reuters notes, the outbreak of active hostilities in Iran caused a sharp spike in oil and natural gas prices, which directly impacted the cost of steel production. Additionally, disruptions to shipping routes in the region led to delays in raw material deliveries and rising freight costs.

“We are facing an unprecedented combination of high input costs and low prices for finished products. The war in Iran has sent shockwaves through the energy market, which we are feeling directly on the shop floor,” said a Baosteel representative.

The situation is further complicated by conditions in China’s domestic market. Despite government support measures, the construction sector—the main consumer of steel—shows no signs of recovery. This is forcing Chinese manufacturers to increase exports, leading to trade disputes and the imposition of anti-dumping duties by other countries.

As a reminder, in mid-April, Baosteel raised prices for May sales of certain key flat steel products, including hot-rolled coil (HRC), by 100 yuan per ton ($15/t) for the domestic market.

As reported by GMK Center, steel production in China totaled 960.8 million tons in 2025, down 4.4% compared to 2024. The decline was a result of the protracted crisis in the real estate market, which significantly curtailed domestic demand for steel products.