Shanghai Baosteel Group Corporation, usually known as Baosteel is a state-owned steel company which is one of the biggest steel producers in the world, based on output. Its 2000 initial public offering in Shanghai was the largest in China at the time even though it was restricted to domestic investors.
Steel prices to weaken, Baosteel GM says
Mainland steel prices are expected to weaken in the second half of the year as supply continues to outstrip demand, a senior executive with Baoshan Iron & Steel, the country's biggest listed steelmaker, said yesterday.
Overcapacity on the mainland, which produces nearly half the world's steel, has reduced the profit margins of domestic steelmakers. Baosteel reported a 61 per cent drop in first-half earnings on Friday.
With about 300 million tonnes of surplus steel capacity - equivalent to nearly twice the output of the European Union last year - Beijing is implementing measures to end the glut including curbing the sector's access to credit.
Baosteel general manager Dai Zhihao told analysts at a briefing that steel prices would be "volatile in the second half and weaker than the first half".