How does Baosteel understand the developing trend and evolution of Chinese steel industry?
Rapid economic growth, industrialization and urbanization in China bring tremendous development opportunities for Chinese steel players, however, the industry is at its cyclical valley; the market becomes more and more oversupplied. Dropping steel price and soaring raw material cost squeeze the profit margin of steel companies. Domestic players are accelerating expansion, and overseas players are about to penetrate through acquisition, which all factor in tighter competition. Chinese steel industry is confronting challenges one after another. Under the instruction of “Steel Industry Policy”, Chinese steel industry is to eliminate obsolete facility, optimize structure and boost recycle economy. In such a context, Baosteel emphasizes not only capacity expansion, but also competency enhancement driven by independent innovation. On one hand the company accelerates development, on the other hand, it eliminates leg-behind facility, reduces energy consumption, develops recycle economy. Baoste
