China's Baosteel Sees Pressure After Steady First-Half Profit.

Baoshan Iron & Steel Co., the listed unit of the world's largest steel producer, has reported a steady profit in the first half of 2024. However, the company warns of growing pressures on the steel industry as China's economy shifts away from construction-led growth, impacting steel demand. Baosteel's parent company, China Baowu Steel Group Corp., has also expressed concerns about the severity of the current situation. The steel industry is facing challenges such as oversupply, weak demand, high costs, and low prices. Baosteel expects the industry to continue facing pressure in the second half of the year. While Baosteel has performed relatively well, other companies in the industry are experiencing more difficulties. BHP Group Ltd., the world's largest miner, has highlighted an "uneven recovery" in China, and Chinese mills have incurred significant losses. Additionally, exports, which have been crucial in absorbing China's surplus steel, are facing threats from trade restrictions and tariffs imposed by countries like Canada. Baosteel acknowledges the uncertainties in exports due to tariff barriers and rising international trade protectionism. [Extracted from the article]

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