Posted on 29 Aug 2025
Baoshan Iron & Steel Co., Ltd. (Baosteel), the listed arm of the world's largest steelmaker China Baowu Steel Group (Baowu), saw its net profits for the first half of 2025 climb by 7.36% on year to Yuan 4.88 billion ($637.31 million), according to the company's latest mid-year report released on August 27.
The steel giant attributed the rise in its profits to strengthened cost control and better coordination between procurement and sales sections.
Based on its published results, Baosteel ranked top in revenues and net profits among the 25 Chinese steelmakers that had released their interim reports, according to Mysteel's tracking.
Baosteel's on-year rise in net profits was achieved against its on-year fall in business revenues, these over January-June having declined by 7.28% on year to reach Yuan 151.37 billion, according to the release.
China's steel industry has been faced with challenges so far this year, the report warned, citing global economic uncertainties, upgraded tariff war, persistent tepid domestic demand and limited price recovery.
Over January-June, China's crude steel output slipped by 3% to total 515 million tonnes, while world crude steel output dropped by 2.2% to 934 million tonnes, as reported.
Against this backdrop, Baosteel produced a total of 23.71 million tonnes of hot metal and 25.73 million tonnes of crude steel, both down by a small 0.98% from the same period last year, while sales of semi-finished and finished steel products totalled 25.31 million tonnes, down by 0.99% on year, Mysteel calculated based on Baosteel's data.
Meanwhile, the company's steel export volume jumped by 9.4% on year to reach 3.32 million tonnes in H1, the report showed.
The report underscored the company's better operating efficiency, with net cash flow reaching Yuan 16.65 billion in the first half, up 190.1% on year. By the end of June, the company's debt-to-asset ratio stood at a healthy 39.87%, which provided a solid buffer against market volatility, the report said.
Looking ahead, China's long-term economic growth momentum is expected to be sustained under the stimulus of positive macro-economic policies, Baosteel observed, while noting the gradual phasing out of obsolete production capacity and improving industrial chains in the steel industry.
With trade protectionism and anti-dumping measures rising in the international market, Baosteel will strengthen its technological edge, enhance coordination between its four major steelmaking bases and deepen reform on feedstock procurement, the report declared.
Baoshan Steel manages four production bases in China, comprising its Baoshan works in East China's Shanghai, Qingshan in Central China's Wuhan, Dongshan in Zhanjiang of South China's Guangdong, and Meishan in East China's Jiangsu. Its key products are auto sheet, electrical steel, oil and gas pipes, and high-end flat steel such as heavy plate and tinplate. Its consolidated results include the performances of its 12 subsidiaries, Mysteel Global notes.
Source:Mysteel Global
