Baosteel expects pressure on iron ore supplies to ease this year
Shanghai. May 4. INTERFAX-CHINA - A slowdown in the growth of China's new production capacity is expected to ease the pressure on China's iron ore supplies, Chen Ying, vice general manger and board secretary of Baoshan Iron Steel Co. Ltd. (Baosteel), said at the company's online investor conference on may 3.
China plans to build approximately 40 million tons of crude steel capacity this year, while in 2010 the figure stood at between 50 million and 60 million tons.
Baosteel generated RMB 54.02 billion ($8.31 billion) in sales revenue in the first quarter (Q1) of 2011, up 21.83 percent from last year, Chen added. Profit fell 20.87 percent year-on-year, however, to RMB 4.17 billion ($641.41 million).
Chen attributed the drop in profit to soaring raw material prices in Q1.
Baosteel also aims to kick off production at a 1.1 million-ton oriented silicon iron production line some time next year.
- XH