Baosteel Group, the parent of China's biggest listed steelmaker, expects a moderate increase in steel demand this year, General Manager He Wenbo said.
"The steel industry hit a trough last year," He, who's also chairman of unit Baoshan Iron and Steel Co, said in Beijing yesterday. "This year would be better, although we don't expect" a large increase in demand, he said.
Demand may be hurt after China on Friday unveiled measures to tame home prices, including a 20 percent tax on individuals selling properties, "but if you look over the long term, the urbanization process will support steel demand positively," He said.
Shanghai-based Baosteel Group may earn over 10 billion yuan (US$1.6 billion) in profit this year, he said, without specifying if it is before or after tax. The company won't add new capacity in Shanghai and is moving some plants out of the city to comply with environmental norms, He said.