Xu LeJiang, the President of the Chinese steel giant Baosteel said on September 15th that the Chinese steel enterprise to face loss again in September.
In fact, it's used to be the peak season for Chinese steel industry during September and October; however, the situation reversed this year.
According to the statistics gathered by China Iron and Steel Association, the eighty steel enterprises only gained profits during March and May among the first seven months of this year.
Also, China's daily output of steel products was at 2.54 million tons, up by 1.4% year on year, touching the lowest level over the past twelve months, according to the data released by the National Bureau of Statistics of China (NBS).
Xu LeJiang pointed out that the market situation and structure have been changed due to oversupply and environmental issues.
Therefore, Baosteel has made up an exit strategy during 2010 through 2015 in order to meet the market situation.
It's learned that the Shanghai city government has inked an agreement with Baosteel to adjust the structure of steel bodies in Baoshan region during 2012 through 2017.
Once the structure adjustment is completed, the annual iron production in Shanghai region will be reduced by around 5.8 million tons and the steel output will be cut by around 6.6 million tons, making the consumption of coals to be decreased by 3 million tons.