According to the executive officer of Baostel, the firm predicts that the third quarter will be the most difficult period in this year, but the company still believes it can avoid losses in the period.
He Wenbo, the Chairman of Baosteel pointed out that the steel price will not recover in the second half this year, despite the sharp drop in the price of iron ore. The Chinese steel mills are still facing strong pressure by the larger drop in the price of steel.
Baosteel earned US$374.6 million in the first half this year, a decline of 53% year on year mainly due to weak demand and oversupply in the Chinese steel sector.