Baoshan Posts Quarterly Loss, Doesn't Expect Additional Capacity-Cutting Moves
10/30/2015 - China’s Baoshan Iron and Steel Corp. lost 920.5 million yuan, or US$145 million, during the third quarter, its first quarterly in nearly three years, according to the Reuters news service.
During a briefing to discuss its results, Baoshan CFO Zhu Kebing said the company has closed its 550,000-metric ton Baotong plant, but has no further plans to curtail production, Reuters reported.
Dai Zhihao, Baosteel’s general manager and president of its board of directors, said that while he expects Chinese steel capacity to be curtailed, progress is likely to come slowly.
"Although new production capacity construction has been restricted well, the elimination of existing capacity has been held back for a variety of reasons and it is hard to be optimistic," he said, according to Reuters.
Dai Zhihao, Baosteel’s general manager and president of its board of directors, said that while he expects Chinese steel capacity to be curtailed, progress is likely to come slowly.
"Although new production capacity construction has been restricted well, the elimination of existing capacity has been held back for a variety of reasons and it is hard to be optimistic," he said, according to Reuters.
