Dai Zhihao, general manager of major Chinese steelmaker Baosteel, has stated that in the second half of the current year Baosteel's steel product output is expected to decrease due to overhaul work on its blast furnace No. 3 and on its hot and cold continuous rolling lines.
Mr. Dai also stated that steel prices would be volatile in the second half and weaker than in the first half as supply continues to outweigh demand. He added that steel demand is expected to show some improvement in the second half.
As lately announced in its first half results, Baosteel's operating revenue and net profit in the first six months this year amounted to RMB 96.1 billion ($15.7 billion) and RMB 3.703 billion ($605 million), down 1.84 percent and decreasing by 61.47 percent year on year respectively. Furthermore, in the given period Baosteel's outputs of pig iron and crude steel totaled 11 million mt and 11.41 million mt respectively.
