Baosteel Co., Ltd. is a core listed company under China Baowu Steel Group, primarily engaged in the production of high-quality carbon steel. Founded in 1978 and headquartered in Shanghai, the company is one of China’s most modern steel producers. As a key member of the Baowu Group, Baosteel is not only a leader in China’s steel industry but also enjoys high global brand recognition. Committed to its mission of “changing people’s lives,” Baosteel continuously enhances product value and quality across its six strategic product lines: automotive steel, electrical steel, energy and major engineering steel, high-grade sheet steel, tinplate, and long products.
Comprehensive Scale and Financial Strength
Operating Scale
- Total Steel Production Capacity: Baosteel boasts a complete industrial chain encompassing ironmaking, steelmaking, continuous casting, and steel rolling. In the first half of 2024, the company produced 24.117 million tons of iron and 26.306 million tons of steel, with sales of 25.514 million tons of commercial billets and steel products. This robust production capacity lays the foundation for the company to maintain its industry leadership.
- Financial Performance: According to Reuters Financial data, Baosteel’s operating revenue in 2024 will be approximately RMB 322.116 billion, down from RMB 344.868 billion in 2023, but still maintaining its leading position in the industry. Net profit in 2024 is expected to be approximately RMB 7.362 billion, down from RMB 11.944 billion in 2023. Total assets in 2024 will be RMB 364.874 billion, and total liabilities will be RMB 164.325 billion. Based on the three-year financial data, although Baosteel’s revenue and profits have declined due to market fluctuations, its overall operations remain stable, and its asset-liability structure is relatively sound.
- Profitability: In the first half of 2024, Baosteel achieved a total profit of RMB 6.23 billion. Amidst widespread profit pressure in the steel industry, Baosteel has maintained strong profitability through cost reduction, efficiency improvement, and product mix optimization.
Strategic Positioning
Baosteel’s strategic positioning is to be “the world’s most competitive steel company.” The company focuses on developing high-end products, particularly automotive steel, electrical steel, high-grade sheet, and energy and major engineering steels. It strives to maintain its leading position in the domestic market and actively expands into overseas markets. Baosteel’s R&D investment has consistently exceeded 3% of annual sales revenue for many years, and technological innovation is the driving force behind the company’s long-term development.
Stainless Steel Business
Business Overview
While carbon steel is Baosteel’s core business, the company also has a presence in stainless steel. Its subsidiaries, Baosteel Desheng Stainless Steel and Ningbo Baoxin Stainless Steel, serve as key platforms for Baosteel’s stainless steel business.
- Baosteel Desheng Stainless Steel, located in Luoyuan County, Fuzhou City, Fujian Province, is the core base for Baosteel’s stainless steel business. Desheng Stainless Steel owns three AOD refining furnaces and multiple hot and cold rolling production lines, encompassing a stainless steel production capacity of 3 million tons.
- Ningbo Baoxin Stainless Steel, located in Beilun District, Ningbo City, primarily produces cold-rolled stainless steel coils with an annual production capacity of approximately 660,000 tons. It also has a production capacity of approximately 10,000 tons of stainless steel welded pipe. Production and Latest Data
Desheng’s production reaches a new high: According to the Fujian Iron and Steel Association, Baosteel Desheng’s stainless steel production will increase by 23.03% year-on-year in 2024, exceeding 3 million tons for the first time. Meanwhile, steel production will increase by 5.9%. This record demonstrates that the Desheng base has become a leading domestic stainless steel producer through technological transformation and expansion.
Capacity Plan: Public information indicates that after the expansion, Baosteel Desheng will be equipped with one 110-ton AOD furnace and three 120-ton AOD furnaces, bringing its total stainless steel production capacity to 3.06 million tons, replacing its older 70-ton and 80-ton converters.
Products and Applications
Baosteel’s stainless steel products primarily focus on austenitic and ferritic grades, including 304/304L, 316L, and 430. They are widely used in the petrochemical, shipbuilding, power generation, architectural decoration, and food equipment industries. Baosteel Desheng focuses on developing high-value-added products, centered around high-end 3Cr13 stainless steel, duplex steel, and nickel-based alloys, and is committed to expanding its market share in the new energy, power generation, and marine engineering sectors. Ningbo Baoxin specializes in cold-rolled thin steel sheets, targeting industries such as home appliances, kitchen and bathroom fixtures, and automotive interiors.
Key Competitive Advantages
- Full-Process Manufacturing and Technological Advantages: Baosteel has established comprehensive steel production bases in Shanghai Baoshan, Wuhan Qingshan, Zhanjiang Dongshan, and Nanjing Meishan. Equipped with advanced blast furnaces, converters, electric arc furnaces, and rolling mills, Baosteel is able to achieve efficient production across all stages of ironmaking, steelmaking, hot rolling, and cold rolling. The company implements an intelligent manufacturing strategy, employing robotics and intelligent logistics systems in the steelmaking process, significantly improving product quality and production efficiency.
- High-End Product Advantages: Baosteel has long been engaged in high-end sectors such as automotive steel, electrical steel, and silicon steel, holding over 50% of the domestic automotive steel market share. While stainless steel is not its core business, Baosteel, through Desheng and Baoxin, has established a comprehensive stainless steel product line, covering diverse needs, from standard sheet and coil to high-end duplex steel.
- Market and Customer Resources: Baosteel has a large customer base both domestically and internationally, having established long-term partnerships with major enterprises such as SAIC, FAW, Haier, Midea, and CNPC, while actively expanding into overseas markets. The company’s comprehensive marketing network and after-sales service ensure customer loyalty.
Green Transformation and Social Responsibility:
Baosteel actively responds to the dual carbon goals and promotes ultra-low emissions and carbon reduction initiatives. The company is constructing photovoltaic power generation and waste heat recovery projects at multiple sites and implementing a carbon emissions management system, striving for “carbon reduction and green manufacturing.”
