China’s Baoshan Iron & Steel (Baosteel) reported a 6.3pct YoY decline in net profit attributable to shareholders to 4.57 bln yuan (USD 680 mln) in the first half of 2026, despite a 6.2pct increase in revenue to 160.73 bln yuan (USD 23.9 bln).
Baosteel said weak domestic steel demand and limited price improvement weighed on profitability, while rising raw material costs, driven by geopolitical tensions and energy price volatility, further pressured margins. International trade barriers, carbon tariffs and export controls also constrained export opportunities.
The company produced 23.77 mln tons of iron and 25.54 mln tons of crude steel during January-June, while sales of finished steel reached 25.68 mln tons. Its average selling price across steel products was 4,193 yuan (USD 624) per ton. Export orders rose 24.8pct to 4.14 mln tons.
Raw material costs remained elevated during the period. The company cited a 6.9pct YoY increase in the iron ore index to an average USD 107.6 per dry ton, while coking coal prices rose 23.1pct to 1,499.3 yuan (USD 223) per ton.
For the second half, Baosteel expects stronger policy support for domestic demand and continued measures to optimize steel supply. It plans to focus on marketing reforms, raw material procurement, cost reduction, differentiated products, technological innovation and digital transformation.
Baoshan Iron & Steel (Baosteel), the core listed subsidiary of China Baowu Steel Group, is a Shanghai-based integrated steelmaker producing high-end automotive sheets, silicon steel and other advanced flat carbon steel products. Baosteel produces around 52 mln tons of finished steel annually, while its parent China Baowu has overall production capacity exceeding 70 mln tons.
1 USD / 6.72 yuan