Baosteel Co., Ltd. said on an interactive platform on November 21 that the company believes that the current iron ore price is deviated from fundamentals and that in the long run, iron ore prices should return to a reasonable range. Specific response measures are multi-pronged and require the joint efforts of governments, industries, enterprises and other parties.
Baosteel Co., Ltd. also stated that the company implements an extremely low inventory model and continues to promote differentiated ore blending, increasing the proportion of non-mainstream, cost-effective ore, and dynamically adjusting the iron ore proportion according to changes in raw material costs.
How do you view the industry concentration of domestic steel companies? Baosteel Co., Ltd. pointed out that the current CR10 of the domestic steel industry is around 43%, and there is room for improvement compared with international peers. The government’s goal is to reach 60%-70% by 2025. The issue of concentration in the steel industry requires joint efforts from government supervision, industry self-discipline, market regulation and other aspects, and the company will also actively participate in it.
Baosteel Co., Ltd. stated that the steel industry, as the midstream of the entire industry chain, is expected to undergo substantial changes in the industry’s structure as the concentration of the industry gradually increases in the future, thereby rationally optimizing the profit distribution pattern of the upstream, midstream, and downstream industry chains. The company’s main M&A directions in the industry include steel assets within Baowu Group, steel assets outside Baowu Group, steel assets in some subdivisions, and mergers and acquisitions of overseas steel plants. It continues to look for suitable targets at home and abroad, with relevant The project is in progress.
