China’s Baosteel to cut output in December on sagging demand
Baosteel Group, China’s largest steel producer, will follow other steel giants in cutting its output in December due to sagging demand and falling steel prices, the China Securities Journal reported on Tuesday.
The newspaper quoted an unnamed industry expert as saying Baosteel would prolong the maintenance of its blast furnace in Baoshan District of Shanghai, which started in September.
The furnace has an annual production capacity of 5 million tons. The temporary shutdown would reduce the estimated production of pig iron by 1 million tons.
The expert said the steel maker would probably shut its low-emission COREX (Coal Reduction Extreme) furnace and medium and heavy plate production line in Baoshan District. The COREX furnace, built at the end of last year, produced 1.5 million tons of pig iron annually.
Baosteel board secretary Chen Ying said the company would fix its production in accordance with market trends and sales. Shougang Group and Wugang Group have also announced production cuts.
Tags: Baoshan, Baosteel, Shougang, steel-maker