.Baoshan Iron & Steel Co., Chinas biggest publicly traded steelmaker, said domestic steel demand will be maintained in 2011 as economic growth spurs shipments to automobile companies.
Steel demand will keep steady next year based on our view on the macro economy and the industry, General Manager Ma Guoqiang said today in an online meeting with investors. We wont see a big increase, yet we are unlikely to see conditions worsen.
Baoshan Steel, which controls half the local market for automotive steel, on Oct. 29 forecast the highest profit in at least three years on reviving demand. Chinas economy may grow 9.5 percent next year, the China Securities Journal reported today, citing Fan Jianping, chief economist at the State Information Center.
Baoshan gained as much as 2.2 percent today in Shanghai after Shenyin & Wanguo Securities Co. raised its rating to buy from outperform on the improved outlook for steel demand from automobile and home-appliance makers. The stock rose 1.5 percent to 7.28 yuan as of 12:10 p.m. local time.
Chinas auto consumption will grow steadily over a long period, Ma said. Automotive steel has been one of the most profitable products.
Chinas apparent crude steel consumption fell 4.8 percent to 194.6 million metric tons in the July to September period from a year earlier, according to the China Iron and Steel Association. Demand rose 18 percent in the first five months of 2010 from a year earlier, it said
The nations steel output dropped to 47.95 million metric tons in September, the lowest level this year, after the government stepped up measures to rein in property speculation and limited power supplies to mills.
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