Baosteel Q1 Operating Profit per Ton Up 22% YoY to USD 39, Cost Control Shields Against Weak Demand

Baosteel Q1 2025: Operating Profit per Ton & Market Outlook

1. Operating Profit per Ton (USD)

Q1 2025 Total Operating Profit: RMB 3.47 billion

Sales Volume of Steel Products: 12.23 million tonnes

Operating Profit per Ton:

RMB 3.47bn / 12.23mt = RMB 284/ton

At ~7.2 CNY/USD, USD ~39.4/ton

Q1 2024 Operating Profit: RMB 2.84 billion

Similar volume implies RMB ~233/ton or USD ~32.4/ton

Year-on-Year Growth:

Operating profit per ton rose ~22% YoY in USD terms

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2. Steel Market Insights

Domestic steel prices dropped ~9.9% YoY, yet Baosteel improved profitability due to:

Strong cost control in ironmaking and smart manufacturing

Significant fall in coking coal prices (e.g. -36.1% YoY for Shanxi premium)

Crude steel production in China grew slightly (+0.6% YoY), sustaining oversupply concerns

Export orders reached 1.55 million tonnes (+2.3% YoY), showing a pivot to external markets amid domestic weakness

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3. Outlook

Despite improved Q1 margins, future profitability will remain under pressure if domestic demand stays soft

Baosteel is advancing:

Smart transformation (53 new smart applications in Q1)

Green certifications and energy-saving processes

R&D in ultra-high-strength steel and international sales