Baoshan iron & steel: accelerate overseas steel base layout

Despite last year's nearly hundred million income depends on the sale of assets, profits of baosteel can still increase over the previous year, but this year the steel market continues to serious, or make plans to accelerate the transformation of the company.
On Friday, baosteel released 2012 annual report, implement belonging to shareholders of listed companies net profit of 10.39 billion yuan, increasing 41.1% year-on-year, mainly benefit from the company sell the stainless steel, special steel group related assets revenue of 9.58 billion yuan. And after deducting non-recurring gains and losses, the company net profit attributable to shareholders of listed company of 4.72 billion yuan, down 32.7%.
Explained in baosteel held 2012 annual results yesterday during the meeting, chairman of baosteel He Wenbo expects the company in the first quarter performance is generally stable, but the steel industry this year is still faced with severe market pressure.
He Wenbo said that in the first quarter of this year, steel prices have rebounded, but at the same time, the original fuel prices are also high, especially iron ore prices, compared with last year's lows, up more than 50%, in the first quarter ore prices compared to last year's fourth quarter also has a relatively large increase.
For this year's iron and steel industry as a whole moves, He Wenbo think is still oversupply. "We expect 2013 crude steel production is about 737 million tons, up 2.9%; apparent consumption of about 698 million tons, the growth of around 4%. Considering the 2013 annual capacity growth, expected capacity utilization at 75% in 2013."
He Wenbo pointed out, however, is still bullish on the prospect of China's iron and steel industry, baosteel but the company also offers from steel to the transformation direction of materials, information service, e-commerce, and explore the materials of investment services, etc.
He Wenbo revealed that baosteel has completed a new round of planning (2013 ~ 2013), clearly put forward to accelerate the e-commerce, information industry, new material base construction, resources, investment, and accelerate the strategic layout of iron and steel base overseas.
In the aspect of the development of new materials, the main can accelerate steel new materials research and development and manufacturing, replace existing products with higher performance of steel products; In overseas steel base layout, He Wenbo think North America and South America, southeast Asia and South Asia, including Africa there are opportunities and potential, however, the company there is no specific overseas steel base investment plans.