Baosteel's net profit falls in Jan-Sep as steel spreads narrow

China's Baoshan Iron & Steel Co. (Baosteel) reported a 15.3pct YoY decline in net profit to 6.74 bln yuan (USD 1.01 bln) in January-September 2026, despite a 5.7pct increase in revenue to 245.65 bln yuan (USD 36.88 bln).

The company attributed weaker profitability to steel prices recovering less than raw material prices, narrowing the spread between selling and purchasing prices.

Baosteel produced 36.61 mln tons of pig iron and 38.63 mln tons of steel in the first nine months of 2026. Sales of commercial billets and finished steel reached 39.15 mln tons. Export orders rose by 13.6pct YoY to 5.87 mln tons, while sales of its “2+2+N” product portfolio increased by 1.12 mln tons to 26.81 mln tons. The “2+2+N” system is the company's internal categorization of its high-end, high-margin and specialized steel products.

In the third quarter, Baosteel recorded revenue of 84.92 bln yuan (USD 12.75 bln), up 4.8pct YoY, while net profit fell by 29.7pct to 2.17 bln yuan (USD 325 mln).

Baosteel said domestic steel prices fell by 1.9pct quarter-on-quarter in the third quarter, while the Platts 62pct iron ore index decreased by 7.9pct. Shanxi coking coal prices rose by 34.9pct over the same period.

Baoshan Iron & Steel (Baosteel), the core listed subsidiary of China Baowu Steel Group, is a Shanghai-based integrated steelmaker producing high-end automotive sheets, silicon steel and other advanced flat carbon steel products. Baosteel produces around 52 mln tons of finished steel annually, while its parent China Baowu has overall production capacity exceeding 70 mln tons.