Baoshan Iron & Steel Co, China's most profitable steelmaker, said the glut in nation's steel market would not change in the short run and this would continue to weigh on the company's earnings this year.
Baosteel posted JPY 191.14 billion in revenues and JPY 10.39 billion in net profits for 2012, down 14.1% and up 41% respectively from the year before. The strong earnings growth was buoyed by spinning off unprofitable assets.
Mr Given the sluggish domestic market, Baosteel plans to invest overseas but has yet to work out details,.
Financial controller Zhu Kebing said that the company does not have stock market fundraising plans this year and may consider offering bonds or medium term notes to restructure its debts and currency basket.
Mr He Wenbo forecast nationwide crude steel output and consumption to total 737 million tonnes and 698 million tonnes this year, up 2.9% and 4% respectively from 2012.
According to Mr He, with new capacities to become operational, China's total steel making capacity is to slip three percentage points to 75% this year.
China's crude steel production has reached its peak after growing at double digit paces annually in the past decade, the National Development and Reform Commission said last week, adding that future growth would be moderate and double digit growth rates are not likely as the central government tries to restructure the economy that used to be charged by investment in infrastructure.
Of the 16 listed steelmakers that have released 2012 figures, only four posted bigger profits and six posted losses to the tune of JPY 17.69 billion. The 16 companies combined reported JPY 4.27 billion in the red, due primarily to excess capacity.
China Iron & Steel Association said that steel industry's profit was JPY 1.34 billion in January and JPY 998 million in February this year,