Baosteel shares: the export of hot rolls driven by the conflict between Russia and Ukraine will reasonably arrange the export of products in the future.

A few days ago, Baosteel shares said in a survey by investors that due to the impact of the war between Russia and Ukraine, there is no need for supply and demand for hot rolls in Europe, and there is a large demand for imports. Chinese steel enterprises have recently increased the export volume of hot rolls, and domestic infrastructure investment will also boost part of the demand. The follow-up is neutral and optimistic. But at the same time, Baosteel said that due to low carbon, environmental protection, Russia-Ukraine war and other factors, alloy, non-ferrous, energy and other costs remain high, and it is expected that these costs will continue to operate at a high level for some time in the future. The rise in these costs did not attract attention in the past, but it did significantly affect profitability.

At the same time, Baosteel said that in terms of current exports, due to the impact of rising steel prices in Europe, the company will comprehensively consider the impact of domestic and foreign price differences, export tax rebate policy, overseas long-term strategic customer supply, and so on, and reasonably arrange the export of products in order to maximize the efficiency of the enterprise.

Baosteel is the largest and most modern iron and steel conglomerate in China. The company specializes in producing iron and steel products with high technical content and high added value. In automotive steel, shipbuilding steel, oil, gas production and transportation steel, household appliance steel, electrical equipment steel, boiler and pressure vessel steel, food, beverage and other packaging steel, metal products steel, stainless steel, special materials steel and high-grade construction steel and other fields, Baosteel has become a major steel supplier in the Chinese market, and its products are exported to more than 40 countries and regions in Japan, South Korea, Europe and the United States.

Baosteel expects the steel industry to continue to improve in the second quarter of 2022. The first half of this year is more cost-driven than demand-driven in the first half of 2021.