Baosteelexpectsautosteeldemandtostayrobust。
WerecentlymetBaosteel’smanagementtogetfurtherinsightintothesteelindustry.ManagementsaidBaosteelhasadominantpositioninthemedium-tohigh-endautoplatemarketwithadomesticvolumeshareof50%.BaosteelestimatesautosteeldemandCAGRof7.17%over2011-20andautosalesvolumeCAGRof10%over2011-15.Itbelievestheincreasedcompetitionmayputmarginsandpricesunderpressure,butincreasingsalesvolumewillimproveoverallprofitabilityoftheGroup.Steelwillremainthedominantmaterialforautomotiveforthenext10years.AutomotiveorderswereverystrongforBaosteelin1Q14,allowingittoincreasepricesamidanenvironmentofdeclininggeneralsteelprices.
Expansionstrategy。
BaosteelsaiditskeyfocusforthenexttwoyearswillbetheZhanjiangproject,whichisduetostartoperationsin2H15.TotalinvestmentisRMB41.5b(RMB5,000/tsteel).Totalsteelcapacityis8mt,4mt-5mtofwhichisautosteelplate.ThecompanybelievesGuangdongwillseeaccelerationinautoproductioncapacityexpansionthroughoverseasautoJVs.Baosteelistargetingtoexportonly10%ofitsproductionvolume.Forinternationalexpansion,Baosteelsaiditwouldlfocusonexpandingitsservicecentresinthemediumtermandthatitplanstoset-updownstream(notupstream)capacitylocallyinthelongtermandthatitwouldworkincooperationwiththelocalplayerstoavoidpricewars.
彈簧展
