Baosteel's Thoughts about Future Development

The imbalanced supply and demand situation, the high level of inventory and higher cost pressures have become the biggest hurdles to the development of the Chinese steel industry. The domestic sector has ushered in a plateau period of escalated competition in the market full of homogeneous products.

Under such circumstances, the ultimate, unavoidable ways to upgrade the industry, as argued by Baosteel, seem to be seeking competition among varied products, the extension of value-added services and an early practice of low carbon tactic.

Baosteel has managed to excel its rivals by developing the ultra-strong and lightweight steel that can help the auto industry not only remove its safety concern, but reduce car's emissions.

The group has also developed the technology of recycling the hot slag. The heat from one ton of the slag amounts to that of 60 kg standard coal. Steel that is recovered from the slag can be recharged into the furnace as scrap. Other useful metals such as manganese, phosphor and silicon can be extracted and, through blowing under high temperatures, turned into heat insulating building materials.