Baowu Joins Rivals in Warning of Crisis Conditions

(Bloomberg) — The world’s top steelmaker added its voice to a growing sense of alarm among China’s mills over crisis conditions in the industry due to poor demand and plunging profits.

China Baowu Steel Group warned of headwinds due to a “complex macro economy” and the severe impact of Covid flare-ups across the country, according to a posting on the group’s WeChat account. Weak demand, falling prices and declining profitability are causing “great challenges” for the sector and testing the group’s production and operations, it said.