The rating on Baosteel Iron & Steel Co. Ltd.'s (Baosteel Ltd.) reflects the company's strong market position in mainland China's steel industry, its steady increase in high-value-added products, competitive cost position, and the strong financial profile of consolidated Baosteel Group. These strengths are offset by the highly competitive and cyclical nature of the steel industry, the tight supply and rising cost of raw materials for steel production, and uncertainties associated with industry consolidation in mainland China. Baosteel Ltd. is the main subsidiary of Baosteel Group. It produced about 11.55 million tonnes of steel in 2003, and is the strongest domestic steel manufacturer in mainland China in capacity, product quality, and technology. Because of the highly fragmented nature of the industry,...
Companies mentioned in this report are: Baoshan Iron & Steel Co. Ltd.,Nucor Corp.,POSCO,Baosteel Group Corp.,Arcelor S.A.
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