Baosteel gets high orders from auto sector in May

Shanghai, May 18 (Gasgoo.com) Steel orders received by China's largest steel-maker Baosteel in May is likely to hit monthly record high at 937,000 tons, up more than 50% from orders in April, JD37.com said today.

Shanghai Baosteel International Trade Co, a subsidiary company of Baosteel Group, have sold 285,000 tons of steel to auto sector in January to May. Baosteel has more than 50% of China's domestic auto sheet market.

China's auto sales reached 1.15 million units in April, up by 25% from a year earlier, creating a new monthly record high. The country's auto sales target has been raised to 10.2 million units for 2009, up about 350,000 units over the target previously set at the year's beginning.

Earlier this year, Baosteel announced its target of retaining its 50% market share of the cold rolled sheet market for China's auto sector.

Baosteel Group chairman Xu Lejiang said on Saturday that China's steel industry may post a loss for 2009 as overproduction persists in a weak global market, but Baosteel would pursue further consolidation and restructuring to bolster its competitiveness.

As the world's largest steelmaking country, China has vowed to crack down on its steel producers that continue to raise output despite an oversupplied market.