Steelmaker to boost e-commerce business

Baosteel Group Corp will further diversify its shareholder structure to introduce investors and develop the company's e-commerce platform in response to its falling share value.

Baosteel, Aurizon bid $1.3b on mine

China steel demand still growing, but at slower pace

President He Wenbo said at a shareholders meeting that Baosteel will focus on its major steel business and accelerate its e-commerce and information technology units, the China Securities Journal reported on Monday.

The company was awarded the first online payment license for a company in China's industrial sector and entered the steel e-commerce business earlier than others.

Easterpay, a Baosteel's e-commerce business sector, had total online payments of 5 billion yuan ($811 million) in the first quarter, up 360 percent year-on-year.

Many Chinese steelmakers are looking to develop their non-steel business to offset first-quarter losses from core operations. Weak domestic steel demand will continue in the second quarter, the China Iron and Steel Association forecasts.

Seasonal growth in China's steel demand is ending with the approach of summer and little improvement is expected in May compared with April, according to Tomas Gutierrez, Platts managing editor for China metals.

"Both long- and flat-steel traders indicate they're reducing inventories to minimize risk and financing costs in May," said Gutierrez.

Platts is an international commodities information service.