It is reported that since weak domestic market, China’s main stainless steel producers may cut the output down to 50% in May 2008. The suggestion was submitted in a conference. Main stainless steelworks including Baosteel, Zhangpu and Lianzhong attended the conference.

However, Mr Fu Zhongzhe GM of Baosteel indicated that stainless steel business earned profit in Q1 and Baosteel expected that the profit would increase in Q2.

Mr Zhongzhe noted that Baosteel would not cut down the output in May or June 2008. He added that "We should decide to cut down the output or not according to the relationship between supply and demand. Facing current raw materials price and market condition, stainless steel products made in Baosteel would bring profit in the whole year."