Financial Information

II. Market dynamics
Manufacturing industries in major economies such as the U.S., Europe, and Japan have resumed expansion, with corporate investment and consumption momentum continuing to recover. China's Two Sessions resolved to expand fiscal spending and strengthen domestic demand. In Taiwan, artificial intelligence technology applications and exports show strong performance, and export orders for traditional industries have also recovered. China is advancing a dual-control system for the volume and intensity of carbon emissions, while simultaneously regulating high energy consumption and high emission projects and accelerating efforts to remove outdated production capacity. Crude steel production in January and February declined by approximately 3.6% YoY. The tightening of supply has also brought favorable news to the steel market. Steel prices in the U.S. and Europe had already risen, with cumulative increases of US$60~80 this year. Baosteel's list prices have reached a rise of 400 RMB (approximately US$58) since January. Global steel price momentum remains strong. However, the Middle East conflict has caused a surge in international crude oil prices, while rising shipping costs and energy costs have pushed up commodity prices, leading to a continued increase in steelmaking costs. Subsequent changes in steel mill operations still require careful addressing. The overall performance shows stability with prospects to advance.