BAOSHAN Iron and Steel Co yesterday said steel demand in China will remain steady next year while iron ore prices will also stay high.

Ma Guoqiang, general manager of China's largest listed steel mill, said there was unlikely to be either a big increase or decrease in steel demand in 2011.

Baosteel supplies about half of China's automotive steel market and is developing new steel products to reduce the weight of cars and expand its market share.

"Over a long period, China's auto consumption will grow steadily," Ma said during an online briefing yesterday to discuss quarterly earnings.

The company over the weekend said net profit fell 16 percent to 2.55 billion yuan (US$381 million) in the third quarter of this year due to high iron ore prices and curbed demand in the property sector after the government moved to cool off home prices.