Reuters reported that Baoshan Iron & Steel Co Limited is not optimistic about its performance through the first quarter of 2013 due to rising costs.

Mr Ma Guoqiang GM of Baosteel said that although steel prices have stabilized, margins would suffer from rebounding coal and iron ore prices.

He added that lower production by Japanese car makers in China and falling exports to Japan caused by the territorial dispute between the two countries will hurt Baosteel's business in the short term.