Baosteel, China's largest iron and steel producer, is now warning that it's going to have to limit its production because of the power shortages now gripping this country.

The company says it's Shanghai mills are going to have limited power supplies from June to September.

However, industry insiders suggest the power crunch is going to have a limited impact on Baosteel, given that it is supposed to reduce its output during the summer anyway.

Baosteel's net profits in this first quarter were down nearly 22 percent compared with the same period last year.

Power rationing is now taking place across the country, and officials are warning that shortages are likely to worsen, as the summer peak period is now approaching.