Chinese Major Steels Expand Crude Steel Capacity to 60-70MT in 2015

Bao Steel of China announced on June 25 the firm expands crude steel output capacity to above 66 million tonnes per year along its mid-term management plan for 2010-2015. Anshan Iron & Steel Group announced on June 24 to expand the crude steel capacity to 60 million tonnes per year by company integrations until 2015. Bao Steel will become the top steel maker and Anshan Iron & Steel the second in China while they will represent the second position after Arcelor Mittal in the world.

Chinese government announced the new steel industry policy on June 17 along which 10 Chinese major steel makers will become to account for 60% or more in the domestic steel consumption until 2015. Bao Steel and Anshan Iron & Steel expand output capacities along the national strategy and enhance productivity and buying power of raw materials.

Bao Steel plans to increases the capacity to 50 million tonnes by M&A in 2012 to cope with fluctuation of domestic and offshore steel market and rising raw material prices. The firm aims the sales at 440 billion yuan (over 6 trillion yen) in 2015. The firm’s crude steel output was 39 million tonnes in 2009 with the sales of 148.5 billion yuan. The firm accelerates development of technology, resources and application of recyclable resources.

Anshan Iron & Steel has integrated Benxi Iron & Steel, Beitai Iron & Steel so far while the integration of Pangang Group was approved by Chinese government this month. Anshan plans to supply high quality steel products for automobiles, shipbuilding and atomic power plants as well as special steel products for mold or military demand. The firm will develop domestic and offshore mines and increase self-sufficiency ratio of iron ore to over 65%.