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UScoilbuyersshunimportoffers
Europeanhotrolledcoilwasofferedat$640 670/s.t ($705739/t) cfr Gulf of Mexico last week, well below domestic spot prices of $730750/s.t. However, the import offers were deemed uncompetitive as they would not be delivered until May or June. "It was cheap enough to warrant interest, but the leadtimesaretoogreat,"onebuyersaysof import offers. "You can be $100 below domestic, but if the leadtime doesn't work..." Domestic HRC lead times have shortened since the start of the year to around 5.5 weeks, SBB notes. "This is obviouslyasignthatordersarenotasstrong as one would hope, but I think that it is possible that this could simply further the issuethatimportleadtimesaretoofarout," a southern US broker says. Domestic spot prices have remained level after a rapid increaseinpricesloststeaminJanuary.
SBBWorldSteelPriceTracker
08Feb12=251
Jan2000=100
Source:SBBPriceTrackers
Chineserebarcappedbyweakdemand
Beijingspotrebarpricesweredownslightlylast week (see page 4) after demand remained weakattheendofthelunarnewyearholidays. Wearewaitingtoseeifenduserdemandwill improve this week when the market is fully openedaftertheLanternFestival[6February], says a Shanghaibased source. However, continuous new deliveries from mills are pushingupmarketinventories.Assuch,traders weredriventolowerpricestoacceleratesales, onetraderpointsout.
CSNbuysGermansectionsmill
Brazilian steelmaker, CSN, has bought German1.1mt/yEAFmeltshopandsections mill, Stahlwerke Thringen, from Spains Alfonso Gallardo Group for 482.5m ($640m). The financially troubled Spanish group had been in talks with CSN over a possiblesaleofThringenandseveralother plants last year before CSN pulled out. The acquisition makes CSN the first Brazilian steelmaker to own steelmaking and rolling operationsinGermany.
SBBSteelPriceTrackers
7daychange +1 +3 +3
LateNews
EditorsComment
Shippingovercapacitycouldsupplykeyscrapmarkets
The weak shipping industry is likely to negatively affect ship plate demand in the coming years (see page 7). However, other segments of the steel industry could see positiveeffects. The first sector to gain has been the shipbreaking industry, where the tonnage of scrappedvesselshasincreasedfrom6mdwt in2007toover40mdwtin2011.Asshipping overcapacity remains and ship deliveries outpacescrappingrates,shipbreakingislikely tocontinuetogrow. Steelmakers could benefit, especially in the Indian subcontinent, a major shipbreaking centre.Asecuresupplyofqualityscrapcould limittheirdependenceonvolatileimports. Meanwhile, some Chinese steelmakers are investinginshipbreakingtoreducetheeffect of rising domestic scrap prices and of the declining Fe content of domestic iron ore. Northern Chinas Anshan I&S plans to commission a shipbreaking yard this year, while Shougang has formed an alliance with TianjinTianmaShipbreaking. Increased use of scrap also has secondary benefits. The environmental costs of using scrap, in both EAFs and blast furnaces, are lower than for iron ore, for example. Furthermore, some ship scrap can be re rolled without remelting, reducing both environmentalimpactsandenergycosts. Steelmakersnearshipbreakingcentresshould makethemostoftheopportunitytoreduce the effect of growing environmental regulationandrawmaterialcostpressures. TomasGutierrez WorldSteelReview t.gutierrez@sbb.com
Contents
Email:
General:info@sbb.com Editorial:editorial@sbb.com Marke ng: marke ng@sbb.com Localteam: USA:usa@sbb.com Brazil:brazil@sbb.com Dubai:dubai@sbb.com Singapore: singapore@sbb.com
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IronandSteelmaking
Numbersoftheweek
Turkeyimported 21.1mtofscrapin2011, upfrom 19.2mtin2010.TheUSAwasthe largestsupplier,shipping 5.7mtofscrapto Turkey. Brazilianironoreexportsweredown46.5% momand 19.8%yoyinJanuary2012to 18.2mt. Korean slab exports were up 83% yoy in 2011 to 502,434 t, while imports were down34%tojustover3.5mt. US mill shipments fell 6.7% mom in November 2011 to 7.4m s.t of steel products.However, shipments were stillup 13.1%yoy. Italy imported almost 8.8m t of steel products from nonEU countries in 2011, a 12.8%yoyincrease. Chinese exports of seamless pipes were up 28%yoyin2011to4.9mt. Argentina produced steel at 84% capacity utilisationlastyear,bringingtotalproduction up9.2%yoyto5.6mt.
ThailandsSahaviriyaSteelIndustries(SSI)ispreparingtorestartits3.5mt/yblastfurnace andslabplantintheUKinthenextfewweeks. PakistansTuwairqiSteelMillsplanstocommissiona1.3mt/yDRIplantinQ22012. KoreasHyundaiSteelplanstoblowinanew4mt/yblastfurnaceatitsDangjinworksin AugustSeptember2013andcommissionanadditional2mt/yofHRCcapacityatthe plantbyJunenextyear. USsteelmaker,Nucor,planstocommissiona2.5mt/yDRIplantinthesouthernstateof Louisianainmid2013. SaharaMininghasbegunconstructionofa1mt/yintegratedsteelworksinMali.Ithopes tobeginproducingsome300,000t/yofrebarattheplantbyearly2014. MexicosAhmsaplanstocompletetherenovationofits60tBOFatMonclavainSpring 2013.
Flats
JapansJFESteelhasbeenforcedtostoptheplatemillatitsWestJapansteelworksfor technicalreasons.180,000tofoutputcouldbelost. KoreasHyundaiHyscohascommissionedasecondcontinuousgalvanizinglineatits Suncheonworks,bringingtheplantsgalvanizedsheetcapacityto770,000t/y. RollingoperationsatTataSteelsIJmuidensteelworksintheNetherlandsweredisrupted byapowerfailureon27January. ItalysBeltrameplanstobegincommercialoperationofits250,000t/yplatemillinVilla Constitucin,Argentina,inMay. EasternChinasJiangsuSunshinehasbeguncommercialproductiononitsnewlyinstalled 250,000t/ytinplateline. TaiwansYiehPhuiplanstoadd300,000t/yofHDGand200,000t/yofcolourcoating capacitytoitsYiehPhui(China)TechnomaterialplantintheeasternChineseprovinceof Jiangsu. Turkishsteelandpipemaker,Tosyali,hasformedajointventurewithJapanesesheet maker,ToyoKohan,tobuildafilmcoatedsheetplantinTurkey.
Longs
Stainless&Special
Germanstainlessbarproducer,Bllinghaus,planstoupgradeitsVieiradeLeiriarolling millinPortugaltohandlemoreferriticandmartensiticgrades.
Tubes&Pipes
Japanesetubemaker,MaruichiSteelTube,planstobuilda12,000t/yERWtubeplantin thecentralMexicanstateofAguascalientesbytheendoftheyear.
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RawMaterials
StocksWatch
Downstream
SBBVideo
Endusers
JapansJFEHoldingsandIHICorpplantomergetheirUnitedShipbuildingandIHIMarine Unitedshipyards.
Trade
SBBSteelNewsUpdateTurkey
CatchuponthelatestnewsfromtheTurkishmarket.
08February2012 Morevideos>>
Freight
TheSeaofAzovhasfrozen,hinderingCISscrapexportstoIran.
Finance&Management
Commoditytrader,Glencore,hasagreedtersforamergerwithSwissheadquartered mininggroup,Xstrata. USSteelhassoldits2.4mt/yintegratedsteelworksinSerbiatothegovernmentfor$1. Thegovernmentplanstoseekapartnertohelpoperatetheplant. Germanindustrialgroupshaveformedaneworganisationtojointlyacquireraw materials.FoundingmembersincludeGeorgsmarienhtte,StahlHoldingSaarand ThyssenKrupp. Brazilianlongsproducer,Votorantim,planstoinvestR$23m(US$13.2m)initsBarra Mansaunitin2012. IndiasJindalSteelandPowerisconsideringtakinga60%stakeintheGopalpurportinthe easternstateofOdisha(formerlyOrissa). Italianplantmaker,Danieli,hassignedaprotocolwiththegovernmentofthesouthern RussianregionofChelyabinsktosetupasteelworksmaintenancecentreintheregion. Braziliansteelmaker,CSN,hasraisedUS$200mthroughabondissue. UKbasedhotrolledcoilproducer,MirSteelUK,isbeingtakentocourtbyLichtenstein firm,LictorAnstalt,whichclaimsownershipoftheequipmentatthehotstripmill. IndiasMiglanifamily,coownersofcoldrollerandgalvanizerUttamGalva,planstobuya 24.5%stakeinstrugglingflatsproducer,LloydsSteelIndustries.
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Pricesstall,producersfearcoldsnap
NorthAmericaflats
US domestic spot HRC prices remained at around $730750/s.t ($805827/t) fob last week,inspiteofimportoffersaslowas$640/ s.tcfrGulfofMexico.
Europeflats
NorthwestEuropeandomes ccoilprices remained at lows of 525530/t ($686 692/t) exworks for March delivery last week. Meanwhile, southern European producers have booked March HRC deliveriesat520525/texworks.
CISflats&longs
CIS billet export prices were level last weekat$560565/tfobBlackSea.
NorthAmericalongs
US mill Hbeam list prices were at $870/s.t ($959/t) fob last weeks but some traders claimedtobeabletobuyatunder$800/s.t.
Europelongs
RebarpricesinnorthwestEuropeweredown around510/tlastweekto560570/t($736 749/t) DDP in Germany and 550570/t ex worksintheNetherlands.
Chinaflats&longs
ShanghaicoilspotofferswereupRMB1020/t lastweektoaroundRMB3,650/t($578/t)for HRCandRMB4,3084,333/tforCRC.Eastern ChinasShagangandNorthernChinasHegang have kept their spot rebar prices steady at RMB 3,744/t and RMB 3,444/t respectively, while Beijing spot rebar weakened slightly to RMB 3,4793,504/t. All prices exclude 17% VAT.
Risingrapidly
Pricesstable
Fallingrapidly
LatinAmericaflats&longs
BrazilianHRCpricesweresteadylastweekat R$1,8201,950/t (US$1,0401,115/t) exworks, withtaxes.
MiddleEastlongs
EgyptsEzzSteelhaskeptitsrebarprices forthismonthatEGP4,259/t($701/t)ex works. Saudi Arabian rebar prices remained xed at SAR 2,900/t ($773/t), withtaxes.
EastAsiaflats&longs
Koreandistributorswereofferingdomestically produced HRC last week at KRW 800,000 830,000/t($713733/t)butsomehadbegunto lift offer prices by KRW 10,00020,000/t. Japans Kyoei Steel has kept its February contract rebar prices steady at 65,000/t ($855/t).
N.B.:Africadatan/a *TSI=TheSteelIndex
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SteelMarketAnalysis
Globalsentimentweak,butslowpickupstillseemspossible
Lastweeksglobalmarketsentimentwasweak,particularlyinscrap,billetandmostfinished longproducts.Turkishscrapimportpricesfellby$12/tto$437/tcfraccordingtoTheSteel Index(TSI).Inflats,includingplate,themarketsweremorebuoyant,butthereremainissues overthesustainabilityoftherecentpricerises,giventhequestionableworldmacroeconomic trendsfor2012.TheIMFrecentlysaidChinasgrowthcouldfallsignificantlyiftheeuroarea experiencesasharprecession. Ironorepricespickedupalittle,reflectingsomerestockinginChinaafterthelunarnewyear holidays.Coking coal was softer as miners lowered prices to attract Chinese and Japanese buyers themselves facing sagging demand; any tighter supply due to the heavy rains in Australiacouldwellbeoffsetbylesspurchasing,claimedtraders. In this soft market, activity was limited. Strip mills continued to push for higher prices in EuropeandChina.ChinesedomesticHRCpricesfluctuatedonslimtransactionvolumesascoil inventoriescontinuedtoriseaftertheholidays.Butwithstocklevelsstillquitelowevenif increasing,traderssaidleadingproducersmaytrytoraisebothdomesticandexportpricesin thecomingweeks.InJapan,thestrongeryenishurtingexports. In northern Europe, producers were successful in raising HRC to around 530/t ($695/t), accordingtoTSI.Q1requirementshavemostlybeenfulfilled,withmaterialbookedforMarch delivery at a 30/t premium over that of early February. However, prices are not likely to increasefurtherinQ2,especiallyastheeuroisstrengtheningagainstthedollar. InNorthAmerica,thelate2011/early2012USstrippriceincreaseslostsomeoftheirupward momentum. It is unclear to what extent HRC import offers from China and Europe were being shunned due to the long lead timesarrivals would be in May/June. Nevertheless priceshavestayedstaticataround$720750/s.t($794827/t). RebarpricesacrossGermanyandtheBeneluxweakenedlastweekby510/tasbadweather halted some construction works, but also due to the downturn in scrap prices. In Taiwan, producerscutpricesduetotheweakerscrapmarket,whilstforTurkishrebarexportsapart fromthosetoSaudiArabiathemarketremainssoft.
Latesteconomic&businessnews
ChinasofficialmanufacturingPurchasing ManagersIndex(PMI)wasup0.2points to50.5inJanuary.Areadingover50 indicatesexpansion.However,the manufacturingPMIpublishedbyHSBC andMarkitwasuptojust48.8,indicating acontraction. TheUSeconomygrewatanannualised rateof2.8%inQ42011,slightlyfaster thanthe1.8%growthseeninQ3. However,around2%growthwasfrom anincreaseininventoriesandonly0.8% fromfinalsales. GermanysPMIrecovered2.6pointsin Januaryto51,indicatingareturnto growthforthecountrysmanufacturing sector.Meanwhile,industrialproducer pricesweredown0.2%mominboth theeurozoneandEU27inDecember. Excludingtheenergysector,priceswere down0.1%inbothareas.Pricesfor capitalgoodswerestable. Japaneseindustrialproductionwasup 4%mominDecember,drivenbya growthinautomobileproduction. However,industrialproductionacross Q4wasstilldown0.4%qoqasastrong Yenandtheeurozonedebtcrisislimited exportopportunities.
Otherforecasts
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Longs
Billet:CISbilletexportsweresteadyataround$560565/tfobBlackSealastweek,with onebookingheardat$585/tcfrTurkey.CISoffersfromtheBlackSeatoSoutheastAsia weremadeataround$640645/tcfr.However,Brazilian,Japanese,Koreanandeastern Russianmaterialwasofferedat$650/tcfr.Tradersexpectpricestofall. Rebar&rod:Turkishrebarexportssoftenedlastweektoaround$640650/tfob. Bookingswereheardat$665/tcfrSaudiArabiaonatheoreticalweightbasis.Southern Europeanrebarexportpricesalsosoftened1015/tlastweektoaround510520/t ($667680/t)fob.Spanishdomesticrebarproducerswereholdingpricessteadylastweek inthefaceofsoftdemandandweakeningscrapprices.Basepriceswerequotedat around290/t,equivalentto570/teffectivedelivered. Sections:NorthwestEuropeansectionspricesweresaidtobeatthetopofthemarket lastweekataround630640/t($827840/t)effectivedeliveredforcategoryone. Meanwhile,KoreansectionsmillsincreasedtheirofferpriceslastweekbyaroundKRW 40,000/ttoKRW980,0001m/t($866906/t)exworks.
Seaborneironorepricesturn upwards
155 150 145 140 135 130 7 14 21 28 5 12 19 26 2 9 16 23 30 6 Nov NovNov Nov Dec Dec Dec Dec Jan Jan Jan Jan Jan Feb 11 11 11 11 11 11 11 11 12 12 12 12 12 12 Indianironoreexports,63%Fefines,$/dmtcfrChina
Source:SBBPriceAnalyser
Flats
Coil:ChineseboronaddedHRCexportoffershaverisensome$30/tsincethestartofthe yeartoaround$635/tfob,withdealstakingplacelastweekat$620625/tfob.Chinese HRCexportstoKoreawerelastheardat$630640/tcfrandtraderswerenotexpectedto accepthigherofferprices.SoutheastAsianimportsofthingaugererollingHRCwere recentlybookedat$670680/tcfrIndonesiaandThailandfromKoreaandJapan,a$20 30/tincreasesincethestartoftheyear. Plate:Chinesecommoditygradeplateexportpricesremainedfirmlastweekat$615 620/tfob.USdomesticplatepricesweresteadylastweekataround$940960/s.t($1,036 1,058/t)exworksforA36.However,Nucorwastryingtopushthroughanadditional $40/s.tincreaseinitsheattreatedplateprices.
RawMaterials
Ironore:Seaborneironorepricesstrengthenedslightlylastweekinspiteofslowbuying.The SteelIndexsreferencepricefor62%Fefinesendedlastweekat$143.3/dmtcfrChina,upfrom $139.8/dmtaweekearlier. Scrap:ATurkishmillbookedamixedcargoofshredded,HMS1&290:10andbonusgrade scraplastweekat$438/tcfr,around$10/tbelowearlierbookings.Othermillsareholdingoff buyingastheyexpectpricestofallfurther.TheSteelIndexsreferencepriceforHMS1&280:20 wasdown$12/tlastweekto$437/tcfrTurkey.Taiwanesescrapimportpriceswerealsodown lastweektoaround$430435/tcfrforHMS1&280:20.JapaneseH2gradescrapexportprices weakenedtoaround30,50031,000/t($399405/t)fobalthoughatauctionlastweekH2 attractedawinningbidof30,800/tfas,equivalentto31,800/tfob.Meanwhile,TheSteel IndexsreferencepriceforUSdomesticshreddedscrapwasdown$23/l.tlastweekto$446/l.t ($398/t).
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Shipplatedemandmaynowbehitby2008crisis
Theglobalshipbuildingindustryhasseenaverydelayedreactiontothefinancialcrisisof 2008.Thanks toitslong lead times (attimesoverthreeyears),ordersplacedbeforethe crisisarestillbeingbuiltandasaresultdemandforshipplate,andothersteelproductsfor ship building, has remained firm. But the market now appears to have peaked and ship buildingisenteringaperiodofdecline,SBBInsightpointsout.
Shipdeliveriesbycountry/region (millioncgt)
60 50 40 30 20 10 0 2008 2009 2010 2011* 2012 2013 2014
Shipdeliveries,andthevalueofsteelconsumed,settodrop
Vesseldeliveriesarethoughttohavereachedanalltimepeakofaround160mdeadweight tonnes, a measure of carrying capacity, in 2011. However, on a compensated gross tonne basis (a measure that more accurately reflects the steel content of vessels), the market peakedin2010at52mcgt.Thenumberofvesselsdeliveredactuallyfell20%yoyin2011. Theslowdowninsteeldemandfromshipbuildingispartlyduetothekindofshipsbeingbuilt. Deliveriesofspecialvessels,suchasLNGcarriers,containershipsandcruiseships,fell35% lastyear,accordingtoClarksonResearchServices(CRS).Incomparison,deliveriesofdrybulk vessels, whichare lesssteel intensive, wereupalmost20% totop1,000 ships forthe first time. Shipyardorderbooksingeneralhavealsoshownastrongdeclinesincethe2008crisis.Orders placedgloballyin2011weredownaround50%yoyandthe115mcgtonorderbooksatthe endof2011wasaround55%ofthetonnageonorderin2008.Furthermore,theglobaldry andbulkcargoandcontainershippingmarketsarelikelytoseeexcesscapacityuntil2016, predicts Marine China News. This means order levels are likely to keep declining in the mediumterm. Butwhileordersforbulkvesselsfell70%lastyear,ordersforotherkindsofvesselssawstrong orders,notablyLNGcarriersandcontainerships.Althoughoverallvolumesarelikelytofall, thesteelintensityofshipsbeingbuiltcouldthereforebeslightlyhigher.
Korea Europe
Japan Others
Vesselordersplacedin20042011 (millioncgt)
KoreaandChinacompetefortopslot
Althoughshipbuildingoccursinmanycountries,theindustryisdominatedbyEastAsianship builders. China, South Korea and Japan together accounted for almost 95% of shipyard deliveriesbycgtin2011,accordingtoCRS.Theregionsdominancehasbeencementedby therapidriseofChinasshipbuildingindustry. ChinaovertookKoreaastheworldslargestshipbuilderin2010andhasdeliveredover1,000 vessels for the last two years in a row. Ten years ago Chinas output was below that of Europe,arelativelyminorplayerintermsofvolume. However,KoreasshipbuildingindustryisfaringbetterthantheChineseinthecurrentslow down. Koreas shipbuilders received orders for 13.6m cgt of ships last year, compared to Chinas9.2mcgt.Intermsofvalue,orderstoKoreanshipbuilderscameinat$48.2bnin2011, comparedtojust$19.2bntoChinasindustry.ThisisbecauseofthespecialisationofKorean shipbuilding. Only 8% of Korean orders were for bulk freight ships, compared to 63% for China.51%ofKoreanorderswereforcontainervessels,while17%wereforhighvalueLNG carriers.AnarticlebyMarineChinaNewsnotesthatthevalueofsomespecialistvessels,such asseismicsurveyvessels,isover$600m,whilea30,000dwtbulkcarriercostsunder$25m.
Source:ClarksonResearchServices
Shipbuildingsteeldemandislocallyfocussed
Anychangeinsteeldemandfromshipbuildingislikelytoaffectlocalsuppliersmost.Thisis particularlytrueasthewiderangeofsizesandgradesnecessaryinshipbuildingmakebulk importordersimpracticalforallbutthemostcommoditygradeshipplate.Asingleshipmay needover200differentspecificationsofsteeltocompleteandsoordersforindividualsizes tendtobesmall.Thisalsomeansthat,althoughstockistscanholdsmallamountsofgradeA commodityshipplate,mostshipmentsaremadedirectfrommilltoshipyard.
Thisreporthasbeensummarisedfrom the26JanuaryissueofSBBInsight.
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CompanyProle:BaosteelGroup
Whatisthecompany? Baosteel Group is Chinas third largest steelmaking group by volume and operates four steelmaking subsidiaries: Baoshan I&S, Ningbo I&S, Guangdong I&S and Xinjiang Bayi I&S, whichhaveoperationsinShanghaimunicipality,Jiangsu,Shandong,Zhejiang,andGuangdong provinces,andXinjiangUyghurAutonomousregion.BaoshanI&S,islistedontheShanghai Stock Exchange (SHA:600019), as is Ba Yi I&S (SHA: 600581). The group company is 100% ownedbythenationalStateAssetsSupervisionandAdministrationCommission. WhatdoesBaosteelproduce? Baosteelgroupproducedaround43.3mtofcrudesteelin2011,downslightlyfrom44.4mtin 2010duetotheclosureofcapacityinGuangzhou.Outputwasupatallotherfacilities.The companysBaoshanplantinShanghaiistheworldsthirdlargeststeelworkswithacrudesteel capacityof16.9mt/y.ItalsohasotherplantsinShanghai,over5mt/yofcrudesteelcapacity inbothXinjiangandZhejiang,3.9mt/yinGuangdongand1.7mt/yinJiangsu.Thecompany producesafullrangeofflatslongsandtubesbutprimarilyproducesflatproductsincluding HRC,CRC,HDGandautosheet.Ithastargetedinvestmentsathighervalueaddedproducts suchastinplateandelectricalsteels. Whatisthecompanysfinancialposition? In2011thegroupsmainlistedsubsidiary,BaoshanI&S,reportednetprofitsdown43%yoy toRMB7.3bn($1.2bn),whilerevenueswereup10.2%toRMB223.1bn. Whyisthecompanyinteresting? Baosteelplanstobuildanew10mt/ysteelworksatZhanjianginGuangdongprovince.A firstphase,possiblyofaround5mt/y,wasapprovedbytheNationalDevelopmentand ReformCommission(NDRC)inlate2011.InordertosecuretheapprovaloftheNDRC Baosteelhasagreedtoshutdownaround23mt/yofoutdatedsteelmakingcapacityat GuangzhouIron&Steel,whichhassincebeensoldtoGuangzhouSASACandisnolonger partofBaosteelGroup.Baosteelplanstocommissiontwonewstateoftheart5,700cu mblastfurnacesatZhanjiang,whichwillbethesecondlargestfurnacesintheworld behindShagangs5,800cumblastfurnaceinJiangsuprovince.
ABriefHistory
2011Baosteelcommissionsitssecond1.5m t/y Corex plant in Shanghai and plans to movethefirsttoXinjiang
2007BaosteelbuysXinjiangsBayiI&S
2000BashanI&SislistedontheShanghai StockExchange
1998 Shanghai consolidates its main steel companies, Bashan I&S, Shanghai Metallurgical Holding Group and Shanghai MeishanGrouptoformBaosteelGroup
1977BaoshanI&SisformedinShanghai
BaosteelsLuojinPortsteelworksinShanghaiishometoChinasonlytwoCorexiron makingunits,eachwith1.5mt/yofironmakingcapacity.Baosteelhopedtheunitswould lowercosts,buttheunitshavebeenoperatingatalosssincetheywerecommissioned. Justmonthsaftercommissioningthesecondunit,BaosteelannouncedinAugust2011 thatitwasplanningtorelocatethefirstunittoitssubsidiaryinXinjiang.Thegovernment hasbeenstrictlyregulatingallcapacityexpansions.However,itisencouragingmillsto buildfacilitieswithcuttingedgetechnology,suchasCorex. InordertoimproveitsprofitabilityBaosteelsmainlistedarm,BaoshanI&S,haspledged tosellitsspecialandstainlesssteelmakingoperationstoitsparentcompany,whilenon corebusinessessuchaspropertydevelopmentandlogisticsservicescouldsupportits balancesheet,analystssay.
www.baosteel.com
SomeofBaosteelGroupssteelsubsidiaries: BaoshanI&S NantongBaosteelI&S NingboI&S TheZhanjiangproject BayiI&S YantaiBaosteelPipe
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