[SMM Analysis] Baowu Taiyuan Iron and Steel Co., Ltd. Xinhai signed a cooperation agreement to integrate resources advantages of stainless steel industry to open up important changes

SMM11 4: it is reported that on the morning of November 3, Baowu Iron and Steel Group, Taiyuan Iron and Steel Group and Shandong Xinhai Science and Technology Co., Ltd. signed a strategic cooperation framework agreement in Jinan. Gong Zheng, deputy secretary of the provincial party committee and governor, Chen Derong, party committee secretary and chairman of Baowu Iron and Steel Group, and Gao Xiangming, party committee secretary and chairman of Taiyuan Iron and Steel Group, attended the signing ceremony. According to the agreement, Baowu Iron and Steel Group, Taiyuan Iron and Steel Group and Shandong Xinhai will give full play to their respective advantages and promote cooperation in the fields of stainless steel raw materials and manufacturing, so as to complement each other's advantages and achieve win-win cooperation.

Taiyuan Iron and Steel Co., Ltd., with an annual capacity of 4.5 million tons, is mainly composed of 300 series and 400 series.

According to data, Taiyuan Iron and Steel (Group) Co., Ltd. is Taiyuan Iron and Steel (Group) Co., Ltd., after the reorganization of stainless steel production and operation business and other operating assets in June 1998, Taiyuan Iron and Steel Co., Ltd., Taiyuan stainless Steel Co., Ltd., Taiyuan Iron and Steel (Group) Co., Ltd., Taiyuan Iron and Steel Co., Ltd. In June 2006, Taiyuan Iron and Steel Co., Ltd. completed the acquisition of the main iron and steel assets of Taiyuan Iron and Steel Group, with a complete iron and steel production process and related supporting facilities. The company's main products are stainless steel, cold-rolled silicon steel, carbon steel hot rolled coil, train axle steel, alloy die steel, military steel and so on. Automobile exhaust system steel, civil ultra-pure ferrite, railway freight car steel, tank steel, steel wheel steel, axle steel, non-magnetic steel, pure iron and other products share the first in China.

The company insists on winning with the new, and the key products are widely used in key areas and emerging industries, such as petroleum, chemical industry, shipbuilding, container, railway, automobile, urban light rail, large power station, "Shenzhou" series spaceship and so on. Soft stainless steel precision foil (hand torn steel), pen tip steel, high manganese high nitrogen stainless steel, the third generation nuclear power extruded stainless steel C-section steel and other new products play an important role in the localization of key materials in our country. The annual capacity of stainless steel in Taiyuan Iron and Steel Co., Ltd. is 4.5 million tons, mainly 300 series and 400 series.

Shandong Xinhai: annual production capacity of 2.088 million physical tons of high nickel pig iron

Shandong Xinhai Science and Technology Co., Ltd. is located in Junan Economic Development Zone, registered in 2007, registered capital of 180 million yuan. The company's main business scope: nickel alloy production and sales and related technology development, utilization, transfer; self-produced solid waste sales.

In response to the call of the state to encourage Chinese enterprises to develop overseas nickel resources, the company makes use of the abundant electric power resources in Junan Economic Development Zone, imports rich laterite nickel ore resources from abroad, smelts and produces high-quality nickel alloys, and develops a new process stainless steel industry chain. Shandong Xinhai science and technology annual production capacity of 2.088 million physical tons of high nickel pig iron, had been planned to produce 3 million tons of stainless steel, due to the lack of replacement capacity, production plans have been delayed.

Baowu, China: increased production capacity to 2 million tons in 2019, mainly 200series and 300series

China Baowu Iron and Steel Group Co., Ltd. (China Baowu) was jointly reorganized by the former Baosteel Group Co., Ltd. and Wuhan Iron and Steel (Group) Co., Ltd., and was launched on December 1, 2016. China's Baowu has a registered capital of 52.79 billion yuan, assets of 711.81 billion yuan, and a production capacity of 70 million tons, ranking first in China and second in the world. It is a pilot enterprise of a state-owned capital investment company. In 2018, China's Baowu continued to maintain its leading position in the industry, with a steel output of 67.25 million tons, a total operating income of 438.62 billion yuan and a total profit of 33.837 billion yuan, ranking 149th in the Fortune 500.

Baosteel Desheng stainless Steel Co., Ltd. (referred to as "Baosteel Desheng") was established in March 2011. Its predecessor was Fujian Desheng Ni Co., Ltd., which was owned by Baosteel stainless Steel Co., Ltd in 2011. Baosteel stainless Steel Co., Ltd. ("Baosteel Desheng" for short) was established in March 2011. It was directly managed by China Baowu Group in October 2017. As an honest employment enterprise in Fuzhou, the company ranked among the top 50 enterprises in Fujian for two consecutive years in 2012 and 2013.In 2013, it was appraised as Fuzhou municipal enterprise technology center, and in 2015, it was appraised as Fuzhou municipal organ civilization unit. Fuzhou Federation of Trade unions "Advanced Workers' Home" won Fuzhou intellectual property demonstration enterprise in 2016, Fuzhou honest employment enterprise and Fujian science and technology enterprise in 2017. In 2018, he was awarded Fuzhou Municipal Civilization Unit from 2015 to 2017. In 2019, Baosteel Desheng put into production one after another, adding 800000 tons of stainless steel production capacity to 2 million tons, mainly 200series and 300series.

SMM believes that the growth rate of stainless steel production capacity in China is slowing down, and the future development pattern will take nickel pig iron, ferrochromium and stainless steel integrated production capacity as the main industry participants. This time, the three enterprises work together strongly, integrate resource advantages, conform to the development trend of the industry, and is an important change in the stainless steel industry.