Home / Metal News / Steel News Roundup

Steel News Roundup

iconNov 23, 2020 12:00
Five government departments of Liaoning Province have issued the "Liaoning Province Green Mine Construction Implementation Plan", which encourages and supports mining companies to develop green mining by providing land use, fiscal and taxation, and financial support.

SHANGHAI, Nov 23 (SMM) — This is a roundup of news in the steel industry for last week.

51 iron ore mines included in the first batch of Liaoning “green” mines

Five government departments of Liaoning Province have issued the "Liaoning Province Green Mine Construction Implementation Plan", which encourages and supports mining companies to develop green mining by providing land use, fiscal and taxation, and financial support.

“Green” mines that meet requirements and are recognized as high-tech enterprises can enjoy a maximum 15% reduction in corporate income tax. These mines must fully meet the requirements of green mine construction, while existing mines must accelerate upgrading and transformation.

In addition, green mining companies can also obtain other preferential policies such as green credit. Among the 333 green mines announced by Liaoning, 51 iron ore producers are included.

Tangshan shut 5 steel plants and reduced 13.6 million mt of iron making capacity

As of November 14, Tangshan Jianlong Steel has suspended production of blast furnaces and rolling mill processes, with monthly decrease of 90,000-100,000 mt strip steel (including 60,000mt self-provided cold-rolled coils feed preparation and 30,000-40,000 mt sold hot strip steel). The cold-rolled equipment will remain in operation and annual supply of hot-rolled coils are expected to be at 600,000 mt.

On November 17, the blast furnace equipment of Tianjin Rongcheng Group Tangshan Special Steel has ceased production. The company has a 1080 m³ blast furnace and a 100 mt converter, with an iron making capacity of 1.04 million mt and a steel making capacity of 1.15 million mt. It mainly produces high-quality round and square steel billets.

After the shutdown, it will be merged with Tianzhu Iron and Steel to form Hebei Tiancheng Heavy Industry Group and relocate to the Tangshan Seaport Economic Development Zone. Tangshan Special Steel’s steel making capacity was sold to two steel mills.

According to SMM statistics, Tangshan has shut down five steel plants till date, involving 13.6 million mt of iron making capacity and 14 million mt of steelmaking capacity. Some of the mills will relocate to other regions, while some will be replaced by new capacity that will be put into production later this year or next year.

On the other hand, the amount of newly commissioned iron making capacity in Tangshan stood at just 7.35 million mt. The shutdowns of steel mills in Tangshan occurred mostly in September and thereafter, leading to lower output of pig iron and crude steel.

Hebei Wenfeng Group's self-produced iron ore in Chile arrived at Caofeidian

China has received the first shipment of iron ore producted by Hebei Wenfeng’s mine in Chile, to be delivered to Caofeidian Port.

Wenfeng Group has established Minera SanFierro Chile Limitada in 2009, which is the only Chinese iron ore developer in Chile till date. The company has three mining areas, all of which are located in Chile's Atacama Region, which mainly produce magnetite as well as a small amount of hematite.

Annual output of iron ore is estimated to be at 10 million mt for the three mining areas are fully operational, with current annual output at 1.5 million mt. The project saw a delayed  commission in 2020 due to the sluggish iron ore market.

In 2019, China imported 6.9 million mt of iron ore from Chile, of which high-grade concentrates accounted for 85%. The iron ore produced by Minera SanFierro Chile Limitada has a grade of over 65%, but contains a relatively high level of sulphur. Minera SanFierro Chile Limitada will meet needs of its parent company in China while  providing high-quality iron ore fines to other companies in China to further enhance the position of Chinese steel companies in the international market.

According to SMM statistics, Chinese companies are entitled to more than 800 million mt of iron ore overseas through investment, but less than 25% of them were shipped back to China.

Hegang Laoting’s #2 blast furnace successfully put into production

Hegang Laoting’s #2 blast furnace (capacity= 2922 m3) was successfully put into operation on November. The steelmaker has three blast furnaces, with the annually designed production capacity of 7.32 million mt. The #1 furnace has been smoothly commissioned since its first ignition in September, and its daily output has reached the planned amount even in the trial stage. The #3 furnace is planned to be put into production before the end of December.

6.87 million shanty towns transformed, completing 94.6% of the Annual Plan

New transformation of urban residential areas totalled 37,000 from January to October in China. Around 6.87 million shanty towns were rebuilt, which accounted for 94.6% of the Annual Plan.

For more information on the iron ore and steel sectors, please subscribe to our China Iron Ore Weekly and China Steel Briefing.

Iron ore

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars