SHANGHAI, Jan 4 (SMM) — This is a roundup of news in the steel industry for last week.
Eight steel enterprises in China completed ultra-low emission transformation
As of December 30, 8 steel companies in China, including Shougang Qiangang, Taiyuan Iron & Steel Group (TISCO), Shougang Jingtang, Xingtai Delong, SD Steel Rizhao, Xinxing Ductile Iron Pipes, Zongheng Fengnan, and Meishan Iron & Steel, have completed ultra-low emission transformations and relevant evaluation and monitoring.
Since the announcement of the "Opinions on Promoting the Implementation of Ultra-Low Emissions in the Iron and Steel Industry” at the end-April 2019, upgrading and ultra-low emission transformation in the iron and steel industry has been proceeding. As of November 27, 2020, China has completed 620 million mt of crude steel production capacity at 229 companies or are implementing ultra-low emission transformations.
Newly discovered iron ore resources amounted to 2.82 billion mt in Shandong
Over the past ten years, Shandong has discovered 4 large iron ore deposits and 35 medium and small iron ore deposits. The newly discovered iron ore resources amounted to approximately 2.82 billion mt, forming Zibo, Laiwu, Cangyi, Dongping-Wenshang resource base.
Laiwu Zhangjiawa iron ore mine has become China's largest skarn-type Fe-rich iron ore deposit. A Fe-rich iron ore deposit with a thickness of 97.45 meters and an average grade of Fe 55.95% has been discovered in the Qihe-Yucheng exploration area.
Wuzhou Yongda Iron and Steel Group's EAF-100t project put into production
It is reported that on December 28, 2020, Wuzhou Yongda Iron and Steel Group's EAF-100t project was successfully completed and put into production. The EAF-100t quantum electric arc furnace project was constructed for the capacity replacement and technological transformation on production equipment. The total investment in the project reached 800 million yuan. It can produce 1 million mt of steel annually, and the annual output value exceeds 4 billion yuan.
TISCO to expand annual production of crude steel and stainless steel to 25 million mt and 15 million mt by end of the 14th Five-Year Plan period
TISCO plans to produce 15.25 million mt of crude steel and 6.5 million mt of stainless steel in 2021, and achieve operating income of 108 billion yuan and profit of 4.27 billion yuan. By the end of the "14th Five-Year Plan” period, TISCO plans to achieve annual crude steel and stainless steel production of 25 million mt and 15 million mt, and achieve revenue of 200 billion yuan and profit of at least 10 billion yuan. Its self-sufficiency rate of nickel and chromium resources will exceed 30% and 50% respectively. TISCO strives to become the stainless steel industry integrated operation flagship platform company of China's Baowu Group and the world's most competitive stainless steel industry chain enterprise group within 5 years.
On December 23, Taigang Group completed the registration of the industrial and commercial change of equity, making China Baowu its controlling shareholder. In order to further promote the integration, China Baowu has decided to put Baosteel Desheng and Ningbo Baoxin under the management of TISCO.
Total investment of 233 major projects in Guizhou Province reached 166 billion yuan
The construction of 233 major industrial investment projects, including Hengli (Guiyang) Intelligent New Material Industrial Park and Anji Precision Casting Aviation Industrial Park in Guizhou, have been started recently, with a total investment of 166 billion yuan.
Jianlong and Shagang seek different directions of expansions
According to government planning, the top ten steel companies (groups) will account for no less than 60% of China's crude steel output by 2025, and three to five super-large steel enterprise groups with strong global competitiveness will be formed. The key to integration is private steel companies as they account for 63% of the country's crude steel output. Among private steel companies, Shagang Group and Beijing Jianlong Heavy Industry Group Co., Ltd. have the highest output.
Shagang Group's five major steel production bases are located in Suzhou, Huai'an, Dalian, Fushun, and Anyang. Its strategic centre is in Jiangsu, and the expansion direction is Henan. In 2020, Shagang Group actively participated in the integration and reorganisation of the iron and steel industry in Henan province, including the integration and reorganisation of some private steel enterprises in Anyang city, which have a total ironmaking capacity of 4.94 million mt and steelmaking capacity of 5.5 million mt.
Jianlong Group, whose strategic centre is north-east China, has expanded towards Hebei, Inner Mongolia, Ningxia and Shanxi. It is currently focusing on developing Shanxi and Ningxia. market. Jianlong Group aims to control and own 50 million mt of steel capacity, on top of 50 million mt of capacity through equity holding by 2025.
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