-archive- 200713 2006 2005 2004 0409 0408 0407 0404 0403 0402 0312 2002 2003

Auto steel: the lighter the more promising(2009/9/15)

Experts at the 2009 International Conference for Auto Steel and Its Applications in Dalian have arrived at a consensus about the importance of greenfield, energy-saving auto steel to its producers. Since carbon dioxide (CO2) emissions from the vehicle-dominated transportation sector account for about one quarter of the world’s total CO2 emissions, outcries for tightening controls on car emissions have been mounting. Therefore, steelmakers are increasingly required to produce materials of high quality to meet this trend. As steel comprises 70 percent of the car structures, it is imperative for the industry to focus on the production of lighter, higher strength, precision and easier-cutting steel. Attempts have been made by various producers around the world to concentrate on light metal, high-strength compound materials as an alternative to the traditional steel-frame parts.

Steel export growth continues in August(2009/9/14)

Customs data showed China exported 2.08 million tons of steel products in August, up 270,000 tons from July, down 72.9 percent year-on-year; and exported 40,000 tons of coke, down 97.16 percent from a year earlier. The country imported 1.59 million tons of steel products in August, down 150,000 tons from the previous months and up 19.55 percent from the same period last year; 350,000 tons of billet, down 220,000 tons month-on-month; and 49.68 million tons of iron ore, up 32.83 percent from a year earlier. In the first eight months, China exported 13.24 million tons of steel products, down 68.4 percent; and 320,000 tons of coke, down 96.7 percent while importing 11.47 million tons of steel products, up 3.7 percent; and 404.90 million tons of iron ore, up 32 percent.

China opposes US duties on OCTG imports(2009/9/14)

China's Ministry of Commerce (MOC) expressed a strong protest against a United States preliminary decision to impose duties ranging from 10.9 percent to 30.6 percent on OCTG imports from China. A spokesman of the MOC said that the way the U.S. defined as a kind of state subsidies no matter OCTG producers bought round bar from state-owned or private suppliers was wrong, which resulted in higher subsidy rates and would "greatly hurt" the interests of Chinese enterprises. He stressed that the United States should stop new trade protectionism actions before the end of 2010 and shun trade remedies as the government promised in the G20 summit in London.

August steel output hits all-time high(2009/9/11)

Despite a 1,000 yuan per ton plunge in steel prices, China produced 51.65 million tons of crude steel in August with a daily output of 1.67 million tons, all breaking the record highs, according to the latest data from CISA. The figure equated to 608 million tons at an annual rate, far in excess of the 460 million tons first targeted early this year. Minister of Industry and Information Technology reckoned China’s steel capacity has surpassed 660 million tons, not mention to roughly 58 million tons of new capacity under construction, whereas apparent consumption would be short of 500 million tons this year. The price dives are supposed to gradually throw its weight on the market in September.

71 key mills profit 10.6 bln in July(2009/9/11)

CISA’s data showed China’s 71 large and medium-sized mills obtained a profit of 10.6 billion yuan in July, four of which suffered a loss with a total deficit of 215 million yuan. They produced 38.67 million tons of crude steel and 36.53 million tons of steel products in the month. The steel sector in 22 provinces and cities had a profit of 29.8 billion yuan in the first seven months. Small steelmakers uncovered by the CISA’s July data were supposed to produce 12.01 million tons of steel, 24.38 million tons of steel products, and make a profit of 7.5 to 10 billion yuan.

Falling steel prices extend to iron ore, coke(2009/9/9)

Domestic steel prices have fallen for four weeks running, though the pace is currently slowing. As a result, the price of iron ore and coke has also dropped. Indian fines grading 63.5 percent are being offered at about $82 per ton, down $6 per ton, or 6.8 percent, from last week. It is commonly thought that the drop below the $80 per ton mark is just a matter of time. The September monitoring price of coke in Shanxi was suggested by the Shanxi Coking Industry Association at 1,780 yuan per ton (FOT, duty unpaid), 100 yuan per ton lower than the previous month. The association also called on a strengthened output limit, say, at 60 to 70 percent of their normal capacity among local producers.

Iron ore imports fall in August(2009/9/4)

Spot iron ore vessel bookings to China in August by the world's two biggest exporters, Australia and Brazil, fell to a 9-month low, indicating strong demand from the world's top steel maker may be slowing as steel prices slump. Separate data showed on Tuesday that Brazil's iron ore exports, most of which goes to China, also dropped 8.4 percent to 23.3 million tonnes in August from their 2009 peak level in July, underscoring that China's iron ore buying spree may be losing some steam.

Chinese major mills see H1 profits plummeting(2009/9/2)

More than half of steelmakers releasing their half-year results suffered a loss with Ansteel, Laiwu Steel, Valin Steel, Liuzhou Steel and Tisco, to name a few, seen in the list. Ansteel lost 1.56 billion yuan, the worst among its peers, in the first half. Baosteel and Wisco reported a net profit of 669 million yuan and 505 million yuan respectively, down about 90 percent year-on-year. On the other hand, the steel sector in Hebei Province dominated by smaller mills with capacity below three million tons each enjoyed a nearly 9 percent growth in profitability in the first five months of this year, according the CISA.

Construction steel prices plunge in Beijing(2009/8/28)

Construction steel in the Beijing market has suffered the worst as the steel prices began to plummet from mid-August, with the price of rebar falling as much as 1,200 yuan per ton on average. On August 26, the prevailing offer of second-grade rebar dropped to 3,800 yuan per ton, compared to the peak level of 5,000 yuan per ton; and that of wire rod fell by 30 yuan per ton to 3,600 yuan per ton. In the Shanghai market, second grade rebar was offered at 3,600 yuan per ton, down 60 yuan per ton. High inventory and changes in market sentiments are said to be responsible for the apparent corrections.

Mills’ profitability hits 4-year low(2009/8/27)

 According to a report from Unbank, gross profit margin of China’s steel industry dropped by 4.53 percentage points to 5.28 percent in the first half of this year, the lowest since 2004. During the period, gross profit margin, profit margin and return on assets of large-sized steelmakers were 7.35 percent, 3.39 percent and 2.47 percent respectively; those of medium-sized mills were 3.67 percent, minus 0.11 percent and minus 0.06 percent; and those of small mills were 6.72 percent, 0.99 percent and 0.77 percent. Gross profits of large, medium and small producers were down 99.7 percent, 102.84 percent and 70.14 percent year-on-year respectively. Analysts say constrained by soaring costs and protracted stagnation in downstream sectors, the steel industry is experiencing an era of thin margin.

China steel prices plunge after July rises(2009/8/25)

 BEIJING, Aug. 22 (Xinhua) -- China's steel prices went through a crazy rise and fall within 20 days, with the biggest fall at 20 percent, according to figures from the country's leading industry information provider.
Steel prices plunged from this year's record high early this month, a culmination of price rises since late July when big steel plants took to raise prices.
Prices of deformed steel bars dropped from the highest 5,000 yuan (735 U.S. dollars) per tonne to 4,200 yuan, a decrease of 16 percent, and steel wires saw the highest decrease of 20 percent, from 4,850 yuan per tonne to 3,900 yuan as of Wednesday, according to the industry information provider MySteel.com.
Xu Xiangchun, analyst of Mysteel, said price hike led by major steel plants was the last straw to weigh down on the steel market and triggered the price slump.
Traders who sold stockpiles to cash in on earlier price rises also helped drive the prices lower, Yao Hongchao, president of a Henan steel trader told the China Securities Journal.
Other traders suffered huge losses as prices slumped, while steel producers had significantly reduced stockpiles when prices were high, said Zhang Ping, an analyst with Umetal, another industry information provider.
Steel price adjustment might continue for some time, said Zhang, as stockpiles continued to rise on lower trade and maintained supply.
He said price change was a technical adjustment at first, but it could be compounded by a change in macro policies, such as a slight adjustment in bank credit, and a bearish run of the stock market that may impact investor confidence.
Xu said signs showed steel prices had plunged too much and might overdive.
Zhang expected prices of deformed steel bars could stabilize at 3,700 yuan per tonne before overdiving.

Prices won’t rise unless production cuts(2009/8/24)

Domestic steel prices began to plummet from last week after 17 weeks of continuous rally. CISA general secretary Shan Shanghua attributed the sharp fall to overcapacity, claiming the steel prices would continue to dip if mills fail to slash their output for the rest of the year. Some of experts argued, however, the condition has something to do with the current off-season during July and August. Others believed it is simply a routine response to the unusual climbs in the second quarter due to de-stocking associated with the government four trillion yuan investment package, and expected a further 20 to 30 percent rise in prices for the rest of the year.

US electric steel targeted by China’s countervailing investigation(2009/8/21)

China’s Ministry of Commerce has decided to include ten more types of grain oriented (GO) electric steel imported from the United States into its countervailing investigation originally launched on June 1, 2009 after it held talks with US counterpart on the matter on August 13. The latest move was in the response to the requests filed on July 20, 2009 by Baosteel and Wisco on behalf of domestic GO electric steel producers on adding the number of GO electric steel made in the US to be investigated against the countervailing charges.

Iron ore deal not a big deal(2009/8/19)

BEIJING, Aug. 18 -- Chinese negotiators have backed down from a demand for a 45 percent cut in iron ore prices, settling for a 35 percent reduction from Australia's Fortescue Metals Group Ltd (FMG) and asking for the same deal with SA Vale, Billiton BHP Ltd and Rio Tinto Group.
Analysts said the cut was a face-saving gesture after seven months of stalled talks involving miners and the China Iron and Steel Association.
"The FMG agreement won't end the long talks between China and the largest suppliers," said Hu Kai, a Shanghai-based analyst with Umetal Research Institute. "Fortescue is too small to be representative in setting benchmark prices."
FMG's annual production stands at only 50 million tons per year, while China's iron ore imports require more than 50 million tons per month, said Fan Haibo, a senior analyst from Xinda Securities.
"Such a small fraction cannot shelter China from the dominant position enjoyed by the three global giant miners," Fan said.
Fortescue agreed to supply iron ore for all Chinese clients at a unified price, "whether State-owned or private steel companies, large or small", Shan Shanghua, the secretary-general of the iron and steel association, said yesterday during a news conference.
Free on board fine ores will be sold at 94 cents per dry ton unit for the rest of 2009, down 35 percent from the price last year, while lump ores will be sold at 100 cents per dry ton unit, down 50.4 percent, he said.
A dry metric ton unit, or dry ton, has the same mass value, but the material has been dried to decrease the moisture level.
Shan said China will apply this "China mechanism" with Billiton, Vale and Rio, using the FMG prices as a reference point.
Xu Xiangchun, a director of Mysteel Research Institute, questioned the value of the deal.
"Although it sounds like a breakthrough in the protracted talks, will the new mechanism be accepted by other miners?" he wondered.
"Actually, it's unlikely that the three global miners will offer China a better price after the 33 percent cut has been accepted by other countries such as Japan and South Korea," he said.
(Source: China Daily)

China settles 2009 benchmark iron ore prices with FMG(2009/8/18)

Baosteel, on behalf of Chinese steelmakers concluded 2009 benchmark iron ore prices with Australia’s FMG through serious and adequate consultations on the basis of mutual benefits and cooperation. Under agreement, the new reference prices per dry metric ton Fe unit are $0.94 for fines and $1.00 for lump with a contract period between July 1, 2009 and December 31. Chinese steelmakers should observe the new prices in earnest and do their jobs well in line with the Adjustment and Revitalization Program on the Steel Industry.

No new expansion approvals in three years(2009/8/17)

No new steel expansion should be encouraged for the next three years in a bid to curb excessive capacity, minister of Industry and Information Technology Li Yizhong said in an interview. China has a steel capacity of 660 million tons, excluding 58 million tons of capacity under construction while actual demand is just 470 million tons. Steel overcapacity is threatening to bring the industry to a “dead end.” Concreted measures to bail the industry out in a guideline which is drafting include: continue to eliminate outdated capacity according to the 11th Five-year Plan that has confirmed 100 million tons of pig iron and 50 million tons of steel as outdated capacity to be scraped by 2010; further promote mergers and consolidation in the industry; and discourage any new expansion work for the next three years.

Official: China should have more say in global iron ore trade(2009/8/14)

BEIJING, Aug. 13 (Xinhua) -- As the world's largest iron ore buyer, China should have more say in the global iron ore trade, Industry and Information Technology Minister Li Yizhong said Thursday.
"Spot prices of iron ore are increasing sharply on the global market and we hope to see an appropriate relationship between spot prices and long-term contract prices," Li said at a press conference.
He said he hoped the world's major iron ore suppliers would consider both their own long-term interests and their long-term cooperation with China's steel industry.
According to customs statistics, China imported 355.3 million tonnes of iron ore in the first seven months this year, an increase of 31.8 percent from a year earlier.

Excessive iron ore imports emerge in H1(2009/8/14)

China saw a year-on-year increase of surprising 31 percent in iron ore imports in the first seven months of this year, caused by higher steel prices at home, mills and importers’ concern over the uncertainty of future market and, undoubtedly an uncontrolled buying by some importers, said a source with the Ministry of Commerce.

China July iron ore imports at new record(2009/8/13)

China imported 58.08 million tons of iron ore in July, the highest monthly volume on record and up 47 percent from the same period last year, according to the country's customs authority. 355.3 million tons of iron ore were imported into China in the first seven months. Crude steel output stood at 50.68 million tons in July, equivalent to nearly 600 million tons yearly, far in excess of the 460 million tons originally scheduled early this year. July figure also marked the third consecutive month breaking the output records. As of August 7, iron ore stocks at ports had reached 73.29 million tons, approaching the recorded 75.5 million tons seen last September. Indian fines grading 63.5 percent are being traded at over $110 per ton, making possible a massive restoration of output in Chinese producers.

Steel consumption from two sectors to hit 28 million tons(2009/8/12)

China’s auto and shipbuilding industries may consume 15 million tons and 13 million tons of steel respectively this year, predicated by experts at the 2nd Chinese Steel Distributors Summit Forum held on August 8 in Zhengzhou, Henan. Sales of vehicles are expected to top 11 million units in 2009, compared with 9.38 million units last year, said Shi Jianhua, vice general secretary of China Association of Automobile Manufacturers. The proportion of sheet to structural steel to be consumed this year would be three to one. Section, medium plate, sheet, strip, premium steel and pipe are among the most used varieties in the auto sector. Among 13 million tons of steel to be consumed by shipbuilders, ship plate will take 11.7 million tons, section and ball flat steel will hold 1.2 million tons and pipe will require 400,000 tons, according to Tan Naifen, vice president of China Association of the National Shipbuilding Industry.

Spot iron ore prices hit 10-month high(2009/8/12)

The delivered prices of spot iron ore have raised to a 10-month high of $110 per ton, much higher than the benchmark prices reached between Japanese and South Korea’s mills and ore suppliers. Indian fines grading 63.5 percent are currently offered at $110 to 112 per ton, nearly 80 percent higher than those in mid-April. Mills worrying about their normal production have expressed their discontent over CISA’s tough but increasingly barren stance, claiming it is in a large part fighting for nothing but its self-esteem. Some mills are said to have accepted a 33 percent markdown in private with suppliers.

Iron ore-forming belt found in Qian’an(2009/8/11)

The Bureau of Hebei Geology and Mineral Resources Exploration announced it discovered an iron ore-forming belt measuring nearly 3 kilometers in length and some 20 meters in thickness 10 m to 50 m beneath the area in Qian’an, Hebei. The deposit has a potential iron ore reserve of more than 200 million tons with a Fe content of over 30 percent on average.

China may produce 500 million tons of steel this year(2009/8/6)

The CISA pointed out in a report China is expected to produce more than 500 million tons of crude steel. The prices of steel in the latter half will continue to rebound, but perhaps in a wig-wag way. The problem of oversupply remains distinct with the lagging export situation unable to be reversed any time soon. The excessive imports of iron ore have distorted the normal supply and demand position, thus seriously disturbing the ongoing iron ore price talks.

July iron ore imports hit year-high(2009/8/6)

China imported 56.5 million tons of iron ore in July - the highest monthly level this year, up 35 percent year-on-year. Dealers are said to be the major contributor to the surging imports. Of 297 million tons of iron ore imported into China in the first half, 166 million tons went to steelmakers, up 9.65 percent, while 131 million tons were bought by dealers, up 903.43 percent. With the revival of the steel market, real demand will increasingly become a possible factor behind the booming iron ore imports.

China steel makers striving for unified price(2009/8/5)

BEIJING, Aug.3-- China's steel industry association said on Friday that it plans this year to unify the spot and long-contract prices for the country's iron ore imports.
It will also set a ceiling for charges levied by import trading firms, as part of an effort to regulate the market.
The proposal was the top item of discussion at the steel industry body's two-day semiannual meeting, said Luo Bingsheng, deputy chairman of the China Iron and Steel Association (CISA), at a press conference.
The term prices negotiated with global miners should become a benchmark unified price, and the import agencies could charge 3-5 percent in commission on top of the term prices, Luo said.
The move aims to regulate excess iron ore import by steel makers and trading firms, which distorted the supply and demand balance and disrupted the annual contract talks, Luo said.
The price talks, which are continuing, appeared to be snagged on China's insistence upon bigger reductions than the 33 percent cut agreed to earlier with Japanese and Korean steel mills. News reports and industry analysts say China wants a 40 percent price cut.
Luo said foreign iron ore suppliers promoted massive sales on the spot market, leading to huge stockpiles.
Spot iron ore accounted for 82.7 percent of imports this year, leading to excessive imports that far exceed actual needs, the CISA said.
Luo made the remark as the spot price of iron ore in China surged above the contract prices offered by three large miners - Rio, BHP and Vale.
Benchmark spot prices of iron ore in China rose above $100 a ton on Thursday, as compared with $58 a ton in April, according to industry consultant Mysteel.
Iron ore imports rose 29.3 percent year on year, to 297 million tons, in the first half of this year, while traders imported 131 million tons, up 90.4 percent from last year.
There are 152 iron ore importers in China this year, exceeding the 112 licenses that CISA issued, the association said.
Luo said the annual talks were ongoing and CISA would keep working to push them forward.
"We are working for a reasonable result and hope to reach a win-win situation," Luo said.
"For small steel companies, a unified price system is definitely good news," said Fan Haibo, a steel analyst from Xinda Securities. "Large steel mills and trading companies have made huge profits by selling iron ore to small steel factories who do not hold import license."
"But how to define which firms have 'agent license' seems essential. Giving them the privilege is akin to guaranteeing a business always makes a profit," he said.

Iron ore resources founded in Anhui(2009/8/5)

After two years of exploration and drilling more than 70 holes measuring 80,000 meters in total, a geological team has detected a large iron ore deposit in Lujiang County, Anhui. According to a preliminary report, the deposit has a magnetite reserve of 120 million tons and a sulfur-iron reserve of 35 million tons with a potential economic value of nearly 50 billion yuan. The definite report will be completed by 2010.

July profits to top RMB20B(2009/8/4)

Experts say the steel industry is expected to have a profit of more than 20 billion yuan in July based on the highest monthly rise of 11.9 percent in the benchmark steel index in eight years. The sector is likely to pocket 100 billion yuan in profits in the whole year of 2009, up from the last year’s 84.6 billion yuan. The long product index was up 13.4 percent and the flat index rose by 9.5 percent during the month. Recovery in demand, the end of de-stocking and favorable policies intended to stimulate the economy were responsible for the price rally. Any possible price adjustment in the third or fourth quarter would be a modest, rather than a sharply plummeting one.

China to reinforce coke, ferroalloy elimination(2009/8/4)

China has included two more sectors- ferroalloy and coke - into its energy saving and emission reduction program in 2009. Under the new plan, the country will remove six million tons of coke, 700,000 tons of ferroalloy, 15 million kilowatts of coal-fired electricity, 10 million tons of pig iron, six million tons of steel, 50 million tons of cement and 500,000 tons of papermaking capacity this year. During the first three years of the 11th Five-year Plan (2016-10), the country’s energy consumption of the unit GDP reduced by 10.1 percent; sulfur dioxide and Chemical Oxygen Demand emissions dropped by 8.95 percent and 6.61 percent respectively, all lagging behind the first planned schedule. 20 more gas desulfurization units should be added to sintering machines in steel manufacturing in 2009.

China’s steel exports slows down in H1(2009/8/3)

China exported 7.99 million tons of steel products in the first half of this year, down 68 percent year-on-year, with its ranking on the world’s largest steel exporters dropping from the first place last year to the No 7. Exports to Europe decreased by 81 percent, those to Asia by 75 percent, those to the Middle East by 68 percent and those to the United States, Canada and Mexico by 51 percent. China imported 10.7 million tons of steel in the first six months, up 30 percent , thus resulting in a net import of 2.71 million tons.

Steel prices continue to climb(2009/7/31)

Steel prices have kept rising for 15 weeks in a row. The price of construction steel has been climbing over the past three days with a daily increase of 100 yuan per ton on average. Experts attributed the rally to the positive prospects on the steel market in the future, noting this would inevitably give a boost to the costs of iron ore. The steel futures index set a new high on July 29 following a continued surge for seven trading days.

Large mills make profits in June(2009/7/31)

71 medium and large steelmakers in China had a profit of 3.55 billion yuan in June after eight months of losses, with eight mills remained at loss, down 12 from May. They had a net profit of 1.73 billion yuan in the first half of this year. According to data from the CISA, two thirds of the 24 steelmakers with a production scale of more than five million tons each suffered a loss in the first half, and six out of the ten with a capacity of over 10 million tons each made losses. Main business operating losses for the steel industry stood at 11.64 billion yuan.

Steel indices rebound in Q2(2009/7/29)

China’s climate index for steel rose to 94.94 points and the early-warning index for the sector stood at 60 points in the second quarter of 2009, much higher than those in the first quarter, according to China's business climate index survey released by the National Bureau of Statistics and a research center under the Economic Daily on July 28. Indicators on steel production, prices, sales revenue and profits increased and total loss value in the industry continued to decline. The industry is expected to go better in the second half with the national economy further rebounding.

Detailed merger regulations to be released soon(2009/7/28)

Detailed regulations on merger and acquisition in the steel industry are expected to be published as early as September, which will remove the biggest barrier to realizing the goal of an extensive cross-regional consolidation among the steel sector. According to the plan, the traditional tax division system would be replaced by a new tax distribution system, under which tax revenues created by a target company are likely to be equally distributed among the governments in charge of the parties involved in the deal. China will finally see the top five steelmakers dominate the steel market with a 45 percent share.

Steel industry may record huge H1 losses(2009/7/23)

As of July 21, 26 steelmakers had released their business results in the first half of this year with an estimated loss of 8.64 billion yuan, down 124.55 percent year-on-year. 12 of them warned a possibility of gaining less income and 14 others predicated a loss. The 26 mills recorded a net loss of 3.51 billion yuan in the first quarter and 5.12 billion yuan in the second quarter. Weak demand, overcapacity, steep falls in both sales and prices are said to be responsible for the decline.

KPMG: Stimulus package to drive China’s steel consumption(2009/7/22)

China is expected to consume about 427 million tons of steel products in 2009, KPMG China said in a report. Hit by the financial crisis, China consumed 20 million tons less steel last year. Among the four trillion yuan stimulus package, the projects will account for about 90 percent that are directly bound up with the consumption of construction steel, which represents 54 to 55 percent of the country’s total steel consumption. China has a steel capacity of over 500 million tons, thus having entered an episode of overcapacity in the context of dwindling demand. The unprecedented difficulties facing China’s steel industry, according to the report, include the low degree of the industry’s centralization, improper employment and the lack of control over resources, in addition to external factors.

More scrap imported via Zhangjiagang port(2009/7/21)

Zhangjiagang port saw a tremendous increase in scrap imports in the first half of this year. 2.24 million tons of scrap were imported via the port with an import value of $630 million during the period, up 1,108.6 percent and 512.8 percent year-on-year respectively. Local dealers have showed no hesitance to import scrap from Japan, the Unite States and Hong Kong since the latter half of last year by taking advantage of the astonishing low price of about $180 per ton amid the global financial crisis.

Utilization rate remains low in Q2(2009/7/20)

China experienced a utilization rate of just 73.1 percent for its steel industry in the second quarter of this year and 70.4 percent for the ferroalloy sector. According to the National Bureau of Statistics, problems confronting with the national economy include falling prices, apparent shortage of overall demand, a slow growth rate of the economy, overcapacity in some sectors and lower utilization rates.

June output hits new high(2009/7/20)

Data from the National Bureau of Statistics showed China produced 258.8 million tons of pig iron in the first half of this year, up 5.6 percent year-on-year; 266.58 million tons of crude steel, up 1.2 percent; and 316.48 million tons of steel products, up 5.7 percent. In June, China produced 48.93 million tons of pig iron, 49.39 million tons of crude steel and 62.14 million tons of steel products, all setting the new records. The average daily output stood at 1.65 million tons in June.

Coke consumption may exceed 300 million tons(2009/7/17)

Calculated at steel production levels in May and June, China would consume more than 300 million tons of coke in 2009, said Huang Jingan, president of China Coking Industry Association. But there is a high degree of uncertainty associated with whether the output growth is sustainable due to lack of private investment and strenuous efforts to scrap outdated capacity. China’s major companies produced 126.41 million tons of coke in the first five months, down 10.06 million tons or 7.4 percent year on year. Shanxi Province saw a decline of 12.2 million tons or 32.5 percent. The association will continue to propose a 50 percent output limit to local producers in July. The coke industry nationwide suffered 725 million yuan losses in the first five months with more than 300 still losing money at the moment.

Problems in steel sector remain serious (2009/7/16)

Phenomena that challenged routine practices have emerged in the steel sector on many occasions, which raised further concerns in addition to a drop in profits. While the installed capacity of steel outnumbers the supplies by over 150 million tons, China’s crude steel output saw a year-on-year increase of 0.54 percent in the first five months of this year, compared to a 36 percent fall for the rest of the world, and has become a net steel importer since March. The output has been on the rise since May despite emergency orders issued by the Ministry of Industry and Information Technology to curb production. Moreover, long products which are referred to as “outdated materials” enjoy better sales than high value added flat products.
Calculated at a daily output of 1.45 million tons on average during the first half, China will produce almost 530 million tons of steel in 2009, much greater than the 460 million tons scheduled by the Adjustment and Revitalization Program on the Steel Industry. While steel prices began to rebound from late April, problems remain serious as a result of fast growth of output, sharp decline in exports and higher costs of raw materials.

BDI hits 7-week low amid iron ore deadlock(2009/7/15)

The Baltic Dry Index (BDI) dropped to a 7-week low of 2,985 points on July 13, down 30 percent from 4,291 points on June 3. As the iron ore price talk deadlock goes on between the Chinese side and Australian suppliers, China began to slow iron ore imports from mid-June. Just 9.3 million tons of iron ore were exported from Port Hedland of Australia to China in June, down 11.5 percent from 10.6 million tons in May. China’s imports of iron ore from Brazil also declined 16 percent. India’s 63.5 percent grade fines was offered at 660 to 670 yuan per ton delivered at Tianjin port on July 13 while Australia’s 62 percent grade Newman fines was quoted at 720 to 730 yuan per ton on the same basis, compared with the average 610 yuan per ton and 620 to 630 yuan per ton respectively during the week ending June 19. Analysts say the BDI will rise again after the price talk is over in the latter half.

China remains net importer in June(2009/7/14)

Customs data showed China exported 1.43 million tons of steel products in June, up 80,000 tons from May and down 72.6 percent year on year. From January to June, China exported 9.34 million tons of steel products, down 65.4 percent. In June, the country imported 1.63 million tons of steel products, down 20,000 tons from May and up 29.4 percent from the same period of last year. In the first six month, the country imported 8.13 million tons of steel, down 1.8 percent. China had a net steel import of 200,000 tons in June and a net export of 1.21 million tons in the January to June period. It exported 10,000 tons of billet in June as well as in the first half of this year, down 93.9 percent; and imported 380,000 tons in June, down 320,000 tons from the previous month and 2.65 million tons in the first half, up 25 times. Net imports of billet stood at 370,000 tons in June, bringing the net imports of both billet and steel products that month to 570,000 tons, down from one million tons in May. China exported 30,000 tons of coke in June, down 98 percent year on year and 230,000 tons in the first half, down 96.9 percent; and imported 55.29 million tons of iron ore in June, up 46.3 percent and 297.18 million tons in the first half, up 29.3 percent.

Hebei and Shandong also raise coke prices(2009/7/13)

Following the price increase of coke in Shanxi, Shandong and Hebei authorities also decided to raise the price of coke by 50 to 60 yuan per ton for July shipment. In Hebei, the new price of second grade metallurgical coke is offered at 1,700 yuan per ton and 1,780 yuan per ton for first grade material. In the Tianjin market, the FOT price of quasi first grade metallurgical coke is quoted at 1,730 to 1,750 yuan per ton, duty unpaid.

3 Chinese mills included in 2009 Fortune 500 List(2009/7/10)

Three Chinese mills have been named to the 2009 Fortune 500 List released on July 8, 2009. Baosteel Group Co Ltd advanced by 39 places from last year and jumped to 220th place with operating revenues of $35.52 billion in 2008, followed by Hebei Iron and Steel Group at 375th with operating revenues of $24.43 billion yuan and Jiangsu Shagang, a non-government run steelmaker, at 444th with operating revenues of $20.90 billion. It is also the fifth time for Baosteel to get this glory since 2005. A total of 43 Chinese enterprises are included in this year’s Fortune 500 List.

Ranking of Chinese Mills

Ranking of Baosteel by Years

Ranking of Chinese Mills in Details

Coke price up 60 yuan in July(2009/7/10)

Shanxi Coking Industry Association has proposed a month-on-month rise of 60 yuan per ton in the monitoring price to 1,710 yuan per ton for coke with sulfur content below 0.7 percent and ash content below 12.5 percent in July. The decision was made with targets to minimize losses of producers, relax supply tension and calm down chaos in the recent coke market.

Regulations on M&A to be released soon(2009/7/9)

A long-awaited regulation on steelmakers’ merger and acquisition is expected to be unveiled soon by the Ministry of Industry and Information Technology in a bid to further encourage consolidation among steelmakers from across the country. China will try to shape up several super large steel producers with a capacity of more than 50 million tons each such as Baosteel, Anben Group and Wisco by 2011, according to the adjustment and revitalization program on the steel industry. Data shows there are more than 500 crude steel producers in China with the top five mills accounting for just 28.5 percent of the country’s total steel output, well below the 60 to 70 percent of market shares dominated by the top four producers in the advances nations such as the United States, the EU and Japan.

June steel output hits new high(2009/7/6)

Domestic daily crude steel output hit 1.52 million tons in mid-June, the highest level so far this year and equivalent to 556 million tons annually, much higher than the 470 million tons projected by the MIIT. The output continued to rise because of higher steel prices, the recovery of demand, and mills’ favorable bookings. As of last week, domestic steel prices rose for nine weeks in a row. Experts predicated a better market in the latter half of this year than the first half, on the grounds that the four trillion yuan investment package is taking a stronger effect on the real estate, railways, auto and home appliance sectors.

China to produce 10 million tons of stainless this year(2009/7/2)

China is expected to produce 10 million tons or more of stainless steel this year as long as no such a great fluctuation occurs in the international and domestic markets as one happened in the latter half of last year. China has a designed stainless capacity of over 20 million tons. The country produced 500 million tons of crude steel last year, only 1.65 percent of which were stainless steel, compared with more than 2.5 percent in advanced nations.

New measures to scrap outmoded capacity(2009/7/2)

Anhui Province plans to conduct technical reform and updates on 14 items covering a steel capacity of 8.2 million tons and produce 12.5 million tons of steel by 2010. In order to replace and eliminate outdated capacity, 10 municipal governments have signed letters of guarantee promising to launch these items by the end of October this year and finish them in late 2010.

Second batch of export quota on coke released(2009/7/1)

The Ministry of Commerce announced the second batch of export quota on coke under the general trade in 2009 on June 29, 2009. Companies that received the quota are listed below:
二〇〇九年六月二十九日

China opposes US investigations against steel imports(2009/7/1)

The Chinese government was strongly opposed to the US’s decision on June 26 to launch anti-dumping and countervailing investigations against wire mesh pallets from China. This is the third trade case filed by the US against steel imports from China in nearly ten days following the June 17 investigation on steel wire strand and the June 19 case on steel grating. According to China, these moves not only sent a wrong message of trade protectionism to the United States and international community, but also seriously harmed the interests of downstream sectors in the US.

Large mills make profits in May(2009/6/30)

The CISA said 89 large and medium-sized mills made a profit of 1.26 billion yuan in May while 25, or 28.1 percent, made a loss of 1.82 billion, 1.29 billion yuan lower than April. The steel industry remained a deficit at 3.89 billion yuan in the first five months, compared to a profit of 86.51 billion yuan during the same period of last year.

Merger approved by provincial government(2009/6/26)

The Provincial Government of Hebei has approved a share buying and swap program regarding the consolidation of Hebei Iron and Steel Group’s three listed arms – Tangshan Steel, Chengde Vanadium and Titanium and Handan Steel. Earlier, the Ministry of Commerce had given up further examination over the proposed deal. The deal is still subject to the approval from the shareholder’s meetings of each company and China’s Securities Regulatory Commission.

Large iron ore deposit discovered in Liaoning(2009/6/25)

A super large iron ore deposit consisting of a blend of magnetite and hematite with grades ranging from 25 to 62 percent was found in Qiaotou County, Benxi City of Liaoning Province. The proven reserves of the deposit are conservatively estimated at three billion tons with actual reserves perhaps doubling. The discovery, coupled with the CISA’s harsh crackdown on speculative iron ore imports, is very likely to play an important role in the ongoing iron ore price talks, presenting the Chinese side more confidence and time to seek the desired settlements of a 40 percent year-on-year markdown.

Higher output causes concern over mounting inventory(2009/6/24)

In the past week, China’s spot prices of steel continued to rise sharply whereas the future prices registered a fall for three days running. Despite a drastic shortfall in global capacity utilization, China’s crude steel output rose to 46.46 million tons in May, equaling to 520 million tons annually, well in excess of the projected consumption at 460 million tons this year. Higher inventories seen in major cities in late May have directly been bound up with the increased output.

Daily steel output rises in early June(2009/6/23)

China’s daily crude steel output came to 1.50 million tons in the first ten days of June, up from 1.49 million tons in late May and equaling to 547 million tons on yearly basis, compared to 500 million tons last year and 460 million tons previously predicted for 2009. Key medium and large-sized mills are expected to have produced 11.78 million tons of steel over the same period. The CISA noted steel prices showed signs of slight recovery in May thanks to a series of stimulus economic policies by the state, growing demand from domestic market and the process of de-stocking. But the problem of an overall overcapacity in the industry remained serious.

Steel service alliance formed in Beijing(2009/6/23)

The Capital Iron and Steel Service Alliance was officially launched in Beijing on June 21 and, at the opening ceremony, received two major engineering contracts with a total value of more than 1.2 billion yuan. The alliance, co-founded by nine steel producers and steel-related service suppliers from the capital city of China including Shougang Corporation, MCC Jingcheng Engineering Technology Co Ltd and the Iron and Steel Research Institute, is to build its own brand and help local producers to extend their market shares by participating in international and domestic tenders for engineering services in a collective move.

China's steelmakers possibly turn to spot market if price talks break down, analyst (2009/6/19)

 BEIJING, June 18 (Xinhua) -- The spot market would be the decisive factor in China's iron ore imports if the ongoing negotiations between the country's steel mills and the overseas miners break down, Thursday's China Daily quoted an industry insider as saying.
The supply chain would continue working smoothly on the spot market, for many domestic steel makers and foreign suppliers had been tapping this as a main business model recently, the newspaper quoted Hu Kai, an analyst with Umetal.com.
The 33 percent price reduction reached between Japanese steel makers and the Austrilian miners in late May, and the proposed alliance between Rion Tino and BHP Billiton, the world's two largest miners, have imposed great pressure on the Chinese side in the negotiation.
But with only two weeks left for the expiry of last year's ironore supply contract, the China Iron and Steel Association (CISA), leader in the iron ore talks, insists a 40 percent price cut from the Australian miners.
The major reason that China's steel makers reject the 33 percent price cut was that the rate was at least 5 U.S. dollars higher than the current spot market price, according to Hu.
In addition, Chinese steel plants will suffer huge losses if they agree to a 33 percent price reduction this year, said the CISA earlier.
Many insiders believe if the Chinese side fails to reach the deal with suppliers before June 30, they may seek a new quarterly pricing system, within which the steel mills ask for quarterly price adjustment under the benchmark price in accordance with the ups and downs of steel mills' cost and prices.
The Chinese government also expressed strong opposition to the Rio Tino and BHP Billiton's proposed alliance.
An official with the Ministry of Industry and Information Technology (MIIT) said the proposal had a "strong monoplistic color".
China might have to seek new policies and regulations to enable its companies to have a bigger say in iron ore price talks if the tie-up was found to be monopolistic, the newspaper quoted Chen Yanhai, another official with the MIIT.

Market is recovering, but not firm(2009/6/19)

The CISA predicted in a report while domestic demand for steel would continue to rise driven by an array of national policies designed to expand domestic demand, sustain the growth and make structural adjustments, the market in the foreseeable future remains bleak due to weakening international demand, high levels of domestic capacity and prolonged situation of a net steel import. As of the end of May, the domestic steel price index stood at 98.14 points, up 2.58 points from the previous month – the first month-on-month rise in nearly three months, with a growth rate of 2.7 percent; and down 58.72 points year-on-year with a decline rate of 37.43 percent.

Handan City to scrap more outmoded capacity(2009/6/18)

The Handan municipal government has launched a “thunderclap” campaign that would result in cleaning up 4.97 million tons of outmoded capacity from 38 local coke, pig iron, cement and papermaking plants by December 10, 2009. Steelmakers that have failed to meet the national steel industry policy are required to pull down their blast furnaces, converters, electric furnaces, accompanied wind turbines, sintering machines and chimney stacks, as well as having grounds leveled up prior to that time.

Rio-BHP tie-up harms China’s steel industry(2009/6/18)

China is working on countermeasures to protect the country’s steel industry from the proposed Rio-BHP tie-up, said Chen Haiyan, director of the raw material department under the Ministry of Industry and Information Technology. “The alliance between Rio Tinto and BHP Billiton would present great negative impacts on the healthy development of the steel industry in China, the world’s largest iron ore importer,” said Chen at an industry meeting held in Anshan, Liaoning.
Chen Haiyan made the following remarks at the meeting:
1. The proposed tie-up with a strong nature of monopoly would possibly strike a heavy blow to China’s steel industry and stunt the development of domestic mills. Thereby, we would watch it closely and find ways to cope with it.
2. The merger should be conducted under China’s Anti-Monopoly Law.
3. If the tie-up proved to be monopolistic, we have to seek new policies and regulations to allow Chinese companies have a bigger say in iron ore price negotiations.
4. A principle to be followed is the CISA’s status as an exclusive agent on behalf of the domestic steel industry in iron ore price negotiations.
5. Domestic steelmakers should strengthen their interior managements, promote technical advances and updates, launch structural adjustments and energy-saving and emissions reduction drive, as well as enhance the comprehensive utilization rate of resources.
6. China should increase exploration of domestic mines to reduce reliance on imports.

MIIT mulls M&A rules(2009/6/17)

The Ministry of Industry and Information Technology (MIIT) is working on rules to regulate merger and acquisition activities in the steel industry. It’s reported there are more than 500 producers of crude steel throughout the country each with an average output falling short of one million tons per year. Five largest mills in China accounts for just 28.5 percent of the country’s total output, compared with 60 to 70 percent in the advanced economies such as the United States, the European Union and Japan. Thus it’s imperative to revitalize the industry through optimizing and consolidating the industry’s institutional structuring, especially under the circumstances of the global financial crisis and an overall excessive capacity. There has been progress in the combination of industrialization with information, added the MIIT.

Qian’an to shut pellet shaft furnaces(2009/6/16)

The Qian’an municipal government, Hebei, has decided to shut down 108 shaft furnaces at 78 pellet plants by the end of June, 2009 that had failed to meet environmental standards as of the end of last June. Administrative enforcement measures are expected to be employed in 20 days, when the business licenses and organization code certificates of the producers involved will be revoked, electricity supply for them will be cut off and power supply facilities removed. Police and law enforcement officials are to get involve in the clampdown moves, and officials with the environmental departments will take part in supervision and acceptance.

Shanxi encourages coal mergers(2009/6/16)

The Shanxi government is calling for mergers and consolidation activities in the coal industry across the province, participated by such coal related industries as power, metallurgy and chemicals in a bid to reverse the infamous image of its local coal industry – too many producers, small size of each producer and a fragmented layout. According to a plan, the province’s five largest state-run coal producers each will be responsible for integrating no less than 100 local mines with an aim to reduce the number of coal mines to 1,000 with the output of a single mine reaching more than 900,000 tons per year by the end of next year.

No green-light for steel projects on environmental violations(2009/6/15)

The Ministry of Environmental Protection has decided to suspend approval for steel projects in Shandong with immediate effect for their violation of regulations on the environmental protection. These projects include hot rolled sheet/strip technical reforms belonging to Rizhao Iron and Steel and a five million t/y steel plant at Weifang Iron and Steel. They failed to meet the relevant regulations of the Steel Industry Development Policy, which stipulates “new capacity is allowed as long as old one should be eliminated simultaneously” and “new steel projects in the coastal areas or near deep sea harbors must be equipped with 3,000-cubic meters or above blast furnaces, or 200-ton or above converters”.

Steel imports further rise in May(2009/6/12)

Customs data showed China exported 1.35 million tons of steel products in May, down 60,000 tons from April and 75.7 percent year-on-year, bringing the total exports in the first five months to 7.9 million tons, down 63.6 percent. China imported 1.65 million tons of steel products, up 30,000 tons from April and 23.6 percent from the same period of last year, bringing the five-month imports to 6.5 million tons, down 7.1 percent. The country experienced a net steel import of 300,000 tons in May. China imported 700,000 tons of billet in May, up 30,000 from April. The country’s net billet imports were 700,000 tons in May. China exported 20,000 tons of coke in May, down 98.8 percent year-on-year, and exported 200,000 tons of coke in the first five months, down 96.6 percent. China imported 53.46 million tons of iron ore in May, up 37.4 percent and 241.92 million tons in the five-month period, up 25.7 percent.

MOC: China entitled to veto Rio-BHP merger(2009/6/12)

China has rights not to recognize the validity of Rio-BHPB merger as long as the alliance would constitute impacts to competitive order in domestic steel market in a restrictive and exclusive way, the Ministry of Commerce said in an initial statement on the proposed cooperative deal between the two international mining giants. Provided the potential new joint venture is set up in disregard of strong opposition from the Chinese side, it will likely be exposed to trade sanctions imposed by the government while concluding business with Chinese partners in the future.

China’s daily output stays high in late May(2009/6/10)

China's daily crude steel production in late May reached 1.49 million tons. The government wants to cap this year's total steel output at 460 million tons, 8 percent lower than last year, but it has so far been unable to rein in the sector. China has been urging its steel mills to curb production, in an apparent attempt to stabilize domestic steel prices and to hold a better position in iron ore term negotiations with miners including BHP Billiton, Rio Tinto and Vale. The country’s monthly iron ore import volume has been on a record-breaking run, reaching an all-time high of 57 million tons in April, and stockpiles at major ports have soared beyond 75 million tons, according to Chinica Shipbrokers Ltd, up around a quarter since the beginning of the year. Last month, the Ministry of Industry and Information Technology urged commercial banks to cut off credit to steel enterprises that are "blindly expanding in disregard of the market".

China raises export rebates on steel(2009/6/10)

China has decided to lift export rebate rates on parts of commodities starting June 1, with alloy steel, profiled shapes and structural steel being adopted an increased rebate rate of 9 percent. Based on the export figures in the first four months, the move would produce $170 million worth benefits for the steel industry this year. Steel exports covered by the tax revisions account for 12.5 percent of export volume and 10.8 percent of export value in the first four months, and 13.7 percent and 12.1 percent respectively in April. The CISA vice general secretary Qi Xiangdong noted the rebate adjustments this time, albeit small in scale, will encourage bigger mills to export more steel products by offsetting their losses due to the appreciating yuan.

Three favorable factors give Chinese steel mills edge amid price(2009/6/9)

BEIJING, June 4 (Xinhua) -- A global iron ore oversupply, lower spot prices, and huge stockpiles in China's domestic iron ore market will improve the odds of Chinese steel mills in securing more cuts in its iron ore price negotiation with overseas suppliers, Du Wei, an Umetal analyst told Xinhua Thursday.
China Iron and Steel Association (CISA) refused on May 31 to accept the iron ore price cut between 33 percent and 44 percent reached between Rio Tinto and Japan's Nippon Steel Corp, and insisted on a price cut of more than 40 percent in the annual contracts of iron ore.
Analysts and insiders believe an estimated global excessive supply and a considerable decline in demand impose great pressure on the miners amid the economic downturn.
"The global iron ore supply surplus is estimated to be between 200 million and 300 million tonnes," said Luo Bingsheng, vice chairman of the CISA in Shanghai Tuesday.
Total iron ore demand is expected to drop between 150 million and 200 million tonnes this year, according to Xu Xiangchun, chief information officer of Mysteel.com Wednesday.
Luo also said China's steel maker would turn to the spot pricing, abandoning the benchmark price system, if the suppliers deny its 40 percent to 50 percent price cut request.
"Despite a 33 percent price cut, the long contract price is still 8 to 9 U.S. dollars higher than the spot price," said Du Wei.
Huge stockpiles should prompt China's steel makers to call for a bigger cuts in iron ore prices in the progressing negotiation, Du said.
The latest data from the www.umetal.com shows that iron ore stocks at Chinese main ports exceeded 70 million tonnes as of May 31.
Du estimated that China's overall stocks had surpassed 110 million tonnes in consideration of 30 million tons of stocks by steel plants.
However, analysts and insiders believe the negotiation will drag on beyond the end of June.
According to Luo, China's steel mills lost 5 billion yuan (732 million U.S. dollars) in the first four months this year.
If the CISA compromises, the long contract price would be set at a high level during the peak season, and China's steel plants would suffer more in profit loss resulting from high costs, said Du.
"We have not set a deadline of when the negotiation would end. Even if the two sides had not reached the deal by the end of June, it would not affect the production of China's steel plants," said Shan Shanghua Wednesday.

Domestic prices rise for seven weeks(2009/6/9)

Domestic steel prices continued to rise entering June, marking a 7th week of the upward trend in a row. The prices of construction steel saw the biggest rise last week; medium and heavy pate, large and medium sections rose slightly; and hot rolled sheet remained almost unchanged. The price of 20mm rebar stood at 3,660 yuan per ton on Tuesday, up 48 yuan per ton from late May; 6.5mm high-speed wire rod was 3,624 yuan per ton, up 45 yuan per ton; 3.0mm hot rolled sheet was 3,659 yuan per ton, up 21 yuan per ton; and 1.0mm cold rolled coil 4,432 yuan per ton, up 47 yuan per ton. With more mills restarting their facilities, experts expressed concerns over the future market where no substantial improvements in the domestic hot rolled inventories are expected for the time being.

More mineral deposits to be found in Xinjiang(2009/6/8)

More mineral deposits are expected to be discovered in Xinjiang in the future as hundreds of billions of yuan from the government and nearly two hundreds of domestic and overseas enterprises are spent on the resources exploitation there. A report will be submitted by 2012 about ten potential large deposits 500 to 1,500 meters beneath the earth surface in the Tianshan Mountain, the Altay Mountain, the Junggar Basin, the Kunlun Mountain and the Altun Mountain that may contain 600 million tons of iron ore, seven million tons of copper, 2.5 million tons of lead and zinc, and 900,000 tons of gold.

Shanxi coke price may rise in June(2009/6/5)

The Shanxi Coking Association decided to raise the monitoring price of coke by 60 yuan per ton in June following a rise of 30 to 60 yuan per ton in May. The new price will rise to 1,720 yuan per ton, but experts say local steel producers can afford the moderate rise thanks to their better performances in April. Sales of real estate were increased by 16 percent in March, indicating the acceleration of investment in the sector.

CISA: Price talks may end in late June(2009/6/4)

Rio Tinto said in a statement that Taiwan’s CSC and Dragon have agreed on the same price terms as their counterparts in Japan and South Korea in the 09 iron ore contract prices, adding difficulties to the ongoing negotiations the Chinese side is taking part in. The CISA deputy vice president Luo Bingsheng said China has mapped out a new plan that could lead to closing a deal by the end of June. He stressed the new price should return to the level of 2007, namely slashing by at least 40 percent year-on-year. There would be a surplus of 200 million tons of iron ore stocks this year if traders and producers continue to import iron ore. According to senior officials with Hebei Iron and Steel, there is room for the iron ore prices to further decline and the CISA should stick to its stance.

Steel output may hit year-high in May(2009/6/4)

Statistics showed the CISA-members produced 11.47 million tons of crude steel in the second ten days of May, bringing the total output across the country to 14.78 million tons. Rebar and wire rod are the biggest winners thanks to the decreased stocks and the spike in fixed assets investment. Experts say crude steel output may hit a monthly high of this year in May.

China launches investigation into GO electrical steel imports(2009/6/3)

The Ministry of Commerce said it launched an anti-dumping case into US and Russian imports of grain-oriented flat-rolled electrical steel, a soft magnetic material used in transformers, rectifiers and reactors, from June 1 in response to applications from Wisco and Baosteel, with an investigation period from March 1, 2008 to February 28, 2009. China consumed about 680,000 tons of GO electrical steel last year, and imported 59,000 tons from the US and 79,900 tons from Russia. The total imports from the two countries were 64.74 percent more than those in 2007. The imports in the first two months of this year were up 22.85 percent year-on-year.

Steelmakers in Hebei see profits again(2009/6/2)

In the first four months, steelmakers in Hebei produced 40.97 million tons of steel, 40.46 million tons of steel products and 41.52 million tons of pig iron, up 8.31 percent, 9.99 percent and 12.5 percent respectively. Key steel producers had a year-on-year profit drop of 88.26 percent, 14.58 percentage points lower than 102.84 percent during the first quarter. In April, these producers earned a profit of 371 million yuan, compared to a loss of 62 million yuan in March.

China’s steel output may account for half of world total in 2015(2009/6/1)

A French advisory firm recently claimed world steel output would rise to 2.2 billion tons in 2015 from 1.3 billion tons last year and China’s steel output would account for 48 percent of the world totals. Most experts believed output will edge up a bit in the latter half of this year but there will be no evident signs of recovery next year. Orders with more than 1,000 tons in quantity have dried up in Europe, where mills are competing with each other in thin business.

Shanxi unveils adjustment and revitalization program on metallurgical industry(2009/5/31)

The objectives of the program covering steel include:
1. Control overall output in the province. Pig iron and crude steel output should be restricted to 45 million tons and 40 million tons respectively annually.
2. Eliminate more than 20 million tons of outdated pig iron capacity and 16 million tons of steel capacity by the end of 2011.
3. Build large backbone steel bases centering on Taiyuan, Changzhi, Yuncheng, Linfen and Lvliang.
4. Taiyuan Steel is striving to have a capacity of over 20 million tons by 2011 and 30 million tons by 2015. Its presence in the local steel market will be increased to 75 percent from current 25 percent.
5. Make the level of main facilities domestically advanced;
6. Optimize products structuring;
7. Enhance the level of energy conservation and emissions reduction.

Steel industry posts loss in April(2009/5/26)

Large and medium sized mills posted a loss of 1.87 billion yuan in April, with the number of money-losing mills increased by four from the first quarter. According to the CISA deputy vice president Luo Bingsheng, during the first four months the steel industry made a loss of 5.18 billion yuan, 29 of all medium and large mills suffered from losses. Apparent crude steel consumption was 170.43 million tons, up 11.03 million tons, or 6.92 percent, year-on-year. As of the end of April, the domestic steel price index stood at 95.56 points, down 50.92 points, or 34.76 percent, from the same period of last year. The index was the lowest since 1994.

MIIT mulls plan to improve external environment(2009/5/26)

In order to prevent exports from further sliding, the CISA called on to improve external environment for steel exports on May 22, which has drawn attention from the MIIT. The measures may include a flexible export duty for steel, further adjustment of export rebate rates, a fair tax burden, regulation on import and export orders, and reinforced efforts in monitoring imports and anti-dumping actions. In the first four months, China’s exports of steel slumped 59.7 percent while imports spiked 9.9 percent. The price gap between average export price and import price has declined to 12.15 percent in the first quarter from 27.41 percent last year, indicating an almost lost of household materials to overseas ones in terms of price edge.

Morgan Stanley: Steel prices may stay at low levels(2009/5/25)

It is unrealistic to expect a recovery in steel prices and, from the long run, the prices are likely to stay at the level just a little more than the costs, Morgan Stanley said in a report. Constant expansion and the rising level of imports have offset the recent increase in orders, in particular for long products, putting a cap on the recovering prices. Morgan Stanley remained cautious about the steel industry in Chinese mainland, South Korea and Taiwan Island. The group made forecast about the steel price index in Chinese mainland at $490 per ton in 2009.

Steel industry incurs net loss in the first four months(2009/5/25)

72 key medium and large-sized steel producers had a net loss of 5.18 billion yuan in the first four months of this year following a rising price for five consecutive weeks since mid-April, with nearly 40 percent of mills making a loss. A source with the MIIT said the financial crisis may cause a 50 percent reduction in steel exports in 2009. Steel exports last year accounted for about 10 percent of the total output of 600 million tons. Meanwhile, domestic market remained obscure with supply still outnumbering demand in general. It is not an easy job to eliminate outdated capacity since both institutional and social issues are involved.

CISA denies reports on conclusion of 09 iron ore prices(2009/5/22)

The CISA announced a statement on May 21 to deny media reports that the Chinese steelmakers have agreed on a 30 to 35 percent cut in 2009 iron ore prices and criticize relevant medias for their groundless, irresponsible and unethical reports. The statement said steelmakers in China, Japan and South Korea are in the middle of the 09 iron ore price negotiations in earnest with foreign major suppliers amid the global financial crisis. Authentic and reliable results could only be attained through parties involved in the talks.

Output limits plan faces resistances from small mills(2009/5/20)

The MIIT has issued a notice to curb the excessive growth of steel output nationwide and ordered commercial banks to cut or even halt loans to steelmakers with low efficient capacity, but what the effectiveness of the move would bring to small-sized mills remained unknown. There were two advantages in smaller mills in the face of the economic downturn. First, they can make a swift adjustment on what to produce in accordance with demand. For example, these mills produced more long products that enjoyed fast sales in the first quarter. Second, they can purchase iron ore at a lower price than that agreed by large mills under contract term. According to experts, by these two advantages, the plan may face resistances from smaller mills, which pulled down the market share of key producers to 76.59 percent in March from 79.81 percent a month earlier.

Shanxi to integrate coke industry(2009/5/20)

According to an adjustment and revitalization program on the Shanxi coking industry, the province will limit coke output to 140 million tons in two years and to 120 million tons over the next six years. By 2015, a number of super large coking producers will have been built each with an annual capacity ranging from 5 to 10 million tons. Top ten producers would account for over 60 percent of the province’s total capacity. Coke ovens with a chamber less than 4.3 meters high will be eliminated by the end of 2010 (excluding stamp-charged coke ovens with a chamber in 3.2 meters high or above). Energy consumption to produce one ton of coke throughout the province would reduce to less than 150 kg of standard coal by 2011 and further to 120 kg by 2015.

China’s steel industry may be in red this year(2009/5/19)

Xu Lejiang, chairman of China's largest steelmaker Baosteel Group claimed that China's steel industry may post a loss for 2009 as overproduction persists in a weak global market. Players remained cautiously optimistic about the recent recovery that has lasted for the fifth week as of last week. Mills have been under pressure due to the surge of some imported steel products with a lower price than that of household ones and overcapacity.
Xu said China produced 500 million tons of steel products from a total capacity of 650 million tons last year, which indicated that the problem of overcapacity has become more than prominent. It was the financial crisis that has led to an earlier outbreak of the problem and made it more profound in its implications. It is impossible for the industry to grow at an annual rate of 20 percent as it used to be, he added.

MIIT: Overcapacity may reach 30 percent this year(2009/5/18)

In an emergency notice informed by the MIIT, the steel industry is required to put the work of controlling gross output as the top priority. Local commercial banks should reduce or suspend their loans to low efficient steelmakers and unreasonable expansion projects. The CISA and the CCCMC should work out ways to further reduce the number of iron ore importers. Local authorities are expected to eliminate outdated capacity and facilities ahead of the timetable they agreed with the NDRC.
According to the MIIT, China’s apparent crude steel consumption is estimated at 462 million tons in 2009, up about 10 million tons from last year, while net steel exports would drop by 40 million tons. Therefore, there will be a surplus of 25 to 30 percent in capacity, especially in flat products, against the real demand. Furthermore, the excessive imports of iron ore have added difficulty to mills’ cash flow and made them more exposure to the operational risks.
　

Rescue plan on equipment manufacturing unveiled(2009/5/15)

The State Council released a long-awaited rescue plan on equipment manufacturing with a period from 2009 to 2011. Here are some goals of the plan:
- Enhance the quality of homemade equipment and keep the self-sustaining ratio of domestically produced equipment at 70 percent;
- Strengthen competitive edge in the international market and stabilize the export market shares;
- Satisfy demand with homegrown equipment from the state key projects such as mega kilowatts nuclear power, new energy power, high-speed trains, high-end digit control machines and basic manufacturing equipment;
- Realize localization in nine major industries including steel, auto and petrochemical.

MIIT cracks down on blind expansion(2009/5/14)

The rapid growth of steel capacity encouraged by the loose monetary policy eventually triggered what the CISA called the sternest campaign ever to curb excessive capacity nationwide. In an emergency notice to local authorities that oversee the industry and large steelmakers across the country, the Ministry of Industry of Information Technology (MIIT) suggested that commercial institutors cut or suspend loans to the steelmakers that blindly ramp up capacity regardless the real demand. According to the latest statistics, 72 key medium and large mills produced 127.4 million tons of steel in the first quarter of 2009, up 1.4 percent year-on-year; while crude steel apparent consumption stood at 126.3 million tons during that period, indicating a persistently weak demand and obvious overcapacity. “It is a very dangerous expansion for lack of demand.” said Shan Shanghua, president of the CISA.

Hebei Iron and Steel eliminates pig iron capacity(2009/5/13)

Hebei Iron and Steel Group Handan Steel started to scrap four 300-cubic-meter blast furnaces on May 11 with a total capacity of more than 1.7 million tons, equal to the production scale of a medium sized mill. The move indicated a full start-up of updates project in Handan Steel’s old space.

More BFs to shut down in Sichuan(2009/5/12)

The Sichuan Economic Committee has deiced to inquire into the situation of outdated steel capacities still under operations across the province from May 20 and lay down plans to eliminate them.
According to a program, the province will eliminate blast furnaces with a size of 300-cubic-meter or below, electric furnaces and converters with a size of 20-ton or below by 2010; scrap BFs with a size of 400-cubic-meter or below, EFAs and converters with a size of 30-ton or below by 2011; and shut down a great number of BFs within the next three years.

Concentrates iron ore project launched in Liaoning(2009/5/11)

Wanhua Group succeeded in operating a 300,000 t/y iron ore concentrates project in Chaoyang County, Liaoning on Mary 2, costing 280 million yuan. The group is a non-governmental producer of gold, iron ore concentrates and ferrous metals and is one of the backbone enterprises in the province. The project has gained great supports from the local government that built a 40,000 kilowatts power station with partially self-raised funds of 15 million yuan to supply two million kilowatts per hour of electricity a month for the mine’s normal operations.

Coke price up 50 yuan in Hebei(2009/5/8)

The Hebei Coking Industry Association decided to raise the monitor price of coke by 50 yuan per ton on May 5 following a rise of 30 yuan per ton on May 1. Some mills have already accepted the new prices. Insiders attributed the rise to the supply deficiency and a 50 yuan per ton rise in coking coal price. They didn’t rule out the possibility of further rise in coke price in the future.

Iron ore stocks at ports reach 62 million tons in April(2009/5/7)

Domestic ports of a large scale were expected to handle 9.2 million pieces of containers in April, down 13.4 percent year-on-year; 53.5 million tons of iron ore, up 24.2 percent; 40 million tons of coal, down 7.7 percent; and 15.3 million tons of crude oil, up 9 percent, according to the Ministry of Transport. Iron ore stocks at main ports amounted to about 62 million tons.

China to remove another 100 million tons capacity in three years(2009/5/6)

The NDRC has reiterated the importance of structural adjustments and set timetable for the steel industry to eliminate outdated capacity on its official website. Key tasks on energy saving and emissions reduction this year include: Promote structural optimization and updates, rein in duplicate construction of high energy consuming, high polluting, and low efficient capacity; enhance entry threshold of environmental protection; prohibit financial institutes from lending money to high energy consuming and over capacity sectors; and speed up the elimination of outdated capacity. The country plans to scrap 15 million kilowatts of thermal power stations, 10 million tons of pig iron capacity and six million tons of steel capacity this year, and eliminate another 72 million tons of pig iron capacity and 25 million tons of steel capacity by 2011.

Large magnetite found in Northern China(2009/5/6)

A new vanadium and titanium magnetite was discovered in Chengde City, the largest vanadium and titanium producing base in North China. The ore deposit has an estimated reserve of one billion tons with an average grade of nearly 30 percent. China is the world’s third largest producer of V&T magnetite with resources mainly located in Chengde, Hebei and Panzhihua, Sichuan. 4.5 billion tons of magnetite resources have been found in Chengde, making the region the largest vanadium and titanium base in North China. Vanadium is a main raw material used in the steel industry to enhance steel’s strength, tenacity, ductibility and heat resistance.

China to scrap 72 million tons pig iron capacity in three years(2009/5/5)

Progress has been made in eliminating outdated capacity in China, according to the NDRC. The country should scrap blast furnaces with a size of 300-cubic-meter or below as well as converters and electric furnaces with a size of 20-ton or below on schedule. By 2011, it will have eliminated 72 million tons of out-fashioned pig iron capacity and 25 million tons of steel capacity. Four measures are mentioned to facilitate these goals: Revise and improve industrial policies; set up withdrawal mechanism for backward capacity; promote technical updates among steelmakers; and strengthen efforts in supervision and inspection.

Iron ore demand may diminish 60 million tons in 2009(2009/5/4)

China’s demand for iron ore in 2009 may decrease 60 million tons, or 21 percent, from last year to 350 million tons, said Zou Jian, president of the China Metallurgical Mining Enterprises Association. He added domestic iron ore output would reach 860 to 880 million tons this year, up 20 million tons. In the first quarter, the country imported 131.53 million tons of iron ore, up 20.86 million tons, or 18.85 percent, year-on-year; produced 166.72 million tons of iron ore, up 4.21 million tons, or 2.6 percent. An increase of 5.04 million tons in pig iron output in the first quarter meant an increase of 7.96 million tons of consumption in charged ore. However, China imported 20.86 million tons more iron ore in the period, indicating a surplus of 12.90 million tons of iron ore supplies. As a result, the average landed price of imported iron ore stood at $80.47 per ton, down $50.53 per ton, or 38.57 percent.

Large iron ore resources found in Liaoning (2009/4/29)

A super large iron ore deposit was found 1,100 meters beneath the earth in Benxi city with an estimate reserve of more than two million tons, which would make Liaoning the biggest iron ore producing province in China. The deposit with Fe grade of 34 percent would meet demand from local major steelmakers such as Ansteel, and Benxi Steel for over 50 year. Now the iron ore resources in Liaoning account for one fourth of the country’s totals.

Hebei to eliminate 20 million tons of steel capacity(2009/4/28)

Hu Chunhua, governor of Hebei Province, put forward development goals for the local steel industry at the 32nd executive meeting of the province: Control gross output, curb blind expansion, enhance percentage of hi-tech and high value added products, ensure an annual growth of 15 percent in the industry increment value, hold the percentage of the increment value against provincial GDP at 13 percent, and enhance the industry’s degree of centralization. By 2011 there will be no less than five large mills each with a capacity of over five million tons. The proportion of cold rolled and galvanized in sheet and strip line will add 10 percentage points, while that of narrow strip will reduce 10 percentage points; that of 400MPa high-strength rebar will amount to 70 percent. Domestic and international advanced facilities will account for more than 50 percent. 20 million tons of outdated capacity will be eliminated within three years. Comprehensive energy consumption will not exceed 615 kg of standard coal, new water consumption will be less than four cubic meters, and dust emissions less than 0.9 kg.

More efforts in scraping outdated capacity(2009/4/24)

Minister of Environmental Protection noted more efforts should be done to eliminate obsolete capacity in 13 sectors including iron, steel making, ferroalloy, and coke. In 2009 the power, iron making, steel making and papermaking industries will wash out 15 million kilowatts, 10 million tons, six million tons, and 500,000 tons of outdated capacity respectively. The country will install de-sulfurization capacity of more than 50 million kilowatts at coal-fired power stations and 20 gas de-sulfurization machines at mills’ sintering plants, introduce technology and products adaptable to the state conditions that can curb the pollutant of nitrogen oxide, promote a healthy development of de-nitration industry, and increase the usage of clean energy in the car industry.

Large mills make losses in Q1(2009/4/24)

According to the CISA, domestic medium and large-sized mills made a loss of 3.31 billion yuan in the first quarter, due mainly to the fact of oversupply, compared to a total profit of as much as 47.16 billion yuan in the same period of last year. 20, or 34 percent, of the 72 key mills made a loss. Steel output stood at 124.74 million tons in the first quarter, up 1.74 million tons or equal to 517 million tons annually, much higher than the targeted 460 million tons. China exported 5.14 million tons of steel products, down 50 percent. The diversion of export capacity into domestic market also caused the increased household supply. The production costs have dropped 350 yuan per ton. The prices of domestic iron ore and imported one declined 44 percent and 26 percent respectively whereas coking coal was up 12 percent.

Container sector to use less steel in 2009(2009/4/22)

China’s container sector is expected to experience the worst times in the first half of this year and consume 2.8 to 4 million tons of steel in 2009, down 30 to 50 percent year-on-year, according to Shi Yanqiu, general secretary of the China Container Industry Association. In 2008, domestic production and sales of containers dropped 10.53 percent to 2.32 million pieces (about 3.35 million TEUs) amid the weakening international demand due to the financial crisis, thin businesses, and a soft freight market. She said the recovery of the industry this year will depend upon the revival of the world economy, and whether the business can return to a normal growth rate, the freight market can rebuild confidence, and shipping companies can raise enough money to buy containers.

Steel industry faces period of structuring(2009/4/21)

Baosteel Group chairman Xu Lejiang said at the Boao Forum for Asia 2009 that the outbreak of the financial crisis has made the Chinese steel industry fully exposed to the structuring problems and it is time for the industry to adjust its structure. The industry cannot expect a good prospect unless so much outdated and high polluting capacity is eliminated. As regard to iron ore prices, he noted the prices of primary products should return to the true nature of the goods and be a reflection of scarcity, supply and demand position, and sustainable development of these goods.

Steel prices and exports slumped in March(2009/4/21)

According to the CISA, as of the end of March, the domestic steel price index stood at 97.59 points, down 44.72 points, or 31.42 percent, from the same period a year before, and was lower than the level of 100 points in April 1994 when China first published the steel index. Meanwhile, the country exported 5.14 million tons of steel products in the first quarter of this year, down 54.9 percent year-on-year; and produced 124.52 million tons of crude steel in the period, equal to annualized 504.99 million tons. The CISA attributed the price fall to the slowdown of steel-consuming sectors and high steel output, and reminded mills of several principles as follows. Control gross output and reduce purchase costs of fuel and raw materials; seek greater potentials in the overseas market so as to ease household pressure; pursue industry self-control conventions and guarantee a fair competition order; as well as observe the WTO rules and oppose international protectionism and cheap dumping actions.

Sheet prices fall below costs in Hebei(2009/4/20)

Domestic steel prices have declined for nine consecutive weeks as of this week ending April 17. According to a source with the Hebei Metallurgical Industry Association, concerns were raised that the steel market continued to drop while the capacity in the province has not been completely released. The price of a certain type of sheet has fallen below its costs. Sheet market, as one of the major steel products mainly used in the manufacturing sector such as shipbuilding and auto, collapsed as the shipbuilding industry has slumped deep into a recession due to the financial crisis. Other products with a falling price across the province included rebar, large and medium sections as well as hot and cold coil.

Rizhao: China’s largest port of iron ore imports(2009/4/17)

Rizhao Port remained a position as China’s largest port of iron ore imports by handling shipment of 28.26 million tons in the first quarter, up 16.2 percent year-on-year; and accommodated 37 Capsize vessels each with 160,000-odd dwt in March alone. The port will invest 1.58 billion yuan this year in the building of infrastructure such as large tonnage gantry cranes and ore ship unloaders.

More efforts to crack down environmental issues(2009/4/16)

Several authorities including the Ministry of Environmental Protection recently vowed to curb blind investment under the pretext of expanding domestic demand and sustaining development, prevent the new round of duplicate construction of high-polluting, high energy consuming, and low-efficient projects, tackle a number of outstanding environmental issues that do harm to the public health and sustainable development as well as guarantee a sound environment to fuel the steady and fast economic development.

Low-price iron ore imports to hit spot market(2009/4/16)

The China Customs data showed the country imported 52.08 million tons of iron ore in March, up 5.34 million tons from February and 46.2 percent year-on-year; and imported 131.47 million tons in the first three months, up 18.8 percent. Experts warned the world’s top three iron ore suppliers have changed their tactics in the ongoing iron ore contract price negotiations. While continuing to show no hurry in the prolonged price talks, they have moved to drive domestic and Indian suppliers out of market by offering low-price materials in spot market. The costs of the top three mining giants are said to be at $20 to 30 per ton, a level that is cheap enough to force a good deal of domestic mines to shut down, let along their superiority in quality. The experts suggested domestic mills import iron ore according to their actual demand, continue to develop overseas resources, and strengthen efforts in consolidating assets nationwide.

Surplus coke capacity surpasses 100 million tons(2009/4/15)

The China Coking Industry Association president Huang Jingan said recently coking enterprises across the country are still expanding their capacity in earnest despite a serious imbalance between supply and demand. The current coke capacity has reached 390 to 400 million tons, overshadowing a demand of up to 280 to 290 million tons by over 100 million tons. Besides, exports of coke during the first two months stood at just 100,000 tons, down 93.9 percent year-on-year. On the other hand, as much as 50 million tons of coke capacity is expected to be launched from proposed projects and projects under construction in the next two years. China’s demand for coking coal will reduce more than 50 million tons in 2009 due to the sharp drop of steel and coke output worldwide.

Export market remains tough in April(2009/4/15)

China exported 1.67 million tons of steel products and billet in March, up 7 percent from February, while importing 1.73 million tons, up 24 percent. At 60,000 tons, the country became a net crude steel importer at an interval of over two years. The reasons for this, according to experts, are weak overseas demand and the disappearance of advantages in domestic steel prices. The CISA general secretary Shan Shanghua warned a dim prospect for export orders although the country raised export rebate rates on some steel products from April 1.

New ore deposits found in Anhui(2009/4/14)

The Geological Survey of Anhui Province recently found a super large magnetite deposit and a pyrite ore deposit in the valley of Nihe River, Lujiang, with a proven reserve of 120 million tons for the former and more than 30 million tons for the latter. The combined potential economic value reached more than 40 billion yuan. Meanwhile, a 100,000-ton molybdenum reserve in Shapinggou, Jinzhai County, and an 80,000-ton molybdenum deposit in Huangshanling, Chizhou, were also detected with a potential value of over 30 billion yuan and 20 billion yuan respectively.

China’s March steel exports total 1.67 million tons(2009/4/14)

China exported 1.67 million tons of steel products in March, up 120,000 tons from February and down 59.76 percent from a year earlier. The total exports in the first three months stood at 5.14 million tons, down 54.8 percent. In March, the country imported 1.27 million tons of steel products, up 16.51 percent from February and down 15.33 percent year-on-year, bringing the 3-month imports to 3.23 million tons, down 22.5 percent. The net steel products exports in March stood at 400,000 tons, down 14.89 percent and 2.25 million tons, or 84.91 percent, respectively. China did not export a single ton of billet while importing 460,000 tons of billet, bringing the total imports to 900,000 tons, up 17 times. It exported 50,000 tons of coke in March and 150,000 tons in the first three months, down 94.88 percent. The country’s imports of iron ore hit a monthly high at 52.08 million tons in March, up 5.34 million tons from February and 46.2 percent year-on-year. The total imports in the first three months reached 131.47 million tons, up 18.8 percent.

Coke price down on weak export demand(2009/4/13)

Coke exports via Tianjin port were 3,000 tons, 4,000 tons and 30,000 tons respectively in the first three months of this year, down about 70 percent from a year earlier. Shanxi, a major coke-producing area, exported 44,000 tons of coke in the first two months, down 94.9 percent, including 6,365 tons in February, down 98.1 percent.
Since the end of 2008, the price of coke has slumped as well due to weak demand from downstream sectors. The price may further drop by 100 yuan per ton since 90 percent of coke output is consumed by the steel industry that hasn’t yet shown signs of recovery.

Record iron ore imports despite steel output cut in March(2009/4/10)

Despite a record-breaking iron ore import, China saw a month-on-month decline of nearly two million tons in steel output in March. Inventory, though keeping a trend of downswing, was relatively high compared with actual demand, leaving pressures on the market in the future. In March, China’s import of iron ore reached 51 million tons, hitting a record on both monthly and quarterly basis. Domestic mill has decreased the ratio of consumption of the homegrown iron ore to 30 percent from 60 percent over the past six months, thanks to the falling prices of imported iron ore.

Rio’s 20% price cut proposal rejected by CISA(2009/4/9)

Rio Tinto, the world’s second- largest iron ore producer, offered a temporary 20 percent price cut to Asian steelmakers after annual contract negotiations stalled. But some Chinese mills rejected the discount as too small. Rio’s offer falls short of the 40 percent cut that Chinese steelmakers, the world’s largest buyers of iron ore, are demanding because of falling steel prices. Annual contract talks may take another four months to settle, a source said. China is pressing producers to cut 2009 contract prices to below 2007 levels, or at least a 40 percent reduction for imported ores, the CISA president Shan Shanghua said. As of March 27, the landed price of 63.5 percent grade spot iron ore from India has dropped by 57 percent to current $60 to $62 per ton from the late 2007’s level of $205 per ton.

Steel futures make steady debut(2009/4/8)

A total of 995,860 lots of futures contracts on reinforcing steel bar and 228,988 lots on wire rod have been concluded on the Shanghai Futures Exchange since China launched its first steel futures on March 27, with the transaction amount of 35.15 billion yuan for the former and 7.78 billion yuan for the latter. As of last Friday, the contracts of rebar stood at 77,068 lots, up 64.17 percent from the first trading day; and that of wire rod reached 19,050 lots, up 45.71 percent.
Insiders say the interaction of prices between steel futures and spot market is clearly evident. The market is active in trading, making risk manageable, and operating in a steady mode.

Coke output limited to 50 percent(2009/4/7)

Spurred by mills’ output cuts, coke producers in Shanxi, Shandong and Hebei again decided to limit their output to more than 50 percent. Experts say the price of coke may further drop 100 yuan per ton as 90 percent of coke output is consumed by the steel industry that showed no upturn in sight. Steel producers in Hebei lowered the procurement price of coke by 150 to 300 yuan per ton in March.

Steel industry suffers huge losses in Q1(2009/4/3)

Data showed China’s ferrous metal melting and processing industry had a gross profit of minus 769.02 million yuan in the first two months of this year, down 103.2 percent year-on-year; and the ferrous metal ore mining industry had a gross profit of 2.34 billion yuan, down 65.84 percent. The decline in profits of both industries was far below that of 37.3 percent in the country’s other industries of a large scale. Experts say the weak demand was responsible for the deteriorated margins in the steel industry. As the end of February, stocks of flat product and long product have reached 5.46 million tons and 5.87 million tons respectively. The steel price index continued to fall.

Few mills witness more gains last year(2009/4/1)

11 out of the 12 steelmakers that have released 08 annual reports recorded a dip in net profits. Fushun Steel, a producer of special steel, reported an increase of 46.48 percent in net profits. Among others, Chengde Steel & Vanadium incurred the biggest drop of 93.61 percent from 2007’s 12.72 billion yuan and Baoshan Steel had a net profit of 6.46 billion yuan, down 49.21 percent.
Experts attributed the massive losses to falling demand from domestic and overseas markets caused by the financial crisis and a number of iron ore stocks bought by mills at higher costs.
　

Foreign media： Iron ore suppliers agree on price cuts(2009/3/31)

Foreign media reported that international iron ore suppliers have agreed to cut the price by 40 percent over the previous year, close to the level in 2007, in order to seize market shares. The CISA secretary general Shan Shanghua said upon the new deals, Chinese steelmakers could enjoy a payment discount of 40 percent based on the contract prices last year, with the contract period starting on January 1, 2009. However, Brazil’s Companhia Vale do Rio Doce was reportedly in ignorance of the price-cut news, saying its stance on price terms remained unchanged.

SHFE warns steel futures risks(2009/3/30)

Wire rod and rebar will be traded on the Shanghai Futures Exchange (SHFE) on March 27. A source with the SHFE warned that either steel producers or other investors should fully get to know the trading mechanism, rules and risks of the steel futures to prevent unnecessary losses.
He said steel producers should engage in the steel futures with a main purpose to ensure a steady operation and make sales and profits manageable, instead of making profits through the speculative trading. They should work out interior organization structure, management system, decision-making flow, working flow and risk control measures adaptable to hedging.

Export duties on ferroalloy may be lowered (2009/3/30)

China, the world’s largest ferroalloy producer, is possibly to lower export duties on ferrochrome and ferromanganese in the second half of this year from current 20 percent to assist domestic producers in export businesses, a source with the China Ferroalloy Industry Association said. Meanwhile, the government will soon release a name list of ferroalloy producers that are allowed to bargain with power companies on electricity fees on monthly basis.
China produced 18.25 million tons of ferroalloy last year, up 4 percent year-on-year, and is expected to produced 14 to 15 million tons this year.

China to expedite coking elimination(2009/3/27)

A source with the Ministry of Industry and Information Technology says the country will expedite the elimination of outdated coking capacity and further supervise and control exports. In the last three years of the 11th Five-Year Plan, 50 to 60 million tons of low efficient coking capacity will be scraped. A quite number of coking producers will face the similar situation of mergers and acquisitions to the steel industry, which will lead to a massive closure of those who are lacking competitiveness, lower energy and raw material costs, and less resistance to mergers and acquisitions from local protectionism.

Coke exporters call on duty cuts(2009/3/27)

Experts say the government should lower export duties of coke to 15 percent from the current 40 percent, while increasing export rebates in order to enhance exporters’ competitiveness.
In the long run, export of coke should not be encouraged, for coke is a non-renewable strategic resource. But it is irrational to see coking enterprises suffer from massive losses. Therefore, for the sake of these producers, a moderate reduction in export duties can somewhat help alleviate their burdens.

Chinese firms face hurdles in Australia(2009/3/26)

BEIJING, March 25 -- The Australian government has decided to extend its review of two other Chinese firms' investments in the country's miners just one week after a similar extension was granted to examine Aluminum Corp of China's (Chinalco's) investment in Rio Tinto.
The country's Foreign Investment Review Board announced that it would extend its probe of the takeover of OZ Minerals by China's Minmetals by as long as 90 days from March 24, OZ Minerals said on Monday.
The Minmetals Corp, China's largest metal trader, last month proposed to buy the Australian mining firm for A$2.6 billion ($1.7 billion) in cash to ensure adequate supplies of non-ferrous metals. The Melbourne-based company operates zinc, lead, copper, gold and silver mines in Australia and overseas.
OZ Minerals said it understands the requirement for proper processes to be followed. "It is in the interests of OZ Minerals, its shareholders, employees and all its stakeholders that Minmetals' application is determined as soon as possible," it said. The company has asked its lenders to extend a March 31 debt deadline to Sept 15 to give it time to conclude the deal. If the takeover fails, OZ will be unable to refinance $1.3 billion in debt. Minmetals said yesterday it was "optimistic" it would win approval for the bid from Australia.
Bloomberg quoted Wang Jionghui, general manager of the mineral resources division at Minmetals, as saying that the obstacles to overseas investments would fall because mining companies need capital.
The Review Board announced last Thursday that it would extend its review of Fortescue's planned sale of a stake to China's Hunan Valin Iron and Steel for up to 30 days.
Fortescue said it remains confident that the structure of the share subscription agreement will enable Valin to obtain government approval. Valin plans to pay about $770 million for a 16.5 percent stake in Fortescue under a deal announced last month. A steep fall in the prices of key resources, triggered by the global economic downturn, has provided opportunities for Chinese companies to make overseas investments, analysts said. But such intensive acquisitions may rouse public as well as government concerns at the destination countries. (Source: China Daily)

China’s steel exports dampened on Russian trade action(2009/3/26)

Russia’s Ministry of Industry and Commerce said local producers have filed anti-dumping investigations against nickel stainless sheet under 19 HS codes imported from China. Experts reminded that Chinese exporters should take an active response to the cases since the Russian might lodge the cases with a purpose to protect the local industry, rather than alleged dumping at low prices. The Russia Special Steel and Alloy Customers and Suppliers Association said the country’s consumption of imported stainless sheet accounts for over 70 percent of the total supply of 170,000 to 180,000 tons each year. According to data, China encountered nine remedy trade cases launched by five former CIS countries including Russia, Uzbekistan, Ukraine, Belarus and Kazakhstan in 2008.

Mills see net profits further dip(2009/3/25)

Three mills have reported a minus growth in 2008 results. Bayi Steel posted a net profit of 103.88 million yuan in 2008, down 74 percent from a year earlier; Daye Special Steel had a net profit of 200.88 million yuan, down 38 percent; and Xinxing Ductile Pipe had a net profit of 510.69 million yuan, down 14 percent. With the economy slowing in the latter half of last year, especially in the fourth quarter, the steel industry saw a lowered capacity to make profits. The above three listed mills incurred operational losses to different degrees.

Steel prices go down for six week(2009/3/24)

Domestic steel price index experienced a 6th week of decline with the price movement of different varieties mixed. The price of long product continued to dip, that of flat product stopped falling and that of cold rolled sheet rebounded. Construction steel prices showed signs of recovery in the Beijing market; construction steel, hot rolled coil and cold rolled products rose slightly in the Shanghai area, and construction steel and cold rolled coil also went up in the Guangzhou area.

Coal shipment climbed in Qinhuangdao(2009/3/23)

Qinhuangdao Port completed coal shipment of 10.34 million tons during the first 17 days of March, up 43.4 percent from the same period of last month at 7.21 million tons, equal to 600,000 tons of outbound shipment per day, up 41 percent from daily average of 424,000 tons in February. As of March 18, there were 121 vessels waiting for coal loading in the port, compared to 99 on March 16 and 72 on February 15. Experts say sharp increase in demand from the thermal power sector in the south is responsible for the rebound.

Mills to face another production cuts(2009/3/19)

Experts say the steel industry will face a new round of production cuts on falling demand and overcapacity. A number of small and medium-sized mills began to halt or cut production in February owing to falling steel prices. As of the last week, the domestic steel price index had seen a decline for five consecutive weeks. Baosteel and Wisco also announced plans to lower April prices. 19 of the 20 mills unveiling 2008 business results warned a lower income and only one posted a higher result.

MIIT solicits opinions on steel industry policies(2009/3/18)

The Steel Industry Development Policy has been playing an important role in boosting the structural updates and sustainable development of the steel industry since its announcement and implementation in July 2005. In the light of the State Council’s rescue plan on the steel industry, the Ministry of Industry and Information Industry (MIIT) now plans to revise and amend the policy with an aim to meet the changing situation of macro economy at home and abroad, cater to the new trend of the industry’s development as well as better display its guiding influence to the development of the steel industry. The MIIT is now soliciting opinions on supplement and amendment of the policy from the public including steelmakers. Opinions and suggestions in written form should be submitted to the Policy Development of the MIIT before April 15, 2009.

Address: No.13 West Chang’an Avenue, Beijing
Postal code: 100804
Unit: the Policy Development of the MIIT
Fax: 010-66023282
E-mail: cyjgc@miit.gov.cn

                                                March 7, 2009

Coke prices down 150 yuan(2009/3/17)

Coke producers in Shanxi lowered the monitoring price by 150 yuan to 1,700 yuan per ton in March just one month after they raised the unit price by 80 yuan per ton, according to the Shanxi Coke Industry Association. Meanwhile, these producers increased the limitation of output to 60 to 70 percent. The association urged its members to avoid undercutting among each other and maintain a steady market situation. It also called on a joint purchase of coking coal as raw material in order to lower costs and secure a stable supply.

Iron ore throughput surges in Rizhao(2009/3/16)

In January Rizaho port saw an increase of 122.3 percent in iron ore throughput from the previous month and just down 1 percent year-on-year. This trend continued in February with a rise of 12 percent compared with the figures on both yearly and monthly basis. The quantity of iron ore imported by Rizhao Steel and other small mills accounted for 21 percent of the total imports via the port. Small mills may cut output again since the market has witnessed a 3rd week decline in steel prices, which is possible to cause a higher inventory level at the port. However, the market still has a chance of revival stimulated by the government’s four trillion yuan investment and the release of rescue plans on steel, auto and shipbuilding industries.

Projects halted on environment problems(2009/3/13)

An official with the Ministry of Environmental Protection said as of the end February, the authority has received 195 applications waiting for approval on environmental protection and rejected 14 environment-threatening projects covering chemical, petrochemical, steel, thermal power and papermaking industries, without unveiling the name of these projects. The 14 projects cover a total investment of 104 billion yuan.

Iron ore imports surge in February(2009/3/13)

According to the Customs, China imported 46.74 million tons of iron ore in February, up 43 percent from 32.65 million tons in January, bringing the total imports during the first two months to 79.39 million tons, up 6 percent. However, the price of imported iron ore in March has dropped to $70s per ton from $80 in January, which means the more iron ore traders import, the more losses they will incur.
Besides, domestic mills are again under pressure to slash output due to the recent too rapidly restored capacity and still sagging export markets. Therefore, the prospect is dim for traders who have stockpiled a lot of iron ore materials.

Large coking coal deposit discovered in Inner Mongolia(2009/3/12)

A large high-quality coking coal deposit was discovered in Alashan Zuoqi County, Alashan Prefecture, Inner Mongolia with an estimated reserve of up to 300 million tons after the Inner Mongolia Bureau of Geology and Mineral Resources completed a drilling work stretching 5,122.63 meters.

Production limits voiced in coke industry(2009/3/11)

In view of the falling prices of coke and a lower price of coking coal in the international market, the Hebei Coke Industry has urged its members to limit output to 30 to 40 percent in March while giving priority to quality and services, in order to foster a stable and healthy market situation.

CSSC deepens cooperation with steelmakers(2009/3/11)

China State Shipbuilding Corporation (CSSC) singed ship plate procurement deals with four steelmakers on March 9 in the wake of striking a similar deal with Baosteel Group in early January. The shipbuilder has promised to increase the orders it placed from the four mills that include Shougang, Valin Xiangtan Steel, Chongqing Steel and Shagang Group by 15 percent this year, to help them get over from the current financial crisis. CSSC is currently buying more than 80 percent of ship plate from the country’s largest producers of ship plate also including Baosteel.

Steel capacity slumped in Hebei(2009/3/10)

Some small mills in Hebei saw their profits dropping from the latter half of last year, causing the province’s overall capacity slow by 20 to 30 percent, said Wang Yifang, chairman of Hebei Iron and Steel Group Co., Ltd and also a CPPCC member. But not a single mill has gone bankrupt due to the market reason and those busted were all associated with their failure to meet environmental protection requirements.

Steel industry allies with auto sector(2009/3/10)

More and more carmakers and parts manufacturers have been tying the knot with the steel industry since the end of last year to combat the financial crisis. Among the cooperation included Wisco and BYD Co., Ltd, Jinan Steel Group and the Shandong Association of Automobile Manufacturers covering more than 300 members, Baosteel and China National Heavy Duty Truck Group Co., Ltd as well as Baosteel and Dongfeng Nissan Passenger Vehicle Company.

Q2 market likely to rebound(2009/3/5)

Experts say steelmakers enjoyed a better market in the first quarter than the previous one. Data showed that 71 large and medium steelmakers saw a sharp drop in their losses in January 2009, with the amount falling to one billion yuan from 29.1 billion yuan last December. Steel prices in the second quarter will keep stable, prompted by a traditional midseason of the steel market and the government’s four trillion yuan stimulus plans. The recent falling prices of steel may have a positive effect on the ongoing iron ore price negotiations as the Chinese side could use this as an excuse to lower iron ore prices.

Steelmakers see drop in January losses(2009/3/4)

71 large and medium steelmakers saw a sharp drop in their losses in January 2009, with the amount falling to one billion yuan from 29.1 billion yuan last December. But experts warn the loss coverage in March may further enlarge due to the fluctuation of profits during February and March. Traders and downstream users are most likely to be exposed to the risks of a possible falling price. As a reference, daily crude steel output reached 1.33 million tons in January, equivalent to annualized 485 million tons. The price of hot rolled coil has dropped to 3,200 yuan per ton.

Hebei to scrap 5.15 million tons of pig iron capacity by 2010(2009/3/3)

The Hebei government decided to scrap 5.15 million tons of outdated pig iron capacity and 8.13 million tons of steel capacity by 2010 and increase the minimum size of blast furnaces to be dismantled from 300-cubic-meter to 400-cubic-meter, that of converter from 20-ton to 30-ton in three years. 40-odd non-governmental steelmakers in Tangshan, Hebei have been incorporated into two groups, Changcheng Steel and Bohai Steel, with a steel capacity of 17 million tons and 12 million tons respectively.

Iron ore price talks may stretch on widening price gap(2009/3/2)

Domestic steel prices have fallen to around the same level of December 2008. The landed spot price of imported iron ore into China dropped to $77 per ton, 30 percent lower than $99 per ton under long-term contracts. Experts believe the iron ore price talks between the Chinese side and the top 3 mining groups would last for longer period in view of repeat fluctuation in the steel prices. The daily output in January reached 1.33 million tons, equal to annualized 480 million tons. The market cannot absorb so much new capacity before the four trillion yuan stimulus package takes effect. Iron ore stocks at 19 major ports amounted to 57.74 million tons as of last week, up 430,000 tons from the previous month.

China announces stimulus plans for nonferrous metals, logistics(2009/2/27)

BEIJING, Feb. 25 (Xinhua) -- China's State Council on Wednesday announced support plans for the country's nonferrous metals and logistics sectors.
Presided over by Premier Wen Jiabao, Cabinet members agreed to promote company restructuring and will offer subsidized loans to support technical innovations within the nonferrous metals sector.
The export rebate rates of nonferrous products should be adjusted, said the Cabinet without elaborating.
The establishment of a national reserve system for the industry was also demanded.
The product structure of the nonferrous industry should be adjusted to meet the demand of power, transportation, construction, mechanics and light industries, the announcement said.
Cabinet members agreed to eliminate technically undeveloped producers and avoid the increase of excessive output capacity.
Nine key projects were also decided on as a way to boost the logistics sector, including supplying necessary equipment as well as promoting an industry standard and an information platform.
The plan would also build a special district for logistics development, and boost urban delivery, wholesale and rural logistics.
The logistics industry was a service sector that could give a major boost to production and consumption, as well as provide a great number of job opportunities, said the meeting.
Company merging and restructuring should be encouraged in order to nurture large and modern logistics companies which could compete in the international market.
The development of logistics for energy, mining, automobile, and medical industries and agricultural products should be especially encouraged.
The meeting underlined the development of technical innovations and decided that central and local governments should allocate 100billion yuan within two years to support the promotion and application of innovative products.
Beginning last month, China has unveiled stimulus packages for 10 industries. Previous support packages include the auto, steel, shipbuilding, textile, machinery-manufacturing, electronics and information industries, the light industry and petrochemical sectors.

Steel output restored in January(2009/2/26)

Steel output resumed to 90 percent of normal capacity and some positive signs emerged in the basic raw materials and equipment manufacturing sectors in January, said Li Yizhong, minister of Industry and Information Technology. However, many uncertain factors still existed, including deteriorating exterior environment caused by the spiraling global financial crisis and deep-seated structural problems in the domestic market.

New export duties to be unveiled soon(2009/2/25)

Insiders say China will take measures to adjust import and export duties on steel products to ensure that direct and indirect steel exports account for more than 15 percent of the country’s total output and to regulate policies on fair trade. These measures, which are due to be released in March, are drafted by the Ministry of Finance, together with the National Development and Reform Commission, the State Administration of Taxation, the Ministry of Commerce and the Ministry of Industry and Information Technology.

09 iron ore price should be slashed(2009/2/25)

The price of iron ore should be slashed greatly as there is an obvious phenomenon of overcapacity in the iron ore market, the CISA vice president Luo Bingsheng said in an interview. He added there will be no change in China’s buying iron ore through long-term contracts and Baosteel’s status as a sole representative on behalf of the Chinese side in the iron ore price negotiations. A contract term starting from January 1 of each year is appreciated by the Chinese side judging from the market situation there. The country’s iron ore imports in 2009 might be decreased by 60 million tons from last year, the first decline seen in recent years.

Domestic steel prices further dip(2009/2/24)

Domestic steel prices continued the downward trend last week. The price of construction steel dropped more than 300 yuan per ton in Guangzhou, Wuhan, Chengdu and Xi’an and that of medium plate fell by 300 yuan per ton in Hangzhou, Wuhan, Beijing, Tianjin, Shijiazhuang, Shenyang and Xi’an. Larege- and medium- sized sections saw a decline of 30 to 50 yuan per ton. Hot rolled coil plunged 400 yuan per ton to 3,500 yuan per ton or below in the wake of a weeklong adjustment. The price of 1.0mm cold rolled coil settled at 4,495 yuan per ton, down 186 yuan per ton.

Industrial mergers highlighted by MIIT(2009/2/24)

The Ministry of Industry and Information Technology asked relevant authorities in a notice to boost merger and acquisition moves among the steel, electrolyte aluminum, auto, cement and textile industries, so as to seek a greater development of these sectors amid the financial crisis. To ensure a steady industrial development is regarded as top priority while various kinds of mergers are encouraged. All-out efforts should be given to address overcapacity in the steel, non-ferrous metal, construction materials and chemical industries.

New CISA’s president appointed(2009/2/23)

Deng Qilin, general manager of Wuhan Iron and Steel Group, was elected as new president of the China Iron and Steel Association at the CISA’s 2009 council (extended) meeting on February 19.

Governments buying props up steel production(2009/2/19)

Steel makers didn’t trim output in February mainly due to demand from state-backed projects. Shougang Qian’an plans to produce 250,000 tons of steel in February, Tangshan Steel to produce 420,000 tons and Baotou Steel to produce 452,000 tons, all resumed to normal levels.

Coke makers ease production limits(2009/2/18)

With coke demand slightly increasing, coke producers in Shanxi Province decided to ease production limits to 40 to 50 percent from 60 to 70 percent from February. A source said the limitation couldn’t be completely lifted because the price of coal continues to rise and the steel market remains unsteady. The local coke industry will give priority to the supply to large steelmakers in Northern China and make limited shipment to smaller ones.

Steelmakers see their profits plunge in 2008(2009/2/17)

According to the CISA, domestic steelmakers had a combined profit of just 84.6 billion yuan in 2008, down 43.7 percent year-on-year and a profit and tax of 114.9 billion yuan, down 23 percent. Steel production was slumped caused by rising costs and the weakened market. As of the end of December, steelmakers had a combined stock worth up to 103.72 billion yuan.

Coke prices up in Hebei, Shandong(2009/2/13)

Coke producers in Hebei Province decided to raise their ex-work prices by 50 to 100 yuan per ton to 1,800 to 1,850 yuan per ton (duty unpaid) in February owing to tight supplies and rising costs, according to the Hebei Coking Industry Association. Meanwhile, producers in Shandong also lifted the monitoring price of first grade metallurgical coke to 1,950 yuan per ton and that of second grade metallurgical coke to 1,900 yuan per ton from February 6.

Steel trade down in January(2009/2/12)

In January China imported 870,000 tons of steel products, down 550,000 tons or 38.7 percent year-on-year and 60,000 tons or 6.5 percent from last month while exporting 1.91 million tons, down 2.22 million tons or 53.8 percent from a year earlier and 1.26 million tons or 39.7 percent from last month. The country imported 130,000 tons of billet, up from 80,000 tons last month and hitting a monthly record since 2006; exported just 80,000 tons of coke, down 92 percent; and imported 32.65 million tons of iron ore, down 11.2 percent year-on-year and 5.4 percent from last month.

Railway infrastructure spending requires lots of steel(2009/2/11)

The infrastructure spending of the Beijing-Shanghai High-speed Railway will reach 60 billion yuan this year, which will consume two million tons of steel, 12 million tons of cement and create nearly 600,000 jobs. The 350 km railway will cut travel time to five hours between the two cities.

Steel industry faces grim outlook(2009/2/11)

Out of 19 listed steelmakers, Dalian Jinniu first announced its 2008 results. In 2008 the mill produced 412,700 tons of steel, accounting for 81.89 percent of its output in 2007; had a main business operating income of 3.41 billion yuan, up 0.13 percent; a main business profit of 218.64 million yuan, down 16.15 percent; a net profit of 26.91 million yuan, up 3.12 percent and an earning per share of 0.09 yuan. The mill plans to produce 464,000 tons of steel in 2009, 350,000 tons of steel products and have sales revenue of 3.4 billion yuan.
The mill expected a grim outlook in 2009 as the impact from the global financial crisis will be more serious than people ever imagined. Demand for special steel will shrink from most sectors except the military industry. Meanwhile, the export industry will be hampered by the depreciation of foreign currencies.

Coking industry tends to consolidate(2009/2/9)

China’s coking industry will defiantly experience massive consolidation as small and medium coking plants account for more than 80 percent of the industry and these plants have a scattered layout, a poor technology and management talent, are heavily polluted and lack of competitiveness. The possible mergers may appear in the following four methods.
1. Steelmakers consolidate their captive coking assets;
2. Steelmakers ally with independent coking plants;
3. Mergers are taken place among coking plants;
4. Coal miners consolidate with coking producers.

Steel industry losses 47.6 billion yuan in Q4(2009/2/9)

A source with the CISA said that 71 large- and medium- sized steelmakers lost up to 29.1 billion yuan in December, up 129 percent from November, with some big mills even losing 10 billion yuan each. The industry was expected to suffer a loss of 47.64 billion yuan in the fourth quarter of 2008 due to the decreased value of inventory. Analysts believe, however, the market is gradually recovering and mills are getting in a better shape in their profitability.
The source said an 80-day-long period rebound in the steel prices, which is rare in seven years, indicated a recovery in the market confidence. Besides, China’s daily crude steel output stood at 1.29 million tons in January 2009, compared with 1.22 million tons in December of last year, equivalent to a normal monthly output of some 40 million tons.

Liaoning to produce 42.5 million tons of steel in 2009(2009/2/5)

Liaoning Province plans to produce 42 million of pig iron, 42.5 million tons of crude steel, 43.5 million tons of steel products and 600,000 tons of ten non-ferrous metals in 2009. In 2008, the province completed an industrial added value of 137 billion yuan, produced 40.3 million tons of pig iron, 40.3 million tons of crude steel, 42.4 million tons of steel products and 590,000 tons of ten non-ferrous metals.

December steel output continues to slow(2009/2/4)

China’s crude steel output in December extended the minus growth for the fourth month in a row with a year-on-year drop of 10.5 percent, 1.9 percentage points lower than November; and steel products output was down 1.7 percent, 9.3 percentage points lower than the previous month, according to data from the Ministry of Industry and Information Technology website.

Dealers disturb steel market(2009/2/3)

China’s steel distribution market is confused as there are more than 100,000 dealers tending to follow the market’s ups and downs, a move that always intensifies the fluctuation in the steel market, said Shan Shanghua, secretary general of the CISA. He added the recent rise in steel prices had something to do with the pileups at dealer’s warehouses. Baosteel and Ansteel have set up new marketing policies, in which production is arranged in accordance with demand. This will help the mills improve their adaptability.

Steel market to maintain at low level(2009/2/3)

The Chinese Academy of Sciences forecast in its report that the country’s steel market will maintain a trend of low-supply and low-demand in 2009 and the price of steel will keep at a low level as a whole. The production of main steel products will slow in the first half of this year and grow faster in the latter half. The growth of domestic iron ore production will slow down with the price floating at a low level. The steel industry may end the sharp decline in profitability at the end of 2009.

China's steel producers forecast drastic net profits decline for 2008(2009/2/2)

BEIJING, Jan. 30 (Xinhua) -- China's major listed steel companies forecasted a huge drop in net profit in 2008, mainly due to the plunging steel price, according to the latest annual net profit forecasts.
China's Angang Steel Company Ltd. (Ansteel) reported an estimated 55 percent profit decline. Liuzhou Iron & Steel (Group) Company said annual net profit may drop 98 percent, and San steel Minguang Co. Ltd forecasted a 70 to 100 percent slump.
The weak performance mainly resulted from the shrinking market demand and price decline of both steel and raw materials, said there ports.
According to market data, price for secondary metallurgical coke dropped 50 to 60 percent from its highest point in the first half of 2008, while steel price dipped about 40 percent.
Chinese Academy of Sciences said domestic steel price will stay at a low level this year in a report on China's economic outlook in 2009 last week.
China's steel market will face both "shrinking supply and demand" in 2009, said the report. However, market demand will revive as the economic stimulus package took effect, and steel companies will see the end of profit decline at the end of 2009.

News Analysis: China's steel industry benefits from stimulus, support plan(2009/2/1)

BEIJING, Jan. 22 (Xinhua) -- Excess capacity, low industrial concentration and a lack of access to natural resources have long plagued China's steel sector. These problems have been exacerbated by the impact of the global financial and economic crisis.
When China's State Council, or Cabinet, approved a "rejuvenation plan" January 14 to support the troubled industry, the immediate aim was to deal with the effects of the crisis. However, analysts said, it could also ease the industry's long-term structural problems.
Since the plan was announced, construction steel prices have risen about 60 yuan (8.78 U.S. dollars) to about 3,650 yuan per ton in Beijing and Tianjin, according to Mysteel, a steel information service company.
Prices had been rising since the government's 4 trillion yuan economic stimulus package was announced in November.
From Jan. 14, when the industry package was announced after the market closed, and Monday, the Shanghai Composite Index rose 3 percent. Meanwhile, shares in the biggest steel producer, Baosteel, were up 2.5 percent while the No. 2 producer, Angang Steel, saw its stock rise 3.6 percent.
Chu Xueliang, an analyst with China Jianyin Investment Securities, said the support plans would help solve the persistent problems of excess capacity, low industrial concentration and a lack of raw materials.
FIRST, CUT CAPACITY
Analyst Rong Gang, of Langesteel, a steel information service, said China would consume about 500 million metric tons of steel, assuming the economy grows 8 percent this year. Last year's consumption was estimated at 451 million metric tons.
But capacity exceeded 650 million metric tons at the end of 2008, meaning producers were making too much steel even before the full impact of the crisis was felt.
Analysts believe the global crisis and its impact on China have yet to run their full course, and demand abroad for China's steel products remains weak.
They fear that even small signs of price recovery will prompt shuttered factories to resume production, which would exacerbate overcapacity and weaken prices again.
THEN, RESTRUCTURE
Low industrial concentration is another problem. China's steel sector is big but not strong.
Based on 2007 figures, Chu says, China's top 10 steel producers accounted for just 36.8 percent of the nation's total. The top five producers turned out about 20 percent.
By comparison, according to the International Iron and Steel Institute, the world's single largest producer, Luxembourg-based ArcelorMittal, produced 10 percent of the world's steel in 2006.
With more than 700 companies, many with extremely low output, China is the world's leading steel producer. According to the World Steel Association, in 2007 (the most recent year for which figures are available), China produced almost four times as much as the second-largest producer, Japan, and almost five times as much as the No. 3 producer, the United States.
China accounted for more than one third of 2007 global production.
RAW MATERIAL REMAINS PROBLEM
Something largely beyond China's control is its need for imported raw materials, such as iron ore. The only market power it has in this area is the power to negotiate with suppliers.
Leading steel companies such as Baosteel and Wuhan Iron and Steel each import about 70 percent of their iron ore. However, the huge number of small producers complicates negotiations with iron ore suppliers such as Australia, because the industry doesn't negotiate as a bloc.
NEW SUPPORT PACKAGE
The State Council announced support programs last Wednesday for the vehicle and steel sectors, two of the many industries for which the government is expected to announce specific support packages.
Chu said the steel industry plan includes eliminating obsolete capacity, speeding up innovation, promoting alliances and mergers and cutting export tariffs.
Regulations will favor larger, more efficient blast furnaces with a capacity of at least 1,000 cubic meters of ore. Those with capacities under 400 cubic meters should be closed.
Chu says about 100 million tons of obsolete capacity could be closed by this method, and he expects to see the impact show by 2010.
The government will subsidize loans of about 15 billion yuan to encourage technological upgrading and product rationalization to better meet demand.
Chu predicts China will eventually have six steel giants, each with an annual output exceeding 200 million tons as the support programs give companies a great opportunity to merge with or acquire other companies, which would increase industrial concentration.
Export tariffs on 67 steel products were scrapped Dec. 1 to ease pressure on exporters, according to the China Iron and Steel Association (CISA).
But Chu says industrialists are still hoping for further tax cuts, rebates or exemptions, and it is likely that some of these steps will be taken.
A UN report in December forecast the world economy would only grow 1 percent in 2009, 1.5 percentage points less than in 2008.
A slower global economy would mean reduced demand for steel -- not just in raw form, but also in motor vehicles and household appliances.
Faced with these multiple challenges, the CISA says steel producers must match production with demand and avoid below-cost exports.

MIIT calls for mergers among steel industry(2009/1/24)

The Ministry of Industry and Information Technology (MIIT) pointed out at a press conference that the central government’s policies aiming to expand domestic consumption and ensure a steady growth have taken an initial effect as there are signs of recovery in the steel, auto and chemical sectors. The growth of the domestic economy is expected to speed up in the second half of this year albeit a low one in the first half. The ministry stressed efforts should be done to eliminate backward capacity, boost mergers and consolidation among the steel, electrolysis aluminum, auto, cement, textile and tobacco industries, foster large enterprises with international competitiveness, deepen reforms on telecom system, support medium- and small-sized firms with preferential financial and taxes vehicles.

Mills face decreased vale in inventory(2009/1/23)

Anshan Iron and Steel reported a drop of 55 percent in profits and a preparation for falling inventory value of 1.81 billion yuan last year. Shandong Iron and Steel Group suffered a loss of 320 million yuan in October, 800 million yuan in November and 1.8 billion yuan in December with a whole-year profit of 3.5 billion yuan, down 62 percent from 2007. Other mills also recorded a decline of their net profits with some even at a loss.
Analysts say 32 listed steelmakers had a combined inventory value of 246.3 billion yuna in the third quarter of 2008 including 52.1 billion yuan in Baosteel alone and more than 10 billion yuan each in Tangshan Steel, Benxi Steel, Tisco, Wisco, Baotou Steel and Masteel. With the price of steel products and raw materials falling in the fourth quarter, the decreased value in mills’ inventory will be certainly topped 20 billion yuan.

mainstay sectors slide into a recession(2009/1/20)

Investigations showed apart from speculation activities dominated by the financial capital which boosted BDI index, the host of the Beijing Olympic Games also helped to inflate bubbles in the domestic ocean shipping, shipbuilding and steel industries. In order to avoid transportation limits during the games, many power stations, steelmakers once scrambled to buy in coal and iron ore stocks, a move that has deteriorated the current softening demand.
A great number of shipping capacity is idle because of few demand for cargos. Owing to a quiet market, Qinhuangdao port has so far piled up 9.4 million tons of coal in stock, approaching its limit capacity of 10.6 million tons.
With utilization rate slowing down, the price of corresponding products and raw materials slumped. As of December 2008, the price of steam coal on 5,500 kcal, imported iron ore from Australia and flat products in Qinhuangdao port dropped to 600 yuan per ton, 600 yuan per ton and 3,200 yuan per ton respectively from the peak of 1,100 yuan per ton, 1,600 yuan per ton and 6,500 yuan per ton in July 2008. The recovery in the three bolstering sectors, steel, coal and power, still has a long way to go despite a 10 percent rise in the prices compared with November.

China to explore overseas mineral resources(2009/1/19)

China will encourage domestic enterprises to take part in developing overseas resources projects mainly on oil, nature gas, iron, nickel, chrome, manganese, aluminum, copper and sylvite, according to a National Mineral Resources Program (2008 to 2015) released on January 7. The global financial crisis has beaten down the prices of mineral products and provided a chance for Chinese firms to involve in the international mineral resources exploration.

China unveils support package to auto, steel industries(2009/1/16)

BEIJING, Jan. 14 (Xinhua) -- China's State Council unveiled a long-awaited support package for the auto and steel sectors Wednesday to boost the two "pillar industries".
Under the plan, the government will lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent from Jan. 20 to Dec. 31 in a bid to stimulate sales.
It will also allocate 5 billion yuan (730 million U.S. dollars) to provide one-off allowances to farmers to upgrade their three-wheeled vehicles and low-speed trucks to mini-trucks or purchase new mini-vans under 1.3 liters from March 1 to Dec. 31. It will also increase subsidies for people to scrap their old cars and will straighten out and cancel regulations that restrict car purchase.
The plan encourages large auto companies, as well as major auto-part makers to expand through mergers and acquisitions so as to optimize resources and improve their competitiveness on the international market.
In the next three years, the central government will earmark 10 billion yuan as a special fund to support auto companies to upgrade technologies, and develop new engines that use alternative energies. The government will offer financial support to promoting the use of energy-saving autos and those fueled by new energies, and support automakers to develop independent brands and build auto and parts export bases.
The plan also urges improvements in the credit system for car purchase loans. More than 93 percent of Chinese vehicles are sold in the domestic market, but less than 10 percent are purchased on credit.
It also requires accelerated upgrading of the steel sector, transforming "big" industry competitors into "strong" international players.
It said the industry needed to eliminate outdated technology, and must not establish new projects that merely add to steel output.
China also needed to increase domestic demand for steel and adopt a more flexible tax rebate policy to keep international markets.
Special funds will be allocated from the central budget to promote technological advancement of the sector, readjustment of products mix and improvements of product quality, according to the plan.

Steel revitalization program released(2009/1/16)

The outline of a steel revitalization program was released by the Ministry of Industry and Information Technology. The program involves seven contents including speeding up structural adjustment and enhancing competitiveness, technology updates, ensuring a steady and orderly market, controlling gross output and eliminating backward capacity, adjusting import and export duties, improving standards on construction steel, using more homegrown steel in the shipbuilding and auto industries as well as lending more money to steel producers.

10 million tons of pig iron capacity to be eliminated by 2009(2009/1/15)

After a year’s effort, China added 12.8 million tons per day of sewage water treatment capacity, surpassing the target of 12 million tons set in 2008; 86 million kilowatts of coal de-sulfurizating facilities, 2.9 times the planned target; shut off 16.69 million kilowatts of small thermal powerhouses, 1.3 times the planned target and eliminated backward capacity in the paper making, cement, iron making, coking, ethanol, monosodium glutamate and citric acid sectors.
In 2009 the country will add 10 million tons of daily sewage water treatment capacity, more than 50 million kilowatts of de-sulfurizating facilities at thermal coal powerhouses and 20 units of gas de-sulfurizating facilities at sintering plants.
China will also eliminate 10 million tons of pig iron capacity, six million tons of steel capacity, 500,000 tons of papermaking capacity and 15 million kw of electricity power this year.
　

First batch of coke export quotas under general trade in 2009 unveiled(2009/1/12)

The Ministry of Commerce released the first batch of coke export quotas under general trade in 2009 in light of the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods on its website for public supervision.
Contact：Industrial Products Export Office of the Foreign Trade Department
Tel：010-65197407/65197729
Fax：010-65197434
E-mail：wm_gongyepin@mofcom.gov.cn
Table of the first batch of coke export quotas under general trade in 2009

Hebei Steel further consolidated(2009/1/4)

Tangshan Steel, Handan Steel and Chengde Vanadium and Titanium, three listed arms of Hebei Iron and Steel Group, jointly announced a share swap plan, in which Tangshan Steel will absorb shares in Handan Steel and Chengde V&T at a conversion ratio of 1:0.775 with Handan Steel and 1:1.089 with Chengde V&T. The merged company will have a crude steel capacity of more than 30 million tons per year, the biggest steel producer in China by output.
Tangshan Steel mainly produces continuous billet and hot rolled narrow strip at stainless steel operations. It produced 2.75 million tons of pig iron, 2.35 million tons of crude steel and 2.57 million tons of steel products in 2007.
　

China mulls ways to perk up nine sectors(2008/12/29)

Relevant authorities should find ways to help boost the steel, auto, ship, petrochemical, textile, light industry, non-ferrous metal, facilities manufacturing and IT sectors, said Zhang Ping, director of the NDRC, in a report to the Standing Committee of the National People’s Congress. The global financial crisis has brought five impacts on China’s economy: 1. Export and investment growth slowed; 2. Industry production slowed and raw material prices and demand from the transportation sector declined; 3. Property and auto markets remained dull; 4. Business environment got worse and employment situation was not optimistic; and 5. The growth of fiscal revenues eased and potential financial risks emerged.
In order to cushion the crisis, the central government has worked out ten measures to expand domestic demand and secure a steady and fast development of the economy.

Iron ore stocks at ports slumped(2008/12/26)

Like Tianjin port, iron ore stocks at Rizhao port, mostly imported from Australia, India and Brazil, declined largely because an increasing number of mills in Shandong, Shanxi, Henan, the south part of Hebei and Shaanxi have restored production with a marginal profit. The government four trillion yuan stimulus package may also have contributed to the rising demand for iron ore. Iron ore price once dropped to 700 yuan per ton from 1,600 yuan per in August but has climbed to 810 to 820 yuan per ton since mid-November.

Many mills to raise prices earlier next year(2008/12/25)

 Shagang, Shougang and Benxi Steel have raised steel prices for January production with more confidence in the future steel market. Shagang is offering a booking price of more than 3,500 yuan per ton in January and will reduce a deposit to 300 yuan per ton from 400 yuan. Shougang is offering a price of 3,550 yuan per ton and Benxi Steel 3,603.6 yuan per ton.
However, experts say demand from end-users remains dull in a quiet market. Many buyers haven’t managed to prepare for winter storage and are sitting out of the market. The market will be running short of momentum later.

China may launch steel futures soon(2008/12/24)

 China may launch steel futures after the Spring Festival with wire rod as the first variety to be traded. Wire rod, rebar and hot rolled coil are currently being traded on the Shanghai electronic exchange market with coil’s daily transaction ranging from 100,000 to 200,000 tons. The country produced 80.38 million tons of wire rod and 101.37 million tons of rebar in 2007. The debut of the steel futures will help control risks and strengthen supervision.

China to support 9 crisis-stricken industries(2008/12/23)

 BEIJING, Dec. 19 (Xinhua) -- China must take more powerful and effective policies to support industrial development, the country's vice premier Zhang Dejiang said at a work meeting concerning national industry and information technology on Friday.
"A stable and rapid industrial development is essential to the country's overall economic advance," Zhang said.
China plans to initiate a policy package in the coming new year to revive nine industries heavily hurt by the unfolding global financial crisis, the Ministry of Industry and Information Technology (MIIT) vowed at the meeting.
The nine industries to receive national support include light industry, textile, steel, non-ferrous metal, automobile, petrochemical, ship-making, electronics and telecommunications.
"China will resort to tariff and trade policies to facilitate export of labor-intensive and core technology-supported industries, and encourage domestic companies to conduct overseas merger and acquisition," MIIT minister Li Yizhong said.
Li stressed the importance of adhering to the country's opening up policy amid international market contraction and emerging trade protectionism.
While supporting domestic companies to tap the international market, Vice Premier Zhang also urged to improve the country's investment environment.
Other major favorable policies to prop up the nine industries include carrying out sound value-added tax reform, setting up special funds to support technological innovation, expanding bank loans especially to small and medium-sized enterprises and increasing government procurement and reserves of major raw materials.
Policies to boost auto development and consumption are also being mapped out, according to Li.
Li urged local industry and information technology officials to work out specific regulations and ensure the effectiveness of these policies.

Liaoning has closed 452 small iron and steel plants in 2008(2008/12/22)

Blast furnace iron melting is the most important way of producing iron in modern industry, accounting more than 95% of the whole production in the world. As an important part of iron and steel production, blast furnace iron melting is developed from ancient shaft furnace iron melting. Though many new methods were developed, blast furnace iron melting survives and develops for its good technological and economic indexes, simple process, large production, high efficiency and low energy consumption.
Blast furnace production is continuous, and a generation of a blast furnace, since launching operation to stop production, could keep on operation for several to tens of years.
Yesterday, Liu Guoqiang, vice stadholder of Liaoning Province revealed the process of energy saving and emission decreasing work in the province, when he attended the ceremony for Bengang to close two blast furnaces.
“The shutdown of No.1 and No. 2 blast furnace has a great effect, as the two furnaces used to produce the famous ‘gen-seng iron’ that has a low sulfur and phosphor and impurity content, while has a good mechanical performance. Till now, Liaoning has closed 452 small-sized iron and steel companies and 80 cement plants and other high pollution and high energy consuming companies.”
“In 2008, Liaoning demolished 14.00 million tons of outdated capacities. But the province will still work on these capacities, while strict the standards for new projects, leading the heavy industries in Liaoning to a better development.” He added.

Over half of steel facilities in Tangshan back to operations(2008/12/12)

More than half of steelmakers in Tangshan have resumed operations since November. As of December 8, the ratio of idled capacity declined to 28 percent from 58 percent in September and October.
Tangshan Guofeng Steel began to trim output in August under the influence of the global financial crisis and only opened 2 out of the 10 blast furnace at the worst time. Hebei Iron and Steel Group also cut output by 20 percent. With the prices of iron ore concentrates and coke leveling off, Guofeng reopened three furnaces in early November and the number of operating facilities was increased to eight in mid-November. Hebei Steel also resumed full capacity after receiving a 1-million-ton order from the Ministry of Railways.
Experts say the overcapacity in the steel industry will continue for a while as the downstream construction, auto and machinery sectors remain slow and domestic new steel capacity is releasing.

Iron and steel companies in Qian’an Hebei Province resume production(2008/12/8)

When the finance crisis sourced from USA came to spread in the world, some of the iron and steel companies in Qian’an City of Hebei Province was influenced. But, since the central government carries out an economy stimulating policy and local companies have taken effective measures to deal with the crisis, iron and steel companies in Qian’an resume production one after another. Till 22nd Nov, 20 out of the 33 blast furnaces in Qian’an have resumed operation, and 16 out of the 25 converters and 8 out of the 13 rolling production lines have been back to production, especially those facilities with a larger capacity. Now the price fro billets has increased to 3,050 Yuan per ton, up by 7.02% from recent low of 2,850 Yuan per ton.
The iron and steel market was strong in the first half of this year, but it became weak since the later part of July to the end of Oct, due to lower demand in domestic market that was influenced by the finance crisis. During that period, the idled facilities in iron and steel companies in Qian’an reached 50% to 60%, even 70% of the capacity. And some of the operational facilities didn’t run at full scale. Due to the weak demand, the billet price once came down to 2,850 Yuan per ton, down by 48.65% from the peak of 5,550 Yuan per ton in April.
Entering Nov, as the steel consumers and the stockists needed to restock, the demand in market revived. On the other side, the high-priced raw materials in iron and steel companies run out, and producers could maintain profit with the materials of lower costs. As idling facilities still costs, it is payable to keep production, especially when the central government carries out demand-enlarging and economy-stimulating policies, and canceled export tax for some products, providing an improved environment by reducing burdens on the producers. The effect of macro policies needs a time, but it will be helpful in a long term, and help the recovery of market confidence. In this connection, the iron and steel market shows signs of recovery.
Spurred by the 4 trillion Yuan investment plan, the market may revive, and the 100 billion Yuan expenditure plan will improve the demand for iron and steel products in Dec, and help reduce the pressure from stock. With the improving confidence in iron and steel market, the prices for iron and steel products will be firmer by the end of 2008, and the profit of those companies may increase by 10%.

Iron ore price talks delayed on dim outlook(2008/12/1)

Iron ore price talks for 2009 between the Chinese side and the three leading miners have yet kicked off. Mills started to cut output from September of this year. The spot price of imported iron ore has been 30 percent lower than annual contract in the past two months. It is too early to tell where the iron ore market will head for as the central government has not unveiled macro regulatory policies for next year. The annual contract price would fall 30 percent if settled down at the end of this year and the decrease rate will be smaller if the talks extend into next year, foreign media forecast.

Credit Suisse ：Steel output recovery may cause iron ore supply shortage by 2012(2008/11/28)

If China’s steel output returns to the previous level spurred by the economic stimulus plan, the global iron ore market would face a supply shortage in 2012, according to Credit Suisse. The iron ore market is currently keeping balanced after miners in Australia and Brazil announced plans to cut output. China’s steel output will grow at a pace of 5.5 percent annually from 2012 and per capita iron ore consumption will increase to 600kg to 650 kg from currently 450kg to 500 kg.

Steel price continues to drop on overcapacity(2008/11/24)

It will take three to six months that the central government’s four trillion yuan package could play a role in the steel market. Therefore, steel prices are unlikely to recover by the end of this year.
Steel price fell 2.7 percent last week, going down 0.9 percentage point further over the previous weak, according to data released by the Ministry of Commerce. The average steel price in October stood at 4,739 yuan per ton, down 16.4 percent from September and lower than that during the same period of last year.

Coking and steel industries manage to tide over tough time(2008/11/24)

Coking plants in Shanxi and steelmakers in North China agreed to sign long-term cooperation agreements to tide over the current tough time. The agreements include: Both sectors build long-term coordinated mechanisms; senior executives from the two sectors hold regular meetings to exchange views on the market situation; a monthly monitoring price for the coke market is necessary and coking plants should guarantee a steady supply and quality of coke for the steel industry; steelmakers should make timely payments in accordance with contracts.

Steel prices continue downward trend(2008/11/21)

Domestic steel prices will continue to drop in the short run due to weakening demand from downstream sectors and high steel inventory. Steel price fell 2.7 percent last week ending November 16, going down 0.9 percentage point further over the previous weak. The average steel price in October stood at 4,739 yuan per ton, down 16.4 percent from September and lower than that during the same period of last year.
The steel market is expected a weak fundamental in 2009 but may recover at the end of 2009 or 2010.

China’s steel exports drop to 4.62 million tons in October(2008/11/19)

Customs data showed that China exported 4.62 million tons of steel products in October of this year, down 2.05 million tons from September, and it imported 1.15 million tons of steel products, with a net steel product export of 3.47 million tons.
The country exported 110,000 tons of billet and 530,000 tons of coke in October, and imported 20,000 tons of billet and 30.62 million tons of iron ore, down 8.58 million tons from September and up 2.86 percent year-on-year.
From January to October, China exported 53.12 million tons of steel products, down 1.2 percent with an export value of $55.6 billion, up 49.8 percent; imported 13.47 million tons, down 5 percent, with a net steel product export of 39.65 million tons. It also exported 12.4 million tons of billet in the first ten months, down 79.8 percent and 11.58 million tons of coke, down 12 percent, with the coke export value of $5.53 billion, up 123.4 percent, while imported 150,000 tons of billet, down 24 percent; and 376.69 million tons of iron ore, up 20.2 percent, with an import value of $53.3 billion, up 108.7 percent.

Mining projects hit by financial crisis(2008/11/14)

Mining projects are finding it more difficult to secure funds as many sectors have been caught up by the financial crisis, a senior official from IFC said at the China Mining Expo. The mining industry should draw three lessons from the current financial upheaval.
1. The business cycle of bulk commodities should be taken into consideration.
2. It is difficult to predicate a short-term price movement in the process of an economic downturn.
3. Investors and governments should be reminded that the driving force of the mining investment depends on minerals’ quantity, location, existing items and public infrastructure.

Capital goods price marks 17th week slide(2008/11/14)

The price of specially monitored capital goods in 36 cities across China dropped 1.3 percent last week ending November 9, according to a forecast from the Ministry of Commerce. The price of chemical products, energy, ferrous metal, farming materials, construction materials, rubber and light industry raw materials dropped, while that of minerals and non-ferrous metal rose. The price of 0.5mm non-oriented silicon steel fell 8.4 percent, while that of iron ore climbed 3.7 percent.

Outdated capacities in high energy-consuming industries in Qinghai will be washed out by 2010(2008/11/13)

According to Several Political Measures for Boosting the Washing out of Outdated Capacities and the Upgrading of Industries issued by Qinghai provincial government, by 2010, Qinghai will demolish all the outdated capacities in high energy-consuming industries. In the recent years, the capacities in some high energy-consuming industries grew rapidly, and the problems of dispersed industry, inefficient use of energy and environment pollution became series. In this connection, Qinghai issued the Measures.
According to the Measures, Qinghai will stop giving approvals to these projects of ferroalloy, silicon carbide, calcium carbide and other high energy consuming and high emission industries, leaving all such projects to be determined by provincial investment management offices. And the existing outdated capacities will be recorded under a completely survey, and then be demolished. Besides, Qinghai will compensate the companies who cut outdated capacities, while increase the prices for electricity and limit the land supply to these capacities.
Meanwhile, the Measure encourages companies of high energy consuming industries to take the remaining heat, and to improve the efficiency through technology upgrading and innovation.

Tangshan to expedite steel merger(2008/11/12)

In order to implement the spirit of the 4th Plenary Meeting of the 7th Hebei Provincial Committee, the Tangshan government will resolvedly boost structural adjustment and energy-saving efforts, expedite merger and consolidation in the steel industry, promote a shift of finished product from construction steel to equipment steel, develop premium strip and sheet, high quality wire rod, brand steel and H sections, improve added value, establish steel futures transaction base and speed up construction of Shougang Jingtang Iron and Steel Plant.

The iron mine projects under construction in China have a capacity totaled 120 million tons(2008/11/11)

According to Zou Jian, chairman of Metallurgical Mines' Association of China, there are 17 iron ore projects under construction in China at present, and the capacity totals 120 million tons. These projects are to launch operation in next 2 to 3 years.
Among these, several projects have a capacity of 10 million tons or more, including Taigang’s Yuanjiacun Iron Mine Project (22.0 million tons), Phase Two of Tanggang’s Sijiaying Iron Mine Project (15.0 million tons), Anhui Huoqiu Iron Mine Project (14.50 million tons) and Baogang’s Baiyun West Mine (10 million tons). Besides, Magang’s Luohe Iron Mine Project has a capacity of 5.0 million tons, and Shougang’s Xingshan Iron Mine Project has a capacity of 4.0 million tons.
According to Zou Jian, the global finance crisis hit the iron and steel industry in China, and slowed the growth in production; therefore the increase in iron ore production in China could meet the growth of iron and steel capacity. The oversea iron ore and ocean freight market will see an end to the period of incredible high profitability but maintain a considerable profit due to the monopoly in supply. From the end of 2008, the iron ore price will gradually become stable.

Mills’ profitability undermined by ailing demand(2008/11/10)

Listed steelmakers saw a year-on-year drop of 6.15 percent in their gross profit in the third quarter of 2008 and a 45.9 percent drop from the second quarter. Mills’ profitability will be further hit in the following two months due to low demand and high inventory in the domestic market.
Analysts attributed the drop to ailing demand. Listed mills’ profitability was better than the industry average and small sized mills were more flexible in cost control than larger ones.
Among the listed mills, flat producers saw a smaller drop of less than 50 percent in profit than that in long producers, who experienced more than 50 percent decline as a whole.
The World Steel Association expressed full confidence in a higher growth of demand for steel than that of GDP in 2009 at the 42nd annual meeting held on October 6, but didn’t make forecast on the worldwide steel market as usual. Sources from the meeting predicated a two to three percent growth in next year’s steel demand, much lower than 2007 and 08.
The growth in the real estate sector, which accounts for 36 percent of total steel consumption, is expected to be zero in 2009; that in the auto sector, which accounts for 4 percent, is estimated at decreased 5.16 percent, lower than 12 percent and 32 percent in 2008 and 07 respectively.

CCIA warns tough time next year(2008/11/7)

The China Coke Industry Association (CCIA) president Huang Jingang said recently that the industry may experience a tough period next year at a time when exports are curbing and investment on real estate remains unclear.
Demand for coke has sharply dropped since July and the price continued downwards for the 3rd month. On the other hand, the price of coking coal is still strong. The coking market meets an acute shortfall of funding.
He added coke plants should control gross production, keep production in pace of demand as well as combine gross amount control with structural adjustments, backward elimination with production cuts and limits and maintenance with production cuts and limits.

Buyers to gain more bargaining power(2008/11/5)

Representatives of mills from China, Japan and Europe will kick off annual iron ore price talk for 2009 in November with the world’s three largest suppliers.
Buyers seem to have gained more bargaining power with mills cutting output amid a weak global economy. As of last week, Chinese iron ore stocks at ports have amounted to 71.92 million tons, up 360,000 tons from the previous week. The CISA vice president Luo Bingsheng pointed out that iron ore inventory in some mills has reached four months.
However, Brazil’s Vale has not changed its $14.2 billion expansion plan next year, claiming China’s demand would rebound in the middle of 2009. Rio Tinto also said the weak demand from China is just a temporary phenomenon as the country will maintain an annual growth rate of 8 to 9 percent. UBS has revised its earlier forecast of a 15 percent drop in 2009 iron ore contract price to 40 percent.

Jining Iron Mine has a reserve of more than 10 billion tons(2008/11/4)

An ultra large iron mine was found in Yanzhou, Shandong Province, but the reserve of the mine, and the grade of iron ore of this mine was revealed recently. What will this discovery do to the iron and steel industry in Shandong, and even in China?
Huang Tailing, deputy director general of Shandong Provincial Bureau on Geology and Mineral Resources, said: “Jining Iron Mine has an estimated reserve of no less than 10 billion tons, the largest iron mine in Shandong till now, and one of the major iron mines in China. Now a land of about 8 square kilometers is under exploration. 17 holes with a depth of more than 1,000 meters will dig, to study the thickness, depth and shape of the orebody through the rock core. ”
Based on the exploration report, the iron ore in this mine has an average iron content of 25.97% to 31.72%. In this connection, the grade of iron ore of the mine is low, but, as the mine has an ultra large reserve, and the mine is a magnetite mine, Jining Mine is worthy mining.
The mine can serve the iron and steel companies in Shandong for 50 years
It is reported that the iron and steel production in Shandong Province totaled 30 million tons per year or so. Estimating that the mine has a reserve of 10 billion tons, and the iron content averages 20%, Jining Mine can serve iron and steel companies in Shandong for 50 years. According to Huang Tailing, the iron and steel companies in Shandong are largely dependent on imported iron ores, and they have a weak tone on price negotiation for iron ores. Having this mine, the consumers in Shandong, or even in China, will be more independent when importing iron ores.
Laigang has a priority on ores purchase
In the 90s of 20th century, the center government of China opened the mine exploration and mining to other economic sectors. As to Jining Mine, several investors has involved in this project. The development of Jining Mine will be funded by the central government, Laigang and so on, and the profit will be divided according to the shareholdings. Besides, according to the contract, Laigang has a priority on ores purchase. But due to that the mine is under exploration, the iron ores distribution is not decided yet.

Inner Mongolia stops construction of calcium carbide and ferro alloy projects(2008/10/30)

According to economy commission of Inner Mongolia Autonomous Region, the government ordered calcium carbide and ferroalloy projects to stop since 20th Oct. According to the Notice of Securing the Target on Energy Saving for 2008 by People’s Government in Inner Mongolia Autonomous Region, local government issued the order, in order to regular the development of calcium carbide and ferroalloy industries and avoid the repeat construction. According to the notice, the projects with main facilities (submerged arc furnace) not constructed will be suspended, and projects that have licenses or approvals but haven’t broken ground should stop construction, and government will stop giving approvals to those new projects.

Many smaller mills shut down in Hubei(2008/10/29)

Hit by slumping demand from the steel market, Wu Junyuan, chairman of Wucheng Steel, had no choice but declare a complete suspension of its 20-year-old steelwork on October 22. As of the same day, the mill has had an inventory of 28,000 tons, equal to tens of million yuan in profit. In September, there was an average loss of 2,000 yuan to sell one ton of steel.
Wucheng Steel is not an exception in Hubei. Most of the 10-odd small-sized steelworks each with a capacity ranging from hundreds of thousand tons to less than one million tons in the province have shut down, with one or two still running but at a low rate of less than 20 percent.
Echeng Steel, a middle-sized mill affiliated with Wisco, also will find it difficult to reverse a money-losing position if the market continues a weak trend. The mill has had some 100,000 tons in stock to date.

Xinjiang cracks down small metallurgical plants(2008/10/28)

The government of the Xinjiang Uygur Autonomous Region held a meeting on October 22 to overhaul local small-sized metallurgical plants. The region dispatched five inspection teams to check and oversee smaller metallurgical plants in 14 cities and prefectures in late September. And to date, the government has shut down 65 out of the 121 smaller metallurgical plants, with 30 whose facilities had been scraped.

A third of ferroalloy plants halt in Sichuan(2008/10/28)

“The difficulties that steelworks are confronting with are spreading to the ferroalloy industry,” according to sources with the Machinery, Metallurgy and Construction Materials Department of the Provincial Economic Commission of Sichuan. “Mills are now reluctant to buy ferroalloy due to the financial turmoil-triggered falling prices of steel. Accordingly, a third of ferroalloy plants in Sichuan are said to have been shut down.
Chuantou Etie produced 83,000 tons of ferroalloy in the first half of this year, had sales revenue of 750 million yuan, up 63 percent and a profit of about 36 million yuan. Entering September, however, the price of ferroalloy has dropped to 9,000-odd yuan per ton from the record of more than 14,000 yuan per ton. The plant’s inventory has reached 4,000 to 5,000 tons until recently.

Huang Jingan: the increase in future production of coke may be 4% to 5%(2008/10/27)

According to Huang Jingan, chairman of China Coking Industry Association (CCIA), due to a weak demand, the export price for coke declined by large content, and the profit of producers decreased considerably. He expected that the export of coke from China in 2008 may be 12.00 million tons to 13.00 million tons, down from 15.00 million tons in 2007.
Due to that the coke demand from steel producers dived, the price for coke in domestic and international markets declined. Now the price for second grade coke is RMB 2,000 per ton, down from RMB 3,000 before, more than 30% decrease. Some small coking plants were closed, and large and middle sized plants cut production. “Most independent producers have cut production by 40% to 50%. The situation is tough, and the profit of producers is decreasing. Due to the increasing demand and high production costs, coke price will maintain high, but the profitability will be hit ” he said.
In June, the coke production in China recorded at 1.04 million tons (new record on monthly production), but the production gradually decreased after that, especially the first half of October.
Meanwhile, Huang Jingan pointed that the decline in coke prices is not usual. And he estimated that the growth of coke apparent consumption in China would slow down, maybe to below 10%, and the import of coking coal in China would be 6.00 million tons, down from that (6.20 million tons) of 2007. “The increase in coke production in 2008 may be below 10%, and that for the future may be 4% to 5%, down from 20% in 2003 to 2005 ” Huang Jingan said.

New round of recession looms over mining industry(2008/10/24)

The Ministry of Land and Resources released in a report that the prices of mineral that had been soaring since 2003 has entered a new round of recession since the third quarter of 2008, and this trend will continue for a while.
China has reduced its reliance on many key minerals to be imported from the overseas market, with the development of domestic resources in recent years. China’s reliance on imported iron ore declined to 51.7 percent in 2007 from 56.7 percent in 2005. The figure is expected to drop further in 2008.
The country’s resources strategy is to guarantee a moderate growth of oil production, a massive growth of gas output and a stable supply of coal. China should try to guarantee more than 40 percent of domestic oil consumption and more than 80 percent of gas consumption, promote a balance in the coal market and further develop uranium ore for nuclear energy.
Meanwhile, China should reduce the dependence on imported non-energy key minerals and improve the influence in the international mineral markets.

Wisco of China signed cooperation agreement with Posteel of South Korea(2008/10/23)

On 15th Oct, International Economic and Trading Corporation of Wisco signed a long term cooperation agreement with Posteel of South Korea. Based on the agreement, petroleum pipeline steel and other materials of high value added and high technology from Wisco will through Posteel enter Middle East.
Facing a tough situation in international market, the trade company of Wisco tries different ways to sell steel products. Learning that Posteel needs to purchase steel products from China for the oversea projects, Wisco tracked the POS-JKLLC Project in United Arab Emirates and GIPI Pipe Line Project in Oman, in order to win the steel supply contract for those projects.
The agreement will secure Wisco the contracts of medium plate and petroleum pipeline steel with Posteel, which will be used for petroleum tank project in UAE and ERW oil transportation project in Oman, helping Wisco expand the share in international high grade steel market.

Shanxi to eliminate 15 million tons of steel capacity this year(2008/10/22)

Shanxi Province announced on October 17 a name list of more than 300 local plants with outdated facilities to be scraped this year. Those plants involve in seven industries including steel, coking, electricity, calcium carbide, ferroalloy, cement and papermaking. More than 100 plants on the list come from the steel industry with over 15 million tons of outdated capacity to be eliminated, which could reduce 480,000 tons of dust emission each year. More than 70 come from the coking industry, six from electricity, 23 from calcium carbide, 15 from ferroalloy, 40 from cement and 14 from papermaking.
Nine plants locate in Taiyuan City, including six steelmakers, two coking plants, one power plant and one calcium carbide maker.

Spot iron ore prices lower than benchmark(2008/10/20)

The spot iron ore price tumbled recently after more steel mills joined the production cuts in the face of the worldwide economic recession. Indian fines grading 63.5 percent fell below $85 per ton in mid-October, down nearly 60 percnet from the peak in March of this year. It's the first time in seven years that spot price was lower than the contract price of $89 per ton for Australian fines grading 62 percent on FOB basis.
Sliding imported ore price has also weighed on the prices of domestic concentrates, which dropped to $101 per ton in Tangshan, Hebei. The primary cause is a weakening demand brought by steel price downslide. The domestic steel price has skidded 30 to 35 percent after the Olympic Games. As a result, steel mills started to slash output from October.
Four big steelmakers, Shougang, Hebei Iron & Steel Group, Anyang Steel and Shandong Iron & Steel have agreed to cut production by up to 20 percent until the end of this year in an effort to fight falling steel prices.
Domestic iron ore supply maintained a modest growth while foreign supplies appeared to be plentiful. Falling freight rates and higher ore stockpiles at Chinese ports also put the market under further downward pressure.
　

UBS: steel output may drop 11 percent in October(2008/10/17)

UBS predicated that China’s steel output may drop five million tons, or 11 percent, in October and pig iron output may dip 5.5 million tons unless demand for steel starts to rebound. It implied that demand for iron ore in the month will decline 8.8 million tons and that for coking coal will fall 3.5 million tons. Smaller mills moved to adjust what they paid for spot raw materials as early as August.

New round of iron ore price negotiation warms up(2008/10/16)

The 8th China International Steel Raw Materials Forum will take place on October 23 and 24 in Qingdao, which is deemed as a warm-up for the new round of iron ore price negotiation.
Attendees of the forum will include representatives from Ansteel, Japan’s JFE Steel and Australia’s new iron ore supplier FMG. The themes cover the production and strategy of major iron ore suppliers at home and abroad, new projects in the overseas markets, latest progress concerning mergers and consolidations among steelmakers and miners, domestic mills’ strategy on overseas investment, ocean shipping market and interaction from the global iron ore trades.

Profit margin further squeezed in Q3(2008/10/16)

Insiders forecast that the net profit of steelmakers will drop about 40 percent in the third quarter of this year and the situation in the fourth quarter may be worse. In September, the price of ordinary wire fell 1,130 yuan, or 19 percent, from early this year; that of rebar slid 830 yuan, or 14.4 percent; and that of hot rolled coil was down 880 yuan, or 14.3 percent.
During the week ending October 10, the price of construction steel dropped 10.35 percent; that of medium plate down 12.75 percent; that of cold rolled down 9.63 percent; and that of hot rolled down 16 percent. The weekly price index saw the deepest decline of roughly 12 percent since 2000.
The steel industry may face a severe cold with the global financial crisis going on, coupled with an acute shortage in consumers’ confidence.

Steel mills in Hebei take the lead in production cuts(2008/10/16)

Hebei Iron and Steel Group held a working conference with its five subsidiaries including Handan Steel, Tangshan Steel, Xuanhua Steel, Wuyang Steel and Chengde Steel on October 9. The group decided to further cut production by 10 to 20 percent in addition to the current output slash by 20 percent.
Earlier, Hebei Iron and Steel, Shougang, Jinan Steel, Laiwu Steel and Anyang Steel have reached a consensus to slash the output by roughly 20 percent.
The global financial crisis, slowing business in the downstream real estate, auto, machinery and home appliances sectors and higher inventories at various mills are believed to be the reasons for steel producers to cut output.

Domestic steel prices continue to slump(2008/10/15)

Domestic steel prices plunged about 12 percent on average during the week ending October 10, with the prices of construction steel, medium and heavy plate, cold rolled steel and hot rolled steel dropping 10.35 percent, 12.75 percent, 9.63 percent and 16 percent respectively.
As of October 10, the price of 5.5mm hot rolled sheet/coil averaged at 3,867 yuan per ton in 10 key cities of the country, down 734 yuan per ton, or 15.96 percent, from the week prior to the National Day, that of 20mm averaged at 4,550 yuan per ton, down 665 yuan per ton, or 12.75 percent; that of 1.0mm cold rolled sheet/coil was 5,264 yuan per ton, down 561 yuan per ton, or 9.63 percent.
The construction steel enjoyed the best business performance, bolstered by the resumption of some construction sites and relatively slowing growth of new capacity.
Experts have linked the recent price dive with a severe lack of confidence, high levels of stock, poor sentiments for the macro economy and an increased panic amid slumping stocks and futures markets around the world.

Global steelmakers cut production in sagging market(2008/10/14)

Russia’s major steel producer MMK announced yesterday a plan to cut 15 percent of output and lay off 3,000 employees, or 10 percent of its total faculty, from October to cope with a plunging ferrous metal market stemming from the worldwide credit crunch. Earlier, China’s top mills like Baosteel and Shagang were considering production limitation plans following moves to cut 20 percent of output by steelmakers in Hebei including Hebei Iron and Steel, Shougang, Jinan Steel and Anyang Steel.
The previously robust steel industry has been hit by both upstream and downstream sectors since June. There is an increasing possibility of merger between BHPB and Rio, while weak demand has occurred in the real estate, home appliances and auto industries. The worldwide move to cut production may last for 1.5 to 2 years as the revival of the industry is subject to the recovery of the global economy, which is generally expected in one or two years.

MOC predicts further drop in iron ore prices(2008/10/13)

The Ministry of Commerce forecast that the prices of steel products and iron ore in China will continue to drop, while insiders predicted a possible return to normal levels in the iron ore market. As of the end of September, the domestic iron ore price was 1,200 yuan per ton on average, down 12.4 percent from August. A tumble in freight rate has dragged down the prices of iron ore. On September 26, the price of Indian iron sand with 63.5 percent Fe content was being offered at 1,000 yuan per ton delivered at Tianjin port, down 23.1 percent from August.

Shanxi to set iron ore futures (spot) market(2008/10/10)

Rich in coal resource, Shanxi wants to develop iron ore trading business with Brazil and looks forward to setting up an iron ore futures (spot) market in Shandong, home to Qingdao and Rizhao ports together with an annual iron ore throughput of 135 million tons, accounting for over a third of the country’s total iron ore throughput.
The idea came after Brazil expressed last year that it would increase steel capacity to 66 million tons a year in 2012 from 31 million tons in 2010, which will require at least 17 million tons of coking coal as raw material. Shanxi accounts for 50 percent of the worldwide coking coal market and China exported 28 percent of its coking coal output to Brazil last year.
Setting up such a market will help Chinese players enhance their influence in overseas annual iron ore negotiations as well, said Li Zhen, director of the Economic Academe under the Provincial Development and Reform Commission of Shanxi.

Chinese opposition mounts to BHP-Rio(2008/10/8)

The proposed $170bn merger between miners BHP Billiton and Rio Tinto would be “terrible” for global competition and should be rejected by anti-trust regulators, according to Zhang Xiaogang, president of the CISA.
The prospect of a merger between two of the world’s biggest three suppliers of iron ore has been resisted by many steel companies. This is because of the extra power a BHP/Rio union would have for forcing through price increases for ingredient in steel making.
Last week the Australian anti-trust regulator approved the merger of the two Anglo-American rivals, leaving the European Union’s competition authority as the final regulator to decide on the deal. It has until January to do so.
China lacks its own supply of good-quality ore and so its steelmakers rely heavily on BHP, Rio and Vale of Brazil, the third big iron ore miner.
Iron ore prices have risen steeply in recent years, adding to the cost pressures for the steel industry.

Steel industry to see regular production cut(2008/10/6)

In August, China’s output of pig iron was 40.05 million tons, down 1.5 percent year-on-year and 4.6 percent from July; that of crude steel was 42.57 million tons, up 1.3 percent and down 5.2 percent; and that of steel products was 47.8 million tons, down 0.2 percent and 6.3 percent.
Between January and August, China’s output of pig iron, crude steel and steel products stood at 329 million tons, 351 million tons and 399 million tons respectively, up 6.5 percent, 8.3 percent and 10.1 percent.
The production cut was blamed mainly on a falling profit, on top of the environmental concerns during the Olympic Games. Some middle and small mills cut or even stopped production in August because losses occurred in the sales of long products.
In August, output of small and medium sections was down 9.3 percent; that of rod was down 6 percent; that of rebar was down 11 percent; that of wire was down 5.9 percent; that of hot rolled sheet was down 14.3 percent; that of hot rolled narrow strip was down 27.5 percent; that of cold rolled narrow strip was down 4.6 percent and that of welded pipe was down 3.2 percent.
Nearly one third of blast furnaces in Tangshan were reported to shut down in August and only one fourth of local strip lines still kept operational.
Forming an automatically balanced supply-demand system is an ideal result. In other words, steelmakers should arrange their operations in line with the market profits, which will make most mills always profitable, while bring 20 percent or more to the verge of losses.

Hebei steel mills halt production(2008/9/28)

17 out of the 20 steel mills in Fengrun District of Tangshan City, Hebei have closed up as of mid-September while other three mills keep running only for disposing of the remainder of billet stocks.
The similar things also happened to Fengnan District of the city, where is home to four non-governmental steelmakers. Tangshan Guofeng Iron and Steel, Tangshan Ruifeng Iron and Steel Group and Tangshan Beishiti Group are close to ceasing production while Tangshan Qingquan Group has shut down due to the withdrawal of a major shareholder.
One official from the district says the local economy will probably be affected if these four mills cannot resume their operations soon. Most of over 100 smaller mills in Tangshan are steel processing re-rollers who need to buy billet from Baotai Iron and Steel, 15 kilometers away.
With the prices of iron ore concentrates and coke soaring, Baotai Steel completely stopped production from August 25 following an output cut by 40 percent during the Olympics. A soft demand in the downstream sector is another reason for these re-rollers to halt production.

Structure adjustment of high energy consumption and high emission industries steps forward(2008/9/27)

According to Ministry of Environment Protection, National Bureau of Statistics and National Development and Reform Commission, during the first half of 2008, the COD (chemical oxygen demand) emission in China totaled 6.742 million tons, down by 2.48% from that of the same period in 2007; and sulfur dioxide emission totaled 12.133 million tons, down by 3.96%. During the first six months, 40.60 million KW coal based desulfurizing power stations launched operation, and 8.36 million KW small coal based power stations were shut down. And the structure adjustment of high energy consumption and high emission industries, including iron and steel, coking and so on made progresses.

Akesu will shut down the metallurgic capacities with high energy consumption in two years(2008/9/27)

To boost the new type of industrialization and secure a healthy growth of economy, Akesu now is abolishing the small metallurgic companies. On 22nd Sep, local government signed documents of responsibility on shutting down and abolishing the outdated small metallurgic capacities.
Abolishing those capacities is to change development mode of this industry from “small and dispersive” to “scale, environment-friendly, and sustainable”, while boosting the work on energy-saving and emission decreasing.
To deal with those small companies, Akesu Area made special rules against the small metallurgic capacities, including ban of the bar production and sale in this area. Meanwhile, local government decides to demolish the blast furnaces, converters and rolling companies or capacities constructed before 2005 and on the list of capacities to be washed out by the end of 2010; and those after 2005 will be shut down by the end of 2008; and the limited capacities before 2005 must be upgraded in a limited time, and those after 2005 will be closed by the end of 2010.

Tianjin-US liner route open (2008/9/25)

A non-stop sea route transporting steel from the Tianjin Port to the Western US Bay was open to use on September 18. The liner, jointly established by Tianjin Port and South Korea’s Hyundai Merchant Marine, will serve two to three times a month with each voyage carrying 40,000 to 50,000 tons of steel.
With the further development of the Binhai New Space in Tianjin, steel products have become another mainstay in the port’s serving structure next to container, crude oil, coal and iron ore.

Coke continues to drop in Shanxi (2008/9/23)

The market has been confused by the prices of coke in Shanxi as producers continued to significantly cut their ex-work prices on a quiet transaction. The prices of the second-grade metallurgical coke were offered at 2,400 to 2,700 yuan per ton by most plants, with 2,200 to 2,300 yuan per ton as the lowest. Major coking plants in Shanxi decreased the price of coke by 100 yuan per ton in September, provoking dissatisfaction among steelmakers.
Coke producers are likely to further cut production on an obviously rising stock due to the absence of demand from the steel industry. The situation will be worse with 10 million tons of new capacity ready to be launched in the second of this year or the first half of next year in Hebei.
The export duty of coke has risen to 40 percent over the past two years, sending the price of coke to 3,000 yuan per ton in the middle of the year from 2,000 yuan plus per ton early this year. The price experienced a massive drop later due to foreign customers’ decreased buying on rising costs and the delayed recovery of normal operations among the domestic mills during the post-Olympics economy.
China should launch coke futures as soon as possible as a market-oriented mean to make the coke industry to grow steadily, experts believe.

Housing removal compensation in Zhanjiang released(2008/9/22)

The Municipal Government of Zhanjiang enhanced compensation standards for housing removal because of the construction of the Zhanjiang Steel Project.
According to the new plan, ordinary brick-structured houses will be paid 600 yuan per square meter, compared to 550 yuan per square meter in an original plan and the compensation for frame structured and concrete buildings will be increased by about 300 yuan per square meter.
In order to avoid compensation fraud, compensation standard for newly built brick walls and sheds will be lowered to 150 yuan per square meter from the previous 250 to 300 yuan; that for makeshift sheds will be lowered to 70 yuan per square meter from the previous 200 to 220 yuan. Fruit trees beyond a normal planting density will not be made up.

7.68 million tons of steel exported from China in August(2008/9/16)

According to statistics from the customs, in Aug 2008, China exported 7.68 million tons of steel products, increasing by 470,000 tons from that of July, and 2.30 million tons (42.78%) from that of the same period in 2007, making a new record.
And the export from Jan to Aug totaled 41.84 million tons, down 7.2% from a year ago; and the export value for the first eight years totaled 41.9 billion US dollars, increasing by 36.7% with the same comparison.
In August, China imported steel products 1.33 million tons, down by 7.64% from that of July, and 9.15% from a year ago; and the import during the first eight months totaled 11.06 million tons, down 4.3% from a year ago.
In this connection, the net export of steel from China in August was 6.35 million tons, increasing by 10.05% from that of July; and 2.43 million tons from that of the same month in 2007, up 62.2%.
In Aug, China exported 560,000 million tons of billets, and that of the eight months totaled 920,000 tons, down by 83.5% from a year ago. Meanwhile, the import of billets in Aug and the first eight months were 10,000 tons and 120,000 tons respectively, with the later down by 26.4% from a year ago.
In August, China exported 1.41 million tons of coke. And China exported 9.68 million tons of coke from Jan to Aug, down 5.7% from a year ago, with an export value of US $4.36 billion, up 139.9%.
In August, China imported iron ore of 37.40 million tons, decreasing by 2.23 million tons from July and increasing by 27.69% from a year ago. From Jan to Aug, the import totaled 306.97 million tons, up 22.6% from a year ago; and the value totaled US $36.6 billion, up 115.4%.

Inner Mongolia vows to lower energy consumption(2008/9/12)

The Inner Mongolia government has made up its mind to advance a new energy saving campaign after the region failed to achieve its target of reducing per unit GDP energy consumption by 5.26 percent in 2007.
Ya Saning, director of the Economic Committee of Inner Mongolia Autonomous Region said in an interview that in order to realize the target of reducing per capita energy consumption by five percent in 2008, the government recently issued a series of new measures to strengthen efforts to limit production on the heavy-energy consuming industries such as calcium carbide and ferroalloy, lift electricity fees on these industries by 0.07 yuan per kilowatt hour, encourage them to expand industry chains, enhance high-value added levels and pay extra subsidies to those suffering great from eliminating outdated capacity.
He didn’t rule out a possibility of having local producers of calcium carbide and ferroalloy closed up by the end of the third quarter of this year if necessary and finally driving them out of the region.

Steelmakers in Hebei to participate in iron ore purchase program(2008/9/12)

Dozens of domestic heavyweight non-governmental steel producers are planning to set up an iron ore investment group to acquire mineral assets in the overseas markets and take part in the international iron ore price negotiations. The group, with a combined steel capacity of more than 70 million tons per year, larger than any other steel giant in China, is said to be initially included large non-governmental steelmakers in Hebei Province such as Delong Iron and Steel, Zongheng Iron and Steel and Tangshan Guofeng.
The Shagang-led group will have a registered capital of 0.5 to 1 billion yuan and account for a third of the country’s total iron ore consumption.

Guangdong Zhanjiang Iron and Steel Project boosts the preparation work(2008/9/10)

According to sources, under the support of the government of Guangdong Province, Zhanjiang East Island iron and steel project now is boosting the preparation work, with the five infrastructure projects advancing, and the commanding center for construction of the project established.
Baosteel Group and Guangdong Province decided to set up a large iron and steel industrial base in Zhanjiang East Island, and the project was approved by National Development and Reform Commission recently for the preparation work, including road, railway, port, power and local resident relocation.
Among them, the East Island branch line is expected to break ground in early 2009; Jiangjiang water supply project has had the financial plan, and may launch construction by the end of 2008. Meanwhile, the 220 KV power transmission line is expected to be completed by the end of November 2008.

Coking coal price sees downward pressure on falling steel prices(2008/9/9)

As of the week ending August 29, the domestic steel prices experienced a 7th consecutive week of decline with prices of construction steel, medium plate, hot and cold rolled sheet/coil all falling back. According to the NDRC, the domestic composite steel price index stood at 160.99 points at the end of July, down 0.48 points from a month earlier. A source from Nanjing Steel cited a weak demand from the downstream sector for the falling steel prices. China’s leading real estate group Vanke said in its interim report that the company will sharply slow down the pace of housing development in the second half of this year.
Accordingly, there is a strong possibility of a tumble in the coking coal price that has been keeping at high levels, with the poor sentiment in the steel industry gradually penetrating into the upstream sectors like the coking coal industry. Shanxi Coking Enterprises Federation decided at the end of August to lower the coke price by five percent, or 150 to 200 yuan per ton, in September.

Subsidies given to backward elimination efforts in Guangdong(2008/9/9)

Guangdong province has so far shut down and eliminated more than five million tons of outdated steel capacity as part of a scheme to phase out 10 million tons of steel capacity during the 11th Five-Year Plan. As a result, the first batch of provincial financing subsidies valued 24.81 million yuan were given to six cities including Meizhou, Heyuan, Qingyuan and so on who had axed 1.57 million tons of steel capacity and 110,000 tons of pig iron capacity.

Steelmakers cut output on weak demand(2008/9/5)

The sharp slowdown of the growth in the domestic construction and real estate industries and the rising raw materials costs in the first half have driven steelmakers to cut their output, carry out maintenance in advance or even halt production. According to a source, it was the 7th consecutive week (from August 22 to 29) for the domestic steel prices to trend downward with construction steel, medium plate and cold rolled sheet/coil prices all going down.
According to the latest news, imported iron ore with 63.5 percent grade was priced at 1,260-1,300 yuan per ton on September 1, down 200 yuan per ton from a month earlier. As of August 8, iron ore stock at Chinese ports still stood at 67.55 million tons, up 52.86 percent from last year’s 44.19 million tons.
Besides, the Shanxi Coking Enterprises Federation recently decided to lower coke price by five percent, or 150-200 yuan per ton, in September because of a weak demand. Coke producers in the province also will cut their output to ease pressure from the high stock level among steelmakers. A source predicted that the growth of iron ore supply will exceed that of consumption in 2008. It is almost unlikely to see a revival in the steel prices at the rest of the year amid a downward trend in both iron ore and coke prices. The situation will be worse when steel products originally bound for the overseas markets have to be resold in the domestic market due to the upward adjustment on export duties by the State.

Hebei steel industry boosts consolidation pace(2008/8/29)

Hebei Iron and Steel Group has launched a businesses and resources integration by setting up international trade and mining companies after its debut on June 30. With an overall capacity of more than 31 million tons per year, the group has overtaken Baosteel as China’s largest steelmaker.
In July, it produced 2.84 million tons of pig iron, up 17.67 percent year-to-year; 3.07 million tons of steel, up 13.12 percent and 2.64 million tons of steel products, up 10.34 percent; created a sales revenue of 18.40 billion yuan, a profit and tax of 1.13 billion yuan and a profit of 790 million yuan.
The group integrated the foreign trade businesses in its subsidiaries like Tangshan Steel, Handan Steel, Xuanhua Steel, Chengde Steel and Wuyang Steel by setting up the Hebei Iron and Steel Group International Trade Company. It also plans to establish a mining company to consolidate mineral resources in its subsidiaries.
Hebei Iron and Steel Group aims to build China’s largest high-quality construction material base, largest vanadium and titanium base and largest premium flat products base. It will also set up research institutes of its own, enhance self-development ability and competitiveness.

Caofeidian New Space expedites development pace(2008/8/27)

Caofeidian New Space has finished a total investment of more than 60 billion yuan until now, including 17.58 billion yuan during the first seven months of this year, up 159.2 percent.
The project has invested 5.99 billion yuan in roads and railways construction, 920 million yuan in ports and 10.67 billion yuan in projects, including two 300MW coal-fired powerhouses.
By the end of 2010, Caofeidian project is expected to invest 150-200 billion yuan and create a fiscal revenue of more than 10 billion yuan a year.

Hebei tries to make up shutdown losses(2008/8/27)

A total of 5,000 firms in Hebei province have been ordered to cease or cut production since June 1, 2008 in order to ensure a good air quality during the Beijing Olympic Games and the following Paralympics Games ending September 20, and the local economy in the third quarter has felt the weight of such a move.
The province saw a decline of 10 percentage points in its industrial growth in July due to the executive shutdown and a traffic control. The figure is expected to further drop two to three percentage points in August and September.
In order to make up these losses, the local government has promised to ensure a steady transportation for coal, electricity and oil after the Games and issued 21 administrative stipulations to support non-governmental enterprises.

Inner Mongolia raises the electricity price for alloy production(2008/8/22)

According to sources, the government of Inner Mongolia Autonomous Region issued a notice, saying that the government decided to raise the electricity price for ferroalloy production by 0.07 Yuan per KWH since September, which will add 600 to 700 Yuan per ton of production cost for the ferro-silicon producers. According to the Notice on Several Questions about the Electricity Price in Gansu Province and Guangxi Autonomous Region by National Reform and Development Commission, the price in two province and region will be partly raised.
According the participants, the rise in electricity price will no doubt add pressure to the producers. 0.07 Yuan per KWH means 600 to 700 Yuan per ton increase in production cost for the ferro-silicon producers, therefore they have to raise the products sale prices in turn. Offer prices of ferro-silicon have moved up in Wuhai, with silicon 75% product ex-work offer up to 8,400 to 8,500 Yuan per ton, silicon 72% offer to 7,800 to 8,000 Yuan per ton.
Yesterday, offer of silicon 75% ferro-silicon from E’erduosi came to 8,400 to 8,500 Yuan per ton, and that of silicon 72% ferro-silicon came to 8,100 to 8,200 Yuan per ton, both of ex-work prices. With the offer in Shizuishan Ningxia were 7,800 to 7,900 Yuan per ton and 7,600 to 7,700 Yuan per ton respectively.
In Gansu, the basic charge for electricity for large industry consumers will maintain at the same level, but the electricity price will rise and the electricity price for general industries will be adjusted. Now the list price of electricity for large industry consumers during the low water period is: 1 to 10 KV, 0.5542 Yuan per KWH; 35 to 110 KV, 0.5312 Yuan per KWH; 110 KV, 0.5092 Yuan per KWH; 220 KV and above, 0.4932 Yuan per KWH.

Steel logistics center to open in Mianyang (2008/8/21)

Shanghai Jiangmin Trade Co., Ltd. and Shanghai Shanyuan Iron and Steel Co., Ltd. agreed to set up the Mianyang Steel Fair in the New and High-tech Zone of Mianyang city on August 15. The 150 million yuan project, covering 140 mu, is the city’s first trade center concerning the storage and wholesale of steel products, building materials, sections, pipes and flats and will invite 400-600 major steel producers and traders throughout the country. After the completion, it will have a sales revenue of five billion yuan per year and a profit and tax of more than 100 million yuan and help lower steel prices by more than 200 yuan per ton on average in the city.

Inner Mongolia raises the electricity price for alloy production(2008/8/20)

According to sources, the government of Inner Mongolia Autonomous Region issued a notice, saying that the government decided to raise the electricity price for ferroalloy production by 0.07 Yuan per KWH since September, which will add 600 to 700 Yuan per ton of production cost for the ferro-silicon producers. According to the Notice on Several Questions about the Electricity Price in Gansu Province and Guangxi Autonomous Region by National Reform and Development Commission, the price in two province and region will be partly raised.
According the participants, the rise in electricity price will no doubt add pressure to the producers. 0.07 Yuan per KWH means 600 to 700 Yuan per ton increase in production cost for the ferro-silicon producers, therefore they have to raise the products sale prices in turn. Offer prices of ferro-silicon have moved up in Wuhai, with silicon 75% product ex-work offer up to 8,400 to 8,500 Yuan per ton, silicon 72% offer to 7,800 to 8,000 Yuan per ton.
Yesterday, offer of silicon 75% ferro-silicon from E’erduosi came to 8,400 to 8,500 Yuan per ton, and that of silicon 72% ferro-silicon came to 8,100 to 8,200 Yuan per ton, both of ex-work prices. With the offer in Shizuishan Ningxia were 7,800 to 7,900 Yuan per ton and 7,600 to 7,700 Yuan per ton respectively.
In Gansu, the basic charge for electricity for large industry consumers will maintain at the same level, but the electricity price will rise and the electricity price for general industries will be adjusted. Now the list price of electricity for large industry consumers during the low water period is: 1 to 10 KV, 0.5542 Yuan per KWH; 35 to 110 KV, 0.5312 Yuan per KWH; 110 KV, 0.5092 Yuan per KWH; 220 KV and above, 0.4932 Yuan per KWH.

Zhanjiang steel project fed by local metal resources(2008/8/14)

Rich resources such as limestone for flux, dolomite ore and serpentine ore around Zhanjiang area have been confirmed by the Guangdong Hydrology Bureau after 2 years of exploration in neighboring Zhanjiang area including southwestern Guangdong as well as central and southern Guangxi Zhuang Autonomous Region since August 2006.
These resources could cater to the 140 billion yuan Zhanjiang steel base project, promoted by Baosteel and Shaoguan Steel in May 2006 and designated to produce 20 million t/y of steel, including 10 million tons of high-grade steel for auto and electric consumer goods, according to related authorities in Zhanjiang, Guangdong province.

China steel exports up 20 percent in July(2008/8/13)

 (Xinhua) -- China's steel exports swelled to 7.21 million tonnes in July, up 21.38 percent year on year. The amount was 1.99 million tonnes more than June, China Securities News reported on Tuesday, quoting China Customs statistics.
Experts attributed the surge to the deferred export of June's alloy steel.
Tianjin Port started to check alloy steel exports in June. "At least 700,000 to 800,000 tonnes of alloy steel were kept within the harbor till July because of the half-month checking time," said umetal.com analyst Zhang Ping.
"The 5 percent tax rebate on alloy steel was also part of the reason for the export surge."
Spurred by rising prices on the international market, the country's steel exports have showed signs of rebounding since March. The upward trend urged Chinese Customs last month to suggest reinforcing supervision over steel exports to prevent it from getting out of control.
Customs statistics showed national steel exports stood at 34.15million tonnes in the first seven months this year, down 14 percent over the same period in 2007.
July's net export, however, reached 5.77 million tonnes, representing a 45.7 percent month-on-month increase.

Guangxi will construct a large iron and steel base by 2012(2008/8/7)

According to the 100 Billion Yuan Industry and Key Industries Development Plan of Guangxi Zhuang Autonomous Region, till 2012, the production value from metallurgy industry in Guangxi will reach 170.0 billion Yuan, and the value added will reach 49.0 billion Yuan, while the production of iron and steel products will increase to 20 million tons, and that for pig iron to 17 million tons. Till then, the steel production of Guangxi will take a ratio of 3.7% among the whole in China, up from 1.7% in 2007, and Guangxi will enter the top ten producers of steel production in China. Guangxi will be a large iron and steel base in China.

Ningxia to control production on ferroalloy and calcium carbide(2008/8/6)

Ningxia is planning to control production in the two heavily energy consuming sectors of ferroalloy and calcium carbide from August 1, in a bid to ensure energy saving and emissions reduction.
The government has decided to limit ferroalloy production to 200,000 tons and calcium carbide output to 100,000 this month. During the first half, the autonomous region produced 545,400 tons of ferroalloy with an estimated 1.1 million tons for the whole year and 1.082 million tons of calcium carbide with an annual output of 2.1 million tons. In 2008, local ferroalloy output is to limit to 900,000 tons and calcium carbide output to within 2 million tons.

Coal shortage threatens power supply(2008/8/4)

 China may face electricity blackouts nationwide this year due to inadequate power coal supply, the country's power regulator said in a report released on Friday.
According to the State Electricity Regulatory Commission (SERC), increasing coal supply pressure has forced domestic power plants to stop operation occasionally.
The coal reserve in the country's big power plants was 43.81 million tonnes, merely enough to support 11 days of normal operations, SERC statistics showed.
Power coal prices kept rising amid increasing demand from the country's coal-fired power plants, which supply 78 percent of the country's electricity. Prices at the Qinghuangdao coal market topped 1,065 yuan (about 155 U.S. dollars) by the end of July, up 115 percent from the same time last year.
"A drop in coal quality has also affected the normal operation of power facilities," the report said.
Another threat to electricity supply comes from the power grid itself. The design capacity of some power supply facilities in the country fell short of the actual demand, according to the SERC report.
In addition, some power distribution grids were in need of equipment update, putting the national power grid at the risk of large-scale electricity cut off.
Yu Yanshan, the SERC general office deputy head, said earlier that China was expecting a maximum daily power shortage of 10 million kw this summer.

Top ten iron and steel companies take 40% of the crude steel production (2008/8/1)

 On the enlarged meeting of the fourth standing committee of the third section of China Iron and Steel Association (CISA), Shan Shanghua, general secretary of CISA, said that, the top ten iron and steel companies had a crude steel production of 109.1933 million tons during the first half year, taking a share of 41.37% of the whole, and the industry centralization ratio went up by 5.28 percent. The integration and reform of iron and steel companies in Shandong Province contributed a lot to the increase of industry centralization ratio in iron and steel industry.
During the first half, Shandong Iron and Steel Group, Guangdong Iron and Steel Group and Hebei Iron and Steel were established successively, boosting the integration and reform of companies in iron and steel industry, and helping to lift the industry concentration ratio. If not take the three groups mentioned above into consideration, the top ten crude steel producers had a production totaled 95.2874 million tons during the six months of 2008, taking a share of 36.20%.

Lianyungang gained approval for 250,000 tons ore wharf project(2008/7/25)

 On 14th July, National Development and Reform Commission gave approval to Lianyungang Port for the 250,000 ore wharf construction project. The project will construct a 250,000 tons discharging berth for iron ores, which can berth 300,000 tons vessels, and the design capacity is 12.00 million tons per year at first, which is to be expanded to 15.00 million tons per year in the future. The project involves an investment of 1,593 million Yuan. When completed, the project will ease the tight ores discharging capacity in Lianyungang Port, and boost the economy development in inner land.

Gansu conducts energy consumption audit on key firms(2008/7/23)

 During the first five months, energy consumption of added value per 10,000 yuan among 209 key industrial enterprises in Gansu who consume more than 10,000 tons of standard coal including metallurgy rose more than 2% year-to-year, according to statistics. 14 state-monitored key firms consumed 6.5768 million tons of standard coal, up 11.4%.
The local government sent 5 inspection teams to conduct an energy audit over 164 enterprises consuming more than 10,000 tons of standard coal in the province from July 17 in a bid to realize a target of reducing 4.5% of energy consumption within this year.

Jiangsu demolished outdated iron and steel capacities of 3.262 million tons during the first half(2008/7/21)

 According to the results of 2007 pollution and emission decreasing issued by Ministry of National Environment Protection, National Development and Reform Commission, Statistics Bureau and Ministry of Supervision, the emission of COD and SO2 in Jiangsu in 2007 decreased by 4.9% and 8.0% respectively from those of 2006, which means Jiangsu Province has overfulfiled the target set by center government for the second time in two years in line.
According to Zhu Tiejun, an official from provincial bureau for environment protection, the target for 2008 in Jiangsu is control the emission of SO2 under 1.1685 million tons, down 4.1% from that of 2007; that of COD under 862,100 tons, down 3.3%, which is hard to realize.
Take the first half for example, the emission of COD increased by 33,300 tons and that of SO2 increased by 53,900 tons. Therefore, it is hard to absorb the increases while realize the target for decreasing.
Therefore, the province takes a series of measures to secure the target, including the followings.
Adjust the production structure and demolish the outdated capacities. During the first half, Jiangsu Province closed and demolished outdated iron and steel capacities 3.262 million tons.
Stricter the standard for new projects. Till now, three development zones and two counties in Jiangsu Province has stopped giving approvals to new projects which will add new pollutions.

Second batch of export quotas of coke in general trade in 2008(2008/7/17)

 Issuing authority: The Ministry of Commerce of China
Issuing document: Circular No 67, 2008
Issuing date: July 2008
The MOC issued the second batch of export quotas of coke in general trade in 2008 according to the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods.
1. The quota is presented to enterprises meeting application requirements. The quota assignment is based on the export performance of each enterprise during 2005-07 and partly considered exports by producers in 2006 to reflect a preferential policy toward producers.
2. Related authorities in charge of business affairs are required to inform local enterprises of this circular, keep a close watch on export activities and let the MOC know the result of the program.

Table of the second batch of export quotas of coke in general trade in 2008

Hebei steel industry shifts toward coastal area(2008/7/3)

 State-owned Hebei Iron and Steel Group opened at Shijiazhuang yeasterday with a registered capital of 20 billion yuan. The new group, incorporated Tangshan Steel and Handan Steel, will see an output rise from 31 million t/y to 50 million t/y by the end of 2009.
The CISA deputy vice president Luo Bingsheng said the debut of the new group may help boost the centralization degree of Hebei’s steel industry, which is the dominant industry in the province. In 2007, Hebei produced over 100 million tons of steel, the 6th consecutive year topping the output lists of crude steel, pig iron, steel products and iron ore nationwide. The focus of the steel industry in Hebei will gradually switch to coastal area, he added.
By the end of 2020, the province will squeeze 80 million tons of steel capacity.

China continues to face tight coal supplies(2008/7/2)

 The supply of coal used in power generation will continue to face a shortage, said an official with the China Electricity Council.
"The supply of coal, which fuels over two-thirds of China's power plants, is still tense nationwide, causing big pressure for the country's power plants as well as the total power supply in the country," said Xue Jing, director of the department of statistics and information under the China Electricity Council.
In Shandong province, local media reported that at present power plant reserves, which should usually have enough coal for at least 15 days of operation, only had reserves for 11 days.
As a kind of primary energy source, coal supplies will continue to face difficult times in the future, said Xue.
The relatively limited capacity of China's coal companies and transportation also caused the shortage, she said,
The summer, which is China's highest energy consumption period, will also bring about intense pressure on coal supplies, she said.
To ensure supplies, China sold less coal abroad in the first five months of the year, said the General Administration of Customs. Between January and May, China exported 18.5 million tons of coal, a decline of 4.1 percent from the same period last year.
But the export value rose 48.3 percent to $1.68 billion as the average price was up 54.68 percent to $90.8 per ton upon stronger demand worldwide.
Although the country announced it will raise the power tariff in July, this cannot totally offset power companies' losses mainly caused by rising coal price, said Xue.
"To power companies, this price hike can offset some 50 yuan increase in the coal price per ton, however, in some regions coal prices have increased by as much as 100 yuan per ton," she said.
The National Development and Reform Commission (NDRC) in July said electricity charges for commercial units would increase by 0.025 yuan per kWh from July 1.
But urban and rural residents and the farming and fertilizer production sectors were exempted from the increased electricity charges. Areas in Sichuan, Shaanxi and Gansu hit by the May 12 quake, too, have been exempted, the NDRC said.
The price of coal will be brought under government control temporarily, the NDRC said, because soaring coal price is the main factor behind higher electricity charges. (Source: China Daily)

ArcelorMittal establishes auto-use steel JV in China(2008/7/1)

(Xinhua)-- ArcelorMittal, the world's leading metal and mining company, is investing in China to establish a new automotive-oriented steel joint venture in the central Hunan Province.
The new company was expected to produce 1.2 million tons of automobile steel sheet annually, ArcelorMittal's China office told Xinhua here on Saturday.
ArcelorMittal, the Hunan-based Valin Group and Valin Steel Tube and Wire Co., Ltd. signed a cooperation contract on Friday for investing 5 billion yuan (725 million U.S. dollars) to set up the Valin ArcelorMittal Automotive Steel.
ArcelorMittal, Valin Group and Valin Steel Tube and Wire hold a stake of 33 percent, 33 percent and 34 percent, respectively, of the joint venture scheduled to turn out products by the end of 2010.
Lakshmi Mittal, chairman and CEO of the Luxembourg-based steel titan, said the move was part of its global and China strategy, aiming to better serve both global as well as domestic automotive clients through offering high value-added products with the support of ArcelorMittal technology.
Li Xiaowei, chairman of Valin Steel Tube and Wire, one of China's top 10 steel makers, said the company's development was boosted by the technological platform jointly set up with ArcelorMittal. He added it was improving the product mix and targeting high-end products.
The China Association of Automobile Manufacturers (CAAM) predicted the steel automotive application would reach 12.55 million tons this year nationwide and possibly climb to 21.76 million tons by 2015.
CAAM said although the country's top steel manufacturers, including Baosteel and Angang Steel, had started producing auto-use steel products, China still needed to import a large quantity of high-tier steel products, boosted by its surging domestic auto demands.
Dirk Matthys, CEO and country manager of ArcelorMittal, forecasts that the total number of vehicles in China will rise from the current 10 million to 18 million in 2017.
ArcelorMittal also has a stake in the Hong Kong-listed China Oriental Group Co. Ltd., a domestic iron and steel maker.

The export of iron ores from Yunnan in the first five months had a large decline(2008/7/1)

Due to the increases in export taxes for primary iron and steel products, the appreciation of RMB and the inflation in Vietnam and so on, Yunnan Province exported 50,000 tons of iron ores during the first five months of 2008, with an export value of 36.90 million Yuan, down 88.2% and 80.6% respectively from those (425,000 tons and US$ 190) of the same period in 2007.
According to an official from Customs of Yunan Province, in early 2008, the national government implemented export taxes for 113 iron and steel products out of the 203, including billet (25%), ferroalloy (20%), and wire rod and deformed steel bar (15%), which are the main products for export in Yunnan. Therefore, the export volume of iron and steel products from Yunnan Province had a considerable decline in the first five months. From Jan to May of 2008, the main exported iron and steel products from Yunnan include wire, deformed steel bar and ferroalloy, which took a share of 90%, but the volume and value decreased by 56.8% and 28.7% from those of the same period in 2007.

Shanxi: the companies who demolished the outdated capacities ahead of plan will gain a premium(2008/6/19)

According to the economy commission of Shanxi Province, the companies, which wash out the outdated capacities one or two years ahead of plan, will get 10% or 20% premium, beside the compensation from the government. Some time earlier, the provincial government of Shanxi announced the plan for compensation for the outdated capacities to be washed out in electricity, iron melting, steel melting, coke, cement, calcium carbide, iron alloy and other industries. To boost the washing out of the outdated capacities in high energy consuming and high pollution industries, Shanxi decided to give 10% premium to the companies who demolish the outdated capacities one year ahead, and 20% premium to companies two years ahead of the plan.
The standard for the demolishment of iron and steel capacities includes; the body of the blast furnace and/or the converter demolished, the sintering and other auxiliary facilities all demolished, the site cleaned and leveled.

Guangdong Steel Group expected soon(2008/6/17)

The NDRC officially approved early preparation work for Guangdong Zhanjiang steel base on March 17, which will set up by the State-owned Assets Supervision and Administration Commission of Guangdong Province (SASAC of Guangdong) and Baosteel Group on the premise of Guangdong’s promise to eliminate 10 million tons of outdated steel capacity. According to a responsibility letter, the province will scrap over 10 million tons of outdated capacity during the 11th five-year plan (2006-10).
The construction of assistant infrastructure for Zhanjiang project is proceeding smoothly. For example, Jianjiang water supply hub and a canal irrigation update in Leizhou broke ground on June 3. Shugang road linking the steel base and city proper and railway branch lines in East Island will start construction by the end of 2008 and in the first half of 2009 respectively.
According to a well-informed source, Guangdong Iron and Steel Group in the air will take Zhanjiang steel base as a vehicle and incorporate Guangzhou Steel and Shaoguan Steel with Baosteel, with its headquarter in Guangzhou. Baosteel will hold a 51% stake in the new company and SASAC of Guangdong hold remaining 49%.

China opposes US ruling on pipe dumping duties(2008/6/16)

The Ministry of Commerce (MOC) said that it firmly opposed to a recent final U.S. ruling on 29.57-615.92% of anti-dumping and anti-subsidy margins for standard steel pipes imported from China, noting that the use of the sanctions infringes U.S. rules and the tradition of not adopting anti-subsidy measures against non-market economies, which has been practiced since 1984.
What is more serious is the U.S. ruling that China distorted the domestic prices of hot-rolled sheet steel and subsidies were received by all pipe producers, ranging from state-owned to private makers.
It runs counter to the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures and has greatly hurt the interests of Chinese industry and is not acceptable to China.
China will continue to use legal means and WTO dispute settlement mechanisms to protect the legitimate rights and interests of domestic companies, the MOC added.

Guangdong will compensate for stopped or closed iron and steel capacities(2008/6/16)

Yesterday, provincial government of Guangdong held a meeting for the outdated iron and steel capacities to be stopped, and the capacities to be closed due to the relocation of Guangzhou Iron and Steel. The Development and Reform Commission and Environment Protection Office of Guangdong Province signed Letter of Responsibility for Iron and Steel Capacities Closure due to the Relocation of Guanggang, and signed with concerned local governments Letter of Responsibility for Stopping and Washing Out Outdated Iron and Steel Capacities, including Shaoguan, Heyuan, Meizhou, Huizhou, Shanwei, and so on. The concerned capacities to be closed in the “11th Five-year” amounted to more than 10 million tons.
It is revealed on the meeting that the government will give the companies who loss capacities some economic compensation under condition, and the detail is planning.

CISA members required to fix prices for quake-hit areas(2008/6/5)

The CISA has issued a circular to urge its members to sell their products to quake-hit areas at a fixed price prior to May 11, as part of a nationwide campaign to engage in anti-quake and disaster relief efforts.
The members’ output of color coating sheet is understood to account for about 40% of China’s total production.
Governments in half provinces and cities of the country have so far issued measures to temporarily intervene in or supervise prices of steels as raw materials to build tents and makeshift houses in the quake areas.

Nine provinces or municipalities strict the steel prices at level before earthquake(2008/6/4)

According to National Development and Reform Commission (NDRC), till now, governments in nine provinces or municipalities have asked local steelmakes to strict the prices for certain steel products at level before earthquake in Sichuan, including hot rolled coils, color-coated sheets and so on for reconstruction and relief operation.
Major steel producing provinces like Liaoning and Shandong issued a notice, asking local steelmakers to maintain the prices of hot rolled coils and color-coated sheets at levels on 11th May, and push back these higher prices. Hebei provincial government asked the producers to maintain color-coated sheet ex work prices below or equating those on 11th May for three months.
Shanghai, Hubei, Jiangsu, Tianjin, Jilin, and Shaanxi also implement similar measures.

SFE ready for steel futures(2008/6/2)

The Shanghai Futures Exchange (SFE) was ready to launch steel futures while the studies on oil futures and copper option were also made a stage progress, the SFE director Wang Lihua unveiled at the 5th Shanghai Derivatives Market Forum.
He added transaction amount in the SFE has jumped to over 23 trillion yuan in 2007 from 6 trillion yuan in 2003. The exchange concluded over 9 trillion yuan during January to April of 2008, up 52% year-on-year with an account number of nearly 400,000.

China’s demand on shipbuilding steel to top 12 million tons(2008/5/29)

China’s demand on shipbuilding steel is expected to surpass 12 million tons in 2008, up 27.5% year-on-year, top 16 million tons in 2009, up 33.3% and over 18 million tons in 2010, according to a forecast by the China Association of the National Shipbuilding Industry (CANSI).
Chinese shipbuilding industry consumed a total of 9.41 million tons of shipbuilding steel for ship repair and building, block assembly and ocean engineering in 2007, 75% of which were used in the shipbuilding sector. Of the total consumption, flats were 5.91 million tons, sections were 680,000 tons and others were 520,000 tons compared to 4.64 million tons of flats, 560,000 tons of sections and 460,000 tons of others in 2006.
Three provinces and municipalities with shipbuilding steel consumption above one million tons last year were Shanghai (1.82 million tons), Jiangsu (1.75 million tons) and Liaoning (1.33 million tons). Zhejiang was also close to the one-million-ton mark with a consumption of 940,000 tons.
China will have a shipbuilding completion of up to 25 million dwt in 2008 and 40 million dwt in 2009. China’s consumption of steel in the shipbuilding sector is expected to be 9.3 million tons in 2008, 13.56 million tons in 2009 and 15.4 million tons in 2010.

Olympic won’t hit the iron and steel companies in Hebei Province(2008/5/29)

The rumor that all the iron and steel company around Beijing will be closed during the Olympic Games is not true, Wang Dayong, general secretary of Association of Metallurgy Industry in Hebei Province, said that during an interview. “As far as I know, the middle and small sized companies who has high pollution and energy consumption will be closed. But these 30 plus major companies with a capacity of more than 1.00 million tons per year will not be highly affected, as these company meet the national standards for pollution control,” he said.

Shanxi to compensate firms eliminating backward(2008/5/28)

Shanxi province plans to pay over 30 million yuan to 15 local calcium carbide and ferroalloy enterprises for their efforts to eliminate outdated capacity.
According to industry policy, the province must shut down ferroalloy ore furnaces below 5,000-6,300 kva, silicon, calcium furnaces and silicon, calcium, barium and aluminum furnaces below 1,500 kva by the end of 2008, eliminate calcium carbide furnaces with a unit volume between 5,000-12,500 kva and open calcium carbide furnaces, ferroalloy ore furnaces of 6,300 kva, calcium carbide furnaces and silicon, calcium, barium and aluminum furnaces below 5,000 kva by the end of 2010.
The related authorities should draft a 3-year program to scrap backward in a bid to improve structural adjustment and industrial level.
The governments should phase out substandard producers year by year by taking compulsory measures such as cutting off water, electricity and gas supplies, stopping transportation, loans and licenses while encourage related enterprises to retreat from the market in advance by policies including raising entry threshold, differential electricity fee and “the earlier one leaves the more he rewards”.

China unlikely to intervene in domestic steel prices(2008/5/26)

Steel prices in China should be decided by the market, with no government interventions, Xiong Bilin, Industrial Department deputy director of the National Development and Reform Commission (NDRC), said on Thursday.
Xiong said these were his own personal opinions while commenting on Baosteel Group's delayed release of its price adjustments in the coming quarter, which had been scheduled for May 20.
Surging prices of imported iron ore would push up the costs of domestic steel makers by 400 to 600 yuan (57 U.S. dollars) per tonne, said Xiong.
The overall cost would rise by about 1,000 yuan per tonne, taking into account increased coke prices, shipment and energy charges, said Xiong.
The steel makers might want to pass on the cost rises to downstream enterprises, depending on what downstream players could afford, he said.
"Among them, the electric appliance manufacturers could be weaker in taking on upstream price increases. The high steel prices will go down if they were unacceptable to downstream companies," said Xiong.
Baosteel Group might also be contemplating the affects of the 8.0-magnitude earthquake that hit southwest China last week, said Hu Yanping, an analyst with Umetal.com. Reconstruction work would require large amounts of steel.
But given the high domestic prices already pressing upon downstream companies, market concern is that the government might raise export taxes to guarantee domestic supply, Hu said.

China ports iron ore stocks at record 79.22 mln tonnes(2008/5/22)

Imported iron ore stockpiles at Chinese ports reached a record 79.22 million tonnes as of May 15, and the figures are likely to increase further, China's National Development and Reform Commission said.
The commission, the country's top planning body, held a meeting on Friday to discuss how to lower iron ore port stocks, it said in a statement posted on its website, www.ndrc.gov.cn, on Tuesday.
It said the massive inflows of iron ore had caused overstocking and severe congestion in ports in northern China, including Qingdao, Rizhao, Tianjin and Lianyungang.
Lowering iron ore port stocks may help reduce domestic prices for iron ore and strengthen the country's bargaining position in talks over 2008 term prices with Australian miners.
Though Brazilian miner Vale, the world's top iron ore producer, has already agreed on a 2008 price hike of 65-72 percent, talks with Australian miners BHP Billiton Ltd/Plc and Rio Tinto are in a deadlock.
The Australian miners have demanded freight premiums to make up for the difference in transport costs, which at present stand at as much as $60 a tonne.
Severe port congestion in China, due to the large port iron ore stocks, has also helped push up freight rates for dry bulk cagoes to new records. The benchmark Baltic Dry Index hit a fresh high of 11,793 overnight. (Source: Shanghai Daily)

Hebei raises power costs for outdated capacities to hasten the washing out of outdated iron and steel capacities(2008/5/20)

According to the news from National Development and Reform Commission, Price Bureau and Development and Reform Commission in Hebei Province released a notice, which said that the power prices for operators of outdated iron and steel equipment, in order to force them out of market as soon as possible.
According to the notice, the price for outdated equipments will be 0.3 Yuan per kwh higher than the normal, and 0.1 Yuan higher than that the national standard since 1st May, and 0.4 Yuan per kwh higher since 1st Jan 2009. Meanwhile, the provincial government will check the results of the price hike, and will not allow any adjust to the prices standards. Those who should be charged with higher power prices but haven’t will be picked out, and pay that fee in a limit period.
According to the responsibility documents signed with NMDC, 5.69 million tons of iron making capacity and 8.13 million tons of steel making capacity in Hebei Province will be stopped by the end of 2010. Raising the price differential of power for outdated equipments will help hasten the closure of these capacities, and encourage the industry integration.

Iron and steel plants 200 km around Beijing will be closed(2008/5/19)

On 13th May, 87 days countdown to the 29th Olympic Games, the close of high pollution and high energy consuming companies, including iron and steel companies in Hebei Province began countdown. According to industry sources, now the concerned departments of the government have made plans to secure a higher air quality during the Games in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Shandong, and that for Beijing, Tianjin and Hebei will be more specified.
the condition
Zhao Hong, director of production in Tangshan Jianlong, confirmed the news. “42 companies of iron and steel, cement and glass and other industries will be closed,” He said.
With the largest iron and steel output, Hebei Province committed to securing a higher air quality during the Games earlier. In a notice issued on 1st April, industry office of Development and Reform Commission in Hebei Province said that 42 companies in Shijiazhuang, Chengde, Zhangjiakou, Qinhuangdao, Tangshan, Langfang and Baoding will be permanent stopped or demolished or temporary closed during the Games.
As to Tangshan, six iron and steel companies will be closed, including Tangshan Stainless Steel Company Ltd, Tangshan Xingye Gongmao Company Ltd, Tangshan Hangu Iron and Steel Company Ltd, Tangshan Lugang Iron and Steel Company, Tangshan Ruifeng Iron and Steel (Group) Company Ltd and Tangshan Jianlong.
Till now, there is no public clearance on the company lists to be closed and specific standards. According to small and middle size iron and steel companies, the related departments may control the pollutions from iron and steel companies by cutting or limiting the supply of electricity and water.
Dong Xiangzhu, General Manager of Tangshan Fenggang Iron and Steel, said, “It is said that all the iron and steel companies 200 km around Beijing is likely to be closed, but there is no written decisions till now. Small blast furnaces with an inner capacity of 200 cube meters below have been all shut down.”
200 m3 and below blast furnaces is to be demolished according to the national industry policy, therefore it is no surprise to see them shut down. But, the deadline of these furnaces was pushed back by two years, from the end of 2007 to the end of 2009. As a result, closing these blast furnaces may be due to the Games.
Opportunity for integration
Shougang, a major producer in China, will also be affected. Shougang have promised to cut output by 480,000 tons per month during the Games, to 200,000 tons per month.
But, relatively, the major iron and steel companies will have a lighter affection. An industry source said, “Closing a capacity of iron and steel melting of 4.00 million tons per year is in accord with the relocation project, not all due to the Games. And the hot strips facilities and other main equipments of Shougang have been moved to Caofeidian.” CISA said that the declines in output would not affect the supply and demand relation.
According to the statistics, the pig iron output during the Games will decrease by 1.98 million tons per month (Shougang and the six companies in Tangshan), amounting to 19% of the whole in Hebei, Beijing and Tianjin, and 5% of that in China. Adding the other small and middle sized companies, the decline in pig iron output will amount to 3.88 million tons per month, taking up 37% of that in Beijing, Tianjin and Hebei, and 10% of that in China.
Analysts points out, traders may take chances to increase the prices for iron and steel products. Now the price for hot rolled sheet and coil in Tianjin has risen to 5,750 Yuan per tons, and that in Beijing to 5,800 Yuan to 5,820 Yuan, and the prices in North all exceed those in East.
According to industry sources, taking the opportunities of output decline during the Games, China may boost the industry adjustment in North, by demolishing high pollution and high energy consuming companies and integration among companies.
Now the total production of major companies in North takes 45% to 50% of the whole in China, and the ratio may be lifted to 70% if integrated those small plants.

Beijing National Stadium and New CCTV Center use “Jinxi” H-Section steel(2008/5/13)

Till 5th May 2008, Jinxi Iron and Steel’s large H-section steel production line has been operational two years. During the past two years, H-section steel from Jinxi Iron and Steel has been used in many large projects both in domestic and abroad, especially the utilization in Beijing National Stadium, also known as “Bird’s Nest”, the main track and field stadium for the 2008 Summer Olympics, and the new center of CCTV, which gives the company an opportunity to increase the fame of this product.
Since launching operation, the “Jinxi” H-section has won ISO9001-2000 quality Attestation and European Quality Standard EC Attestation, and also the titles like first brand in H-section market of China, and the first choose of customers from domestic. This product has been sold to 15 countries and areas, and been utilized in many key projects, “Bird’s Nest” and including the new center of CCTV.

MOC issues supplementary list of coke, rare earth exporters for 2008(2008/5/12)

Issuing Authority: The Ministry of Commerce of the People’s Republic of China
Issuing Number: Circular No 38 2008
Issuing Date: May 5, 2008

The Ministry of Commerce (MOC) published a supplementary name list of coke and rare earth exporters for 2008 in accordance with the Application Conditions and Procedures of Export Quotas of Coke in 2008 (MOC Circular No 92 2007) and the Application Conditions and Procedures of Export Quotas of Rare Earth in 2008 (MOC Circular No 93 2006) as follows:

The supplementary list of coke exporters for 2008
1. Qingdao Coking Gas Co Ltd
The supplementary list of rare earth exporters for 2008
1. Changshu Shengchang Rare Earth Smeltery, Jiangsu Province



                                           The Ministry of Commerce of the People’s Republic of China
                                                                        May 5, 2008
　

Steel prices continue to warm up in May(2008/5/7)

Most mills across the country began a new round of price hikes from early May, with a rise ranging from 50-450 yuan per ton. The high end came from Shagang, who raised rebar price by 450 yuan per ton to 5,470 yuan per ton starting from May 1st.
Besides, Wisco has announced to lift wire rod prices by 300-400 yuan per ton in June while Liuzhou Steel has raised prices on some products by 100 yuan per ton. Selling prices have also been rising all the way with the hike of raw material prices. CISA’s 72 members achieved a profit of 44.057 billion yuan in the first quarter, up 26.47% year-on-year.

Kaifeng City will deal with local ferroalloy, calcium carbide and corundum companies(2008/4/30)

According to Environment Protection Office in Kaifeng City, the government there plans to deal with those companies in ferroalloy, calcium carbide and corundum industries that have a great pollution. Now the local government is checking all the companies of these industries and setting specified measures, targets and deadlines for each company who has been polluting the environment, basing on the Technology Standards of Pollution Control for Companies in Ferroalloy, Calcium Carbide and Corundum Industries in Henan Province. These projects without environment approval will be stopped till they get licenses, and be punished according to associated laws and rules. To those projects that are forbidden by national government, they will be demolished in a certain time. To those projects, which are in accord with the national policies and have got environment protection licenses, but fail to meet the requirement for total amount control of pollutions, they will be ordered to be corrected in a limited time period.

Industry department of NDRC studied Guangxi Fangchenggang Iron and Steel base(2008/4/25)

Leading by Xiong Bilin, vice director of industry department of NDRC (National Development and Reform Commission), a group from NRDC went to Guangxi Zhuang Autonomous Region and had a check of the preparation work of Fangchenggang Iron and Steel Base Project there, focusing on the port and the iron and steel base construction and the relocation of local residents.
The iron and steel base project is the largest investment project in Guangxi so far. The project is scheduled to break ground in Dec 2008, the 50th anniversary ceremony of Guangxi Zhuang Auto Region, and be completed in three years.
April 7th to 8th, Wugang, the major investor, invited several professors in iron and steel industry to give consultation, and set the target of construct the project a resources-saving, environment-friendly and clean project, with the resources fully used and less emission. The project will be a coastal iron and steel base in China leading the trend of iron and steel technology.

Beijing’s investment in heavy energy consuming sectors plunged(2008/4/23)

Beijing’s investment in chemical industry, cement and steel sectors reduced by 45.9%, 53.3% and 76.9% year-on-year respectively during the first quarter of 2008, according to information released by the Statistics Bureau of Beijing Municipality and the State Statistics Bureau. However, the slowdown in the investment would only put a limited influence on the growth of the city’s economy. Beijing government has made a big adjustment in the industrial structures, especially in some heavy polluting, heavy energy consumption and resources-intensive sectors, including cement, steel and petrochemical. For example, Shougang has already moved its main plants in the city to Hebei province and will largely reduce production of steel and pig iron this year.

Zhanjiang steel project starts sea-area using examination(2008/4/16)

Approved by the National Development and Reform Commission, the State Oceanic Administration held an examination meeting on the use of sea-area for Zhanjiang steel project at Zhanjiang city between 11 and 12 April.
The eastern island of Zhanjiang, still in an undeveloped state, boasts a unique deepwater port capable of berthing 300,000 dwt ore carrier and has potentials to build an ore dock with an annual treatment of 40 million tons.
Guangdong province’s steel consumption reached 40 million tons in 2007 and is expected to top 48 million tons in 2010.

NDRC: Steel prices continue to rise in March(2008/4/14)

A monitoring survey on the main steel markets in 30 provinces, autonomous regions and cities throughout China showed steel prices continued to rise in March with an average composite price of 5,572 yuan per ton for the main steel products, up 9.37% month-on-month and 36.1% year-on-year.
The average transaction price was 5,022 yuan per ton for construction steel, up 8.57% and 50.28% respectively, those of rebars (12, Q235 and 28, Q235) were 5,120 yuan and 5,061 yuan and ordinary wire rods（6.5, Q235 and 8, Q235）4,963 yuan and 4,964 yuan per ton.
That of flats was 6,116 yuan, up 9.06% and 25.65%; medium plates（10, Q235 and 40, Q235）5,701 yuan and 5,882 yuan; hot rolled sheets（1.5, Q235A and 2, Q235A）5,894 yuan and 5,770 yuan; cold rolled sheets（1.0, Q195-Q235 and 1.2, Q195-Q235）6,377 yuan and 6,409 yuan; galvanized sheet (0.75, 200g) 6,655 yuan; stainless steel （1.2×1000×2000）31,929 yuan; tube 6,181 yuan, up 7.89% and 26.16%; galvanized pipe（25, Q235BF）6,122 yuan; seamless pipe （108×4.5,20#）6,351 yuan; sections 5,072 yuan, up 11.15% and 50.04%; round bar（16mm, Q235）5,091 yuan, up 8.79% and 50.08%; angle steel 5,043 yuan, up 12.45% and 51.59%; I-beam (25, Q235) 5,082 yuan and channel steel 5,031 yuan.
The prices are expected to rise modestly later for the following three reasons:
1. Construction projects will be in full swing, bringing a strong demand on mill products.
2. The rising prices of domestic iron ore, ferrous scrap and coke will boost production costs.
3. Due to higher raw materials prices in the international market, buoyant demand and a depreciating US dollar.

Inner Mongolia will continue washing out the outdated ferrous and non ferrous metal capacities(2008/4/9)

As a key production base of iron and steel and non ferrous metals in China, to meet the requirements for energy saving and emission reduction, Inner Mongolia Autonomous Region will continue washing out the outdated ferrous and non ferrous metal capacities in 2008, and implement stricter standards for new comers in this field.
Basing on the rich mineral resources, the metallurgy industry in Inner Mongolia has a quick growth in recent years. In 2007, Inner Mongolia had a steel output of 10.40 million tons, and 1.35 million tons of ten non ferrous metals, increasing by 20.8% and 52.2% from those of 2006. among the ten metals, electrolysis aluminum accounted 1.02 million tons, up by 25.7% from a year ago.
According to Ya Saning, director of Economy Commission of Inner Mongolia Autonomous Region, to improve the structure of metallurgy industry, lift the industry level, Inner Mongolia intends to demolish blast furnaces with an inner capacity of 300 cube meter and below, realizing the target of decreasing outdated capacities of iron and steel by 5.463 million tons by 2009. In 2007, Inner Mongolia closed 91 small iron and steel companies and demolished a capacity of 3.693 million tons.
Meanwhile, the government will decrease the non ferrous metal capacity by 40,000 tons in 2008.
Besides, Inner Mongolia will stricter the standards for new comers and new projects, while focus on special steel, stainless steel and re-processing industry chain, and lift the ratio of special steel and high quality steel to more than 65% in 4 years. As to the projects for non ferrous metals, new electrolysis aluminum project must gain approval from concerned departments of State Council. And the process, energy consumption and environment protection have to meet the national policies.

China’s huge appetite for auto steel expected(2008/4/8)

Yaojie, vice secretary general of the China Association of Automobile Manufacturers predicted that China’s demand on auto steel would be 13.71 million tons in 2008, 15.1 million tons in 2009, 16.37 million tons in 2010, 21.76 million tons in 2015 and 27.67 million tons in 2020, double the level of 2008.
Yao said a car in structure is composed by 50-60% of steel and 12-15% of cast iron. In 2008, China’s auto output is expected to reach 10 million units, up 12.61% year-on-year. Of the total output, passenger car will account for 7.3 million units, up 14.42% and commercial vehicle make up 2.7 million units, up 8%.

The import prices for iron ore in Feb in Jiangsu reached new records(2008/4/8)

According to the statistics from Nanjing customs, from Jan to Feb 2008, Jiangsu imported iron ores of 5.737 million tons, with a value of 870 million US dollars in total, increasing 22.8% and 1.4 times from the same period in 2007. And the unit price averaged US $151.5 per ton, up by 96.3%. The reasons for the hikes in import prices for iron ores include: first, the high monopoly in iron ore supply side, and the weakness of domestic steel makers in ores pricing; second, the continuous rising ocean freight; third, the quickly rising demand in international market; fourth, the tight supply and demand relation in China.

First homegrown stainless continuous casting machine debuts(2008/4/7)

The first self-made 220×1,600mm stainless arc-shape slab continuous casting machine has produced the first tap of billet at Taishan Iron and Steel Group. The 20th China Metallurgical Construction Corporation of MCC, as the project contractor, took seven months to install over 2,400 tons of equipment, almost 90 tons of pipes and lay around 35 kilometers of cable since the project broke ground on September 8, 2007.

China sees slowdown in steel output growth during Jan-Feb(2008/4/1)

The National Development and Reform Commission said on its website that China’s steel output continued to rise during January and February of 2008, but the growth rate has eased while steel prices continued to rise.
China produced 79.45 million tons of crude steel in the first two months, up 6.4% year-on-year, with the growth rate down 16.7 percentage points and 89.05 million tons of steel products, up 12.3% with the growth rate down 13.1 percentage points. The country exported 7.25 million tons of steel products, down 17.2%, imported 2.67 million tons of steel products, down 0.9% and 75 million tons of iron ore sand, up 16.2%.
Domestic composite steel price index was 135.17 points in late February, up 9.03 points and 10.05 points from late and early January respectively, and up 25.55 points year-on-year. The average prices of 6.5mm steel bar, 10mm medium plate and 0.5mm cold rolled sheet were 4,810 yuan per ton, 5,694 yuan per ton and 6,412 yuan per ton respectively, up 6.2%, 9.3% and 11.3% from early January and up 47.9%, 33.8% and 17.3% year-on-year.
The metallurgy industry achieved profits of 39.2 billion yuan in the first two months, up 38.6%.

Guangdong to eliminate 4.65 million tons of outdated capacity(2008/3/28)

Vice director of the Environmental Protection Bureau of Guangdong Province said the emissions of sulfur dioxide (SO2) and chemical oxygen demand (COD) in 2007 were cut by 5.05% and 3.02% year-on-year respectively despite a growth of 14.5% in the province’s gross economy.
The province has pledged to further cut SO2 and COD emissions by 4% and 3.5% in 2008, start construction of all sewage treatment plants in 31 counties by the end of this year, eliminate 4.65 million tons of outdated capacity, 3.85 million kw of small thermal power stations and 10 million tons of cement capacity.

Shandong demolished steel melting capacity of 3.70 million tons in 2007(2008/3/24)

According to Economy and Trade Commission of Shandong Province, the province closed and washed out 2.48 million tons of iron melting capacities and 3.706 million tons of steel melting capacities in 2007, fulfilling the targets set by national government for 2007. Meanwhile, the more than 14,000 employees involved have been reallocated.
According to the responsibility documents signed between NDRC (National Development and Reform Commission) and Shandong Province Government, the first capacities to be demolished belonged to 17 companies, totaling 4.90 million tons of iron melting capacity and 7.91 million tons of steel melting capacity.
Till now, there still 15% of iron melting and 6% of steel melting capacities remain, which are listed as the outdated capacities to be washed out. Therefore, the further structure adjustment of iron and steel industry is even harder, as the industry is in dispersion, and the targets for energy saving and emission decreasing is heavy, said Wang Wanliang, head officer of Economic Operation Bureau of Economy and Trade Commission.

Steel base projects in Fangcheng and Zhanjiang approved(2008/3/24)

The National Development and Reform Commission (NDRC) formally approved two steel base projects in Fangcheng port, Guangxi Zhuang autonomous region and Zhanjiang, Guangdong province on March 17, 2008. The former will be jointly developed by Liuzhou Steel, Guangxi and Wuhan Steel (Wisco) and the latter by Baosteel, Shaoguan Steel and Guangzhou Steel.
According to the NDRC, Guangxi and Wisco will have to eliminate 5.41 million tons of pig iron capacity and 9.1 million tons of steel capacity and realize consolidation between the two through building the steel project in Fangcheng port. As to acquisition of Shaoguan Steel and Guangzhou Steel by Baosteel, a new company, controlled by Baosteel Co, will be established in Guangzhou. Guangzhou Steel will have to eliminate all pig iron, steel making and rolling capacity while Shaoguan Steel conduct technical reform by scraping outdated blast furnaces and small converters. Taking advantage of the Zhanjiang project, Guangdong has to eliminate 10 million tons of outdated steel capacity.

Gansu checks the results of the plans for energy saving and emission decreasing by 14 companies(2008/3/21)

According to Economy Commission of Gansu Province, to secure the targets having been put into practice and further boost the plan of 2008 for energy saving and emission decreasing, Gansu decides to check the results of the 2007 plans for energy saving and emission decreasing by 14 companies, who are under close monitoring, and also the involved offices, and these who didn’t complete the plan will be punished.
In 2007, Gansu Province set 40 targets of ten aspects, in order to “cool the growth of high energy consuming and high pollution industries, demolish the outdated capacities, and implement the key projects for energy saving and emission decreasing”, and the government break the targets down to concerned local offices that are directly under the authority of provincial government and key companies in industries like oil chemical, nonferrous metal, metallurgy and construction materials and so on.

Shandong encourages enterprises to explore mineral resources around the world(2008/3/12)

Shandong provincial government has announced to encourage local enterprises to explore 10 resources including iron ore, copper ore, bauxite ore, lead-zinc ore, sylvite ore, gold, rare earth metals, coal, timber and natural rubber around the world. The province hopes to import over 30% of resources produced by overseas mineral mines with Shandong enterprises as their shareholders.
Until now, the province has invested $400 million on overseas mineral market covering non-ferrous metal, forest utilization and timber processing. By 2010, the investment in overseas market will increase by 30% annually.

Fangchenggang Iron and Steel Base Project to break ground(2008/3/6)

On 29th Feb, Fangchenggang City and Wuhan Iron and Steel (Group) Company signed a MOU on starting construction of the Fangchenggang iron and steel base project.
From 26th to 28th Feb, representatives from Fangchenggang City visited Wuhan Iron and Steel (Group) Company, and had a talk with the managers of the company. Both parties agreed on boosting the iron and steel base project in Fangchenggang.
Hu Wangming, vice general manager from Wuhan Iron and Steel (Group) Company, said: “Fangchenggang project is in accord with national industry policy, and has advantages in location, resources and transport. The project should be realized as soon, and our company will develop the project a high grade and high quality iron and steel production base, contributing to the development of Fangchenggang City.”

Inner Mongolia plans to demolish ferroalloy capacity of 600,000 tons in 2008(2008/3/4)

According to Economic Council of Inner Mongolia Autonomous Region, while implementing the policy of quota production for ferro alloy and calcium carbide industries, Inner Mongolia Autonomous Region plans to expand much more outdated capacities in these industries.
Basing on the rich resources like coal, silica and iron and so on, Inner Mongolia has become an important production and export base of ferro alloy and calcium carbide and so on since 2000. But these industries have high energy consumption and high pollution, with a ton of calcium carbide consuming 3,000 KWH of electricity, and a ton of ferro alloy consuming several thousand KWH of electricity, while pulls out a lot of waste gas and dusts, having a big effect on the environment.
Therefore, the Inner Mongolia government took measures to limit the output of calcium carbide to 5.00 million tons and that of ferro alloy to 3.00 million tons in 2007. The company who used up the quota will be cut off electricity supply, and no quota to these higher energy consuming and pollution companies. Meanwhile, fifty-seven ferro alloy producers and five calcium carbide producers were forced to stop production in 2007, with the demolished capacities totaled 270,000 tons and 100,000 tons respectively.
To boost the energy saving and emission decreasing, Inner Mongolia Autonomous Region plans to demolish 1.00 million tons of ferro alloy capacity and 2.00 million tons of calcium carbide capacity during the “11th Five” period, up from 600,000 tons and 1.20 million tons. In 2008, local government targets at demolishing capacities of ferro alloy and calcium 600,000 tons and 200,000 tons respectively in 2008.

China’s crude steel output revises to 489.66 million tons in 2007(2008/3/3)

China produced 489.66 million tons of crude steel in 2007, up 16.8% year-on-year and 568.944 million tons of steel products, up 21.3%, according to the Statistical Communique for National Economic and Social Development in 2007. Both figures were 419,200 tons and 4.3359 million tons above those in a latest report.

Shaanxi held a meeting for closing and washing out the outdated iron and steel capacities(2008/3/3)

On 27th Feb, Shaanxi Provincial Government held a work meeting to make a schedule of closing and demolishing the outdated iron and steel capacities in Shaanxi Province. Weinan, Hanzhong, Baoji, Tongchuan, Yan’an and Shangluo six cities and Longgang Group signed responsibility documents for closing and demolishing the outdated iron and steel capacities.
Zhao Zhengyong, standing vice nomarch of Shaanxi Province, said: “Now Shaanxi is in a period of quick development, and also in a critical period of boosting the plan of energy saving and emission decreasing. Shaanxi Province has promised to demolish 2.98 million tons of outdated iron melting capacities from 2007 to 2010, and 880,000 tons of outdated steel melting capacities, which will save 1.25 million tons of standard coal and 2.49 million tons of water, and decrease emission of sulfur dioxide by 9,961 tons each year. Therefore, the government will take measures to deal with the outdated capacities listed, and ask cooperation from other departments like commercial and merchant office and so on. Meanwhile, Shaanxi will adopt a more detailed electricity prices to show the policy for the steelmaker, encourage, restrict or others. To the new projects, basing on the industry policy of the country, and the rules on land using and environment protection and so on, Shaanxi will take a stricter evaluation procedure of the iron and steel projects under and to launch construction. Besides, Shaanxi will boost the technology improving in companies and strengthen the resource utilizing and environment protection.”
“Local government should take responsibility and make detailed plans for closing and demolishing small sized blast furnaces, converters and electrical furnaces in the district, and sign responsibility agreements with concerned companies, and make clear the targets and the capacities on the list.” He added.

Steel takes the largest share in Shanxi export market instead of coke(2008/2/27)

According to the data from Shanxi Province, in 2007, 19 products from Shanxi Province have an export value of more than 100 million US dollars, increasing from 9 in 2006, and 3 in 2002. Among them, steel is the single product with highest export value.
According to the statistics, Shanxi had an export value of more than 10.0 billion US Dollars for the first time in 2007, to 11.58 billion US dollars, up 74.59% from that of 2006. And the destinations covered 174 countries and areas, up by 38 from that of 2002, with 50 involving a value more than US $10 million. USA, Japan and South Korea took the first three positions.
Meanwhile, Shanxi Province is changing from a resource supplier to a industrial products production base.

CISA’s basic views on international iron ore prices negotiations for 2008(2008/2/26)

CISA president: Zhang Xiaogang
1. The China Iron and Steel Association (CISA) and Chinese steel producers recognized and respected the results of international iron ore prices negotiations for 2008 settled between Baosteel and CVRD. The results complied with international iron ore trade rules and international convention.
2. Chinese steel producers were facing pressures of rising costs as a whole on substantial climb of iron ore prices. The producers were expected to intensify science and technology advancement and technology innovation, enhance technology content, develop high-end products, improve proportion of high-value added products, further strengthen management, lower consumption, save resources and lift their competition.
3. Global steel producers have entered high-cost era due to considerable rising prices of iron ore, coke and crude oil in the international market. From this point of view, steel prices will continue to keep high levels in the domestic and international markets in 2008.
4. It is strategically necessary for China’s steel industry to establish a long-term and steady supply chain of iron ore and coking coal. Chinese producers should further broaden international changes and co-operation, strengthen efforts to invest on or take part in overseas mines and establish longstanding and stable iron ore and coking coal bases through shareholdings.

China imports Russian iron ore fines for the first time from Alashankou Custom(2008/2/25)

Recently, Alashankou issued certifications of decreasing/exempting import taxes of an import deal of Russian iron ore fines. The deal contained 15,000 tons of Russian iron ore fines, which valued 1.89 million US dollars. This is the first import of Russian fines from Alashankou.
It is said that a company has signed an import deal of 250,000 tons iron ore fines in total, which values more than 30 million US dollars. The imported fines has an iron content of 65.5%, 2.5 percent higher than pellet, and the unit price is 126 US dollars per ton, US$ 29 lower than that of fines from Kazakhstan and US$ 35 higher than that of pellet. It is reported that the foreign fines sale is highly concentrated, and even was prohibited in the past two years.
Iron ore fines are made from raw iron ores, which was through crushing, grinding and concentration and other processes.

China’s steel exports down 5.4% year-on-year in January(2008/2/19)

According to statistics from customs, China’s foreign trade continued to grow rapidly in January 2008. Meanwhile, the county exported 4.14 million tons of steel products, down 5.4% year-on-year, imported 1.43 million tons of steel products, down 3.4% and 36.81 million tons of iron sands, up 2.7%.

Hebei’s steel output tops 100 million tons(2008/2/15)

Hebei Province produced 104.84 million tons of pig iron in 2007, up 22.14% year-on-year, 107.06 million tons of crude steel, up 17.72%, 104.75 million tons of steel products, up 37.26% and 309.54 million tons of iron ore, according to the Metallurgical Industry Association of Hebei.
Ratio of sheet and strip continued to improve and result of structural adjustment was obvious. The Association general secretary Wang Dayong noted provincial output of pig iron, crude steel and steel products all surpassed 100 million tons last year and ratio of crude steel to steel products has risen to 1.02:1 from 1.19:1 in 2006, suggesting a rapid growth of deep processing products from crude steel. Among other things, sheet and strip output was 55.92 million tons, up 51.1%, ratio of sheet and strip was 53.39%, up 4.89 percentage points.
In 2007, Hebei’s key metallurgical enterprises completed sales/output ratio of 99.97%, up 0.65%, achieved main business revenue of 544.51 billion yuan, up 45.41%; profits of 34.05 billion yuan, up 34.26%; profits and taxes of 54.17 billion yuan, up 33.68%. Completion of main economic indexes in the steel industry was in parallel with or better than the production growth of main products. After July, however, profit margins in the mills were squeezed substantially as their production costs grew fast due to soaring prices of raw materials.
Wang Dayong said steel producers in the province would face stiff challenges in 2008: Raw material and fuel prices remain high and prices of iron ore, coal, coke, electricity and transportation will further rise; cost pressure will become heavier due to new regulations on the imposition of mineral resources fee and rising labor costs; China will continue to strengthen macro regulations to curtail excessive growths of steel exports and fixed assets investment, to carry out tightened monetary policy and differential water and electricity fee policies on heavy energy consumption sectors.

Anhui stops the electricity supply to small iron and steel plants(2008/2/14)

To secure smooth transportation of coal, electricity and oil, and to wash out the outdated capacities in iron and steel and cement industries, economy commission of Anhui Province issued a notice, asking electricity department to stop the electricity supply to high pollution and high energy consuming small plants from 1st Feb, including the first and the second batch of outdated iron and steel capacities to be demolished, and the capacities should be but had not been washed out according to national policy by the end of 2007. Meanwhile, the electricity supply to the capacities to be demolished by June will be limited.
Accordingly, the electricity supply of 272 small iron and steel plants and cement companies had been cut off by the end of 1st Feb.

Sichuan urges to cut electricity supply for steel producers(2008/2/01)

Sichuan provincial government published an urgent notice on January 28 to suspend or restrict electricity supplies to eight heavy energy consumption sectors including steel, ferroalloy (including industry silicon), electrolytic aluminum, zinc smelting, calcium carbide, sodium hydroxide, phosphorus and cement. Since December 2007, most coal mines in the province have shut down for maintenance, coupled with deteriorated weather of cold rain and snow, power supply has become extremely tight in the region.
In order to ensure an overall supply target of at least 70,000 t/d of coal during the Spring Festival, 698 mines in the province are required to be under operations during the Festival with daily output of 126,000 tons on average.

Big iron ore deposit discovered(2008/1/30)

Geologists have discovered an iron ore deposit estimated to be at least 1 billion tons in northeast China's Liaoning Province after more than two years of exploration, local authorities said on Thursday.
The newly-found deposit, between 1,280 meters and 1,500 meters underground, is at the Pingshan District, Benxi City, said Wang Wenqing, deputy head of the Liaoning Provincial Survey Academy of Geology and Mineral Resources.
"We plan to spend two to three years finding out the actual reserves," Wang said.
"But we will have to wait even longer before we can start excavating."
Initial exploration shows that the iron ore is mainly hematite or magnetite, and the average iron content is 34.68 percent, said Yu Wenli, head of the Liaoning Provincial Bureau of Geology and Mineral Resources Exploration.
"The deposit can be exploited for more than 30 years," he said

MOC issues expiration notice on anti-dumping measures(2008/1/28)

According to the Article 48 of the Regulations of the People's Republic of China on Anti-dumping, the period for the levy of an anti-dumping duty and fulfillment of a price undertaking shall not exceed 5 years. However, the period for the levy of the anti-dumping duty may be extended as appropriate if, as a result of the review, it is determined that the termination of the duty would be likely to lead to continuation or recurrence of dumping and injury.
Any domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry may make a written application to MOC for an anti-dumping investigation 90 days before the deadline of anti-dumping cases. The application letter shall contain sufficient evidence to prove possible continuation or recurrence of dumping and injury as a result of termination on anti-dumping duties.
If domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry do not make written applications and MOC does not initiate expiry review on the anti-dumping investigations prior to the deadline, the former cases will be terminated by the time of expiry date.
Attachment:

Hebei will construct the largest H section base in China(2008/1/28)

The H-section line in Jinxi Iron and Steel Company Ltd, with a capacity of 1.50 million tons per year, is the most advanced line in the world, whose products are sold to 15 counties and areas including Japan and South Korea. Till March 2008, in order to better the industry structure, Jinxi Iron and Steel will invest 2.6 billion Yuan to construct another medium H-section project. Therefore the largest H-section steel production base will emerge in Hebei Province till then.

Guangdong to eliminate 4.5 million tons of obsolete steel capacity in 2008(2008/1/23)
Guangdong Province eliminated three million kw of small thermal power stations, dismantled 17 small steel plants with outdated steel capacity of 500,000 tons, closed 93 cement lines with outdated capacity of 8.82 million tons in 2007.
In 2008, the province will continue to reduce emissions of SO2 and COD by 4% and 3.5% respectively and eliminate obsolete steel capacity of 4.5 million tons, outdated cement capacity of 10 million tons and shut down 3.85 million kw of small thermal power stations.

China auto sales likely to hit 10 mln in 2008(2008/1/22)
Chinese auto sales were likely to hit or surpass 10 million units in 2008, Cai Weici, vice chairman of China Machinery Industry Federation (CMIF) forecasted on Monday.
Official figures revealed that the country turned out 8.88 million automobiles in 2007, 22.02 percent more than the previous year, surpassing the eight million prediction made at the beginning of 2007.
Aggregate auto sales volume stood at 8.79 million, up 21.84 percent year on year.
Experts ascribed the robust sales growth to increasing market demand, as a recent survey by the State Information Center revealed more than 10 million Chinese households wanted to buy private cars soon. This was boosted by rising incomes and falling car prices.
The country is also stepping up its research and development of clean energy vehicles, including electric, fuel cell and hybrid automobiles, as energy saving and environmental protection has become a key concern of the country, said the CMIF.
Commercial vehicle output volume stood at 2.50 million, up 22.21 percent compared with the previous year and passenger vehicle numbers topped 6.38 million, up 21.94 percent year on year. This is the first year that the growth rate of commercial vehicles has surpassed passenger vehicles, according to the association.
Association statistics revealed domestic manufacturers had released nearly 90 new models onto the market last year.

The Ministry of Commerce publishes Circular of the first Batch of Export Quotas of Coke in Ordinary Trade in 2008(2008/1/18)
The Ministry of Commerce published Circular of the first Batch of Export Quotas of Coke in Ordinary Trade in 2008 as follows, according to the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods.
1. The first batch of export quotas of coke will be granted to the enterprises that meet application conditions for export quotas of coke in 2008. The quota arrangement will mainly refer to actual export performance of each enterprise during the period from 2005 to November of 2007 and properly take into consideration of export amount in each enterprise.
2. Local authorities in charge of commercial affairs should inform of local enterprises the Circular, closely monitor export situations and report relative matters to the Department of Foreign Trade of the Ministry of Commerce.


The Ministry of Commerce
January 15, 2008

Laiwu closes 530,000 tons of obsolete steel capacity(2008/1/17)
As one of the eight cities who had agreed to close and eliminate outdated steel capacity in Shandong Province, Laiwu has entirely completed the targets to eliminate obsolete steel capacity of 530,000 tons, easing resources and environment pressures in the city.
Laiwu shut down one 3-ton electric furnace in Laiwu Rolling Steel Plant in 2005, eliminating 100,000 tons of outdated steel capacity, closed one 4-ton electric furnace in Jiuyang Industry Group in December 2005, eliminating 180,000 tons of steel capacity, closed one 106-cubic meter blast furnace in Quancheng Foundry Plant in March, 2007, eliminating 150,000 tons of outdated ironmaking capacity and dismantled two 5-ton electric furnaces in Rongxing Rolling Steel Plant, washing out 100,000 tons of steel capacity.
　

Hubei Province to eliminate 2 million tons of outdated capacity（2008/1/14）
Hubei Province has signed responsibility letter to eliminate 4 million tons of outdated capacity by 2010, including 2 million tons to be washed out in 2008. “Small steel facilities” in the province focus on Erzhou, Daye and Huangshi.
　

An iron mine with a reserve of more than 1 billion tons discovered in Liaoning Province（2008/1/10）
Geological Survey department of Geology Exploration Office in Liaoning Province discovered a large iron mine in Dataigou, Pingshan District, Benxi City, which has an estimated reserve of more than 1.0 billion tons. And the iron ore is hematite (magnetite), and the iron content is averaging 34.68%.
　

Outdated iron, steel smelting capacity reduced（2008/01/04）
China has eliminated 29.4 million tons of outdated iron smelting capacity and 15.21 million tons of outdated steel smelting capacity by the end of November, the National Development and Reform Commission (NDRC) said on Thursday.
"Eliminating backward iron and steel production capacities will help the country realize its environmental protection and energy-saving goals and facilitate the industry's restructuring," said NDRC Minister Ma Kai at a national iron and steel industry conference.
After the State Council, China's cabinet, held a teleconference on energy-savings in April, the NDRC signed obligation contracts of cutting iron and steel smelting capacity with 10 provinces, autonomous regions and municipalities, included Beijing, Hebei, Shanxi, Henan, Jiangsu, Shandong, Zhejiang, Jiangxi and Xinjiang, where the country's outdated iron and steel production capacities were mostly concentrated. This involved 344 iron and steel makers.
Four provinces, namely Zhejiang, Jiangxi, Henan and Shandong, had fulfilled their targets by November.
Shanxi, which shouldered the heaviest task of iron production capacity reduction in the first batch of 10 provincial-level regions, had completed 90 percent of its 10 million-ton quota.
The NDRC, the country's top economic planner, signed the second batch of obligation contracts with 18 provinces, autonomous regions and municipalities on Thursday to eliminate 49.31 million tons of outdated iron smelting capacity and 36.1 million tons of outdated steel smelting capacity. This involved 573 enterprises and included Baosteel, the country's biggest iron and steel manufacturer.
China decided to reduce energy consumption per unit of gross domestic product (GDP) by 20 percent by 2010, and to build the country into an energy-efficient and environmentally-friendly society.
However, energy consumption per unit of GDP fell only 1.23 percent last year, less than one-third of the average annual goal of 4 percent.
"Although the project of shutting down those outdated iron and steel smelters has achieved tangible results, there are still arduous tasks on the way ahead," Ma said.
The NDRC launched the "Top 1,000 Enterprise Energy Efficiency Action Plan" in September. This required the country's 1,000 largest domestic enterprises in iron and steel, petrochemical and other sectors to meet global energy efficiency requirements and to save 100 million tons of standard coal by 2010.
In a similar development, water consumption for each 10,000 yuan (1,368 US dollars) of value-added industrial output fell 8.9 percent to 154 cubic meters in 2006 compared with the previous year, the NDRC revealed.
　

NDRC inks responsibility letter with 18 provinces(2008/01/02)
The National Development and Reform Commission director Makai said in a working conference that as of the end of November, the provinces who had signed responsible letters for the first batch have closed and eliminated outdated pig iron capacity of 29.4 million tons and steel capacity of 15.21 million tons. Zhejiang, Jiangxi, Henan and Shandong provinces have entirely completed tasks in accordance with the responsible letters. Shanxi has eliminated 9 million tons of pig iron capacity out of 10 million tons required and meanwhile phased out 11.95 million tons of unlisted pig iron capacity in the letter. Shougang will also close 4 million tons of iron and steel capacity by the end of this year.
According to the responsible letters signed for the second batch, the country will close and eliminate 49.31 million tons of pig iron capacity and 36.1 million tons of steel capacity concerning 573 enterprises by 2010. During the first 10 months, composite energy consumption per ton in the key medium and large steel producers was 624.4kg standard coal, down 2.32% year-on-year, consumption of fresh water per ton was 5.46 tons, down 16.24%, SO2 emission declined by 0.4%, emissions of industrial soot and dust reduced by 2.78% and 3.11% respectively. The conference said it was even harder to eliminate 89.17 million tons of outdated pig iron capacity and 77.76 million tons of steel capacity, especially to close and wash out 37.06 million tons of pig iron capacity and 38.2 million tons of steel capacity within 2007.
The conference has mapped out tasks for the next stage as followings: to enhance awareness, to strengthen market roles, to implement target responsibility, to persist in administration according to the law, to improve policy measures, to build linkage mechanism, to maintain social stabilization and to intensify supervision and inspection.
　

Wuhai City in Inner Mongolia starts dismantling four small steel plants(2007/12/27)
Wuhai City in Inner Mongolia has eliminated cement kilns of 150,000 tons and coalmine of 30,000 tons in 2007. The city shut down two 12,000kw machines as first phase at Haibo Bay in early 2007, closed 100,000kw machines as first phase at Haibo Bay each in April and July. On December 15, four steel plants were ordered to close by the year-end, suggesting the city having entirely completed tasks of eliminating outdated capacity this year ordered by the Autonomous Region.
　

Hebei strengthens efforts to eliminate outdated steel capacity(2007/12/25)
The Provincial Development and Reform Commission of Hebei ordered this April to eliminate 3.98 million tons of outdated pig iron capacity and 5.19 million tons of steel capacity by the end of 2007. It was understood that the province has so far completed the target of shutting down steel capacity and eliminated 2.6 million tons of pig iron capacity with 1.38 million tons to be closed by the year-end.
Four measures have been put forward to make sure to complete those targets before the deadline.
To strengthen supervision and inspection;
To compulsively cut power supply to the outdated capacity from January 1, 2008;
To intensify differential electricity fee policy;
To announce the third batch of enterprises running outdated facilities.

Jiugang plans to produce steel 8.00 million tons in 2008(2007/12/25)
According to Jiugang Group, as a major state-owned and province-belonged steel company, Jiugang has played an important role in Gansu Province’s economy and society development. To realize the targets set by “11th Five-Year” plan, and secure the company’s sustainable development, Jiugang plans to produce 8.00 million tons of steel, and realize operating income 35.0 billion Yuan and profit 1.2 billion Yuan in 2008.
　

Shaanxi requires outdated steel facilities to be dismantled(2007/12/20)
Shaanxi Province will strengthen the efforts to shut down and eliminate outdated capacity in the local steel industry, according to sources from the Provincial Development and Reform Commission of Shaanxi. To prevent outdated facilities from avoiding eliminations, the removed facilities are required to be dismantled as ferrous raw materials. Outdated small blast furnaces are not required to transform production of casting pipe and ferroalloy.
Enterprises that failed to meet emission standards will be ordered to suspend operations immediately by the Environmental Protection departments and those failed to eliminate outdated capacity will be withdrawn their business licenses by the Industry and Commerce Departments or be revoked their production permits by the Quality Assurance Departments. Furthermore, power and water supply departments must take measures to cut electricity and water supply for those companies to force them to retreat from the market.
　

Guizhou to eliminate 121 heavily energy consuming enterprises in late 2007(2007/12/18)
Guizhou Province has decided to eliminate outdated capacity in 121 heavily energy consuming enterprises in the field of steel, ferroalloy and cement in late 2007. In 2007, 172 enterprises in the province have been required to address or rectify pollution related problems within certain period. The first bath of 19 heavily energy consuming enterprises that had been eliminated has reduced 3,108 tons of Chemical Oxygen Demand (COD) and 1,189 tons of SO2. Furthermore, the province has shut off all mini thermal power units below 65 MV.

Tianjin Port becomes the major port for unloading metal ores, coal and other materials（2007/12/17）
From Jan to Nov, Tianjin Port, which loads and unloads metal ores, coal, crude oil, iron and steel and so on as the main materials, had a throughput of 291,568,000 tons, increasing 22.7% from that of the same period in 2006; while loads and unloads 6,489,000 containers, increasing 20.4% with the same comparison. In the breakdown, 156,625,000 tons were shipped overseas, increasing 21.9% from that of the same period in 2006; while 4,819,000 containers were shipped outside, up 23.4%. During the first eleven months, Tianjin Port had a throughput of 48,199,159 tons of metal ores, increasing 19%; 70,893,101 tons of coal, up 35.5%; 25,754,323 tons of crude oil, up 20.2%; 30,652,774 tons of steel, up 49.4%.
Entering 2007, Tianjin Port continuously improves the business results and increase the gross income of the port. With the increases in shipment of metal ores, coal, crude oil and steel, the throughput of materials in Tianjin Port keeps going up. Till now, Tianjin Port has formed trade relations with more than 400 ports in 180 countries and areas in the world, and lines tops 100, which contributes to the increase in throughput.
Meanwhile, 250,000 tons waterway project phase one, bulk materials trade center, Alliance international wharf were completed and launched operation, Dongjiang bonded wharf project phase one, Global roll on/roll off wharf project and Europe Asia international container wharf project are moving on smoothly. In the period of the policies “North Coal South Transferring” and “South Bulk North Container” are being implemented, Tianjin Port takes the advantage of specialized berths and coal transportation line, focuses on larger ships and special technologies, and improves the efficiency and services, winning customers and ship owners’ approval.
The formal agreement of allied operation with Tianjin Bulk Materials Trade Market was signed. and the market mainly involves in ores, coal, coke and crude oil. Covering an area of 26.8 square km, Tianjin Port Nanjiang Bulk Materials Center has become a multifunction logistic center including bulk materials’ loading and unloading, transporting, processing and delivery and information service and so on. The market will contribute to improving Tianjin Port’s service, and helping increase the gross income.

The iron and steel industry in Hebei Province realized income 445.3 billion Yuan during the first ten months（2007/12/17）
According to Iron and Steel Association of Hebei Province, from Jan to Oct 2007, the iron and steel industry in Hebei Province gained an income of 445.351 billion Yuan from the main business, increasing 42.38% from that of the same period in 2006; and realized revenues 42.436 billion Yuan, up 35.28%; and profits 25.875 billion Yuan, up 33.27%. Meanwhile, the iron and steel industry in Hebei Province completed investment of 27.428 billion Yuan on fixed assets, down 0.4% comparing with that of the same period in 2006, keeping minus increase for eight months in line since the beginning of 2007.
According to Song Jijun, vice chairman of the association, the data shows that the market demand kept strong since entering 2007, domestic demand maintained up trend, and the market is still rising. In general, iron and steel industry had a much higher profit, and the increases in income from main businesses, revenue and profit were higher than these in production costs.
But, on the other hand, due to the continuously rising prices for raw materials and fuels, the speed of profit increase of iron and steel companies in China slow down by month, and the profit to sale income ratio came to decrease since June. In Feb 2007, the profit to sale ratio for iron and steel companies in Hebei Province was 5.64%, and it came to peak in May (6.29%). Since then it keeps on declining, and it was 5.81% in Oct.
　

China to implement limitations on energy consumption(2007/12/14)
Approved by the Standardization Administration of China, compulsive national standards about limitations on unit energy consumption for nine products including crude steel will come into effect from June 1, 2008, according to sources from the General Administration of Quality Supervision, Inspection and Quarantine. This is the first time in China to change the standards of energy consumption from ‘ration’ to ‘limitation’. The new regulations cover nine major sectors such as crude steel, caustic soda, regular coal-burned generation, copper smelting, zinc smelting, lead smelting, nickel smelting, cement and construction sanitation pottery.
By the end of the 11th Five-Year Plan, China’s energy consumption of production value per 10,000 yuan will be reduced by 20%. Some 20% enterprises and lines in the cement, construction sanitation pottery sectors and so on could be eliminated because of their incapability to meet the new standards.
　

Growth of steel exports in Guangdong eases in the Jan.-Oct. period(2007/12/13)
Guangdong’s exports of steel products were 2.245 million tons during January to October of 2007, up 27.4 year-on-year with a fall of 17.2 percentage points and export value was $1.92 billion, up 66.9%, according to sources from the Huangpu Customs.
The statistics showed the growth of steel exports in the province has slid all the way since February this year and the trend was exacerbated month after month from July because of changes in export rebate policies. In October, Guangdong exported 130,000 tons of steel products, down 53.7% year-on-year and 24.3% from a month earlier. The main destinations were Hong Kong, ASEAN and EU.
The Central Government has issued macro regulation policies on steel exports for four times since early this year in a bid to curb the rapid growth of steel exports, quicken up consolidation in the steel industry and advance structural adjustment and optimization in the industry.
These regulations have further played into effect as the sharp rises in China’s steel exports slowed down to some extent from July. However, a fever of exports was still driven by excessively high expectations in the demand from the international market and export prices seemed to hike in short term thanks to higher imported iron ore costs and rising ocean freight rates.
　

Gulf countries' demand for China steel surges(2007/11/29)
Demand for China's steel products jumped drastically in Iran, the United Arab Emirates and Syria as the Gulf countries spent "petrol dollars" on infrastructure construction, said UBS analyst Tang Xiaobo in a report on the country's steel industry.
In the first seven months, steel exports to Iran rocketed 22-fold to 2.3 million tons compared to the same period a year ago. Exports to the UAE increased 2.96 times to 1.3 million tons, and to Syria by 6.59 times to five million tons, the UBS report said quoting Chinese customs data.
The surge in tonnage correlated with a drop in prices for steel exports to Gulf countries as demand from the crude exporters was mainly for cheaper steel used in construction, such as reinforced steel bars, long steel and steel wire rods.
The European Union, South Korea and the United States remained the three top foreign buyers of Chinese steel. In the first seven months, EU consumption rose 125 percent, while the US consumption was down 2.7 percent.
Chinese steel exports jumped 73.2 percent to 49.52 million tons in the first nine months, according to a China Iron and Steel Association report.
The association also urged the State Council to rationalize the industry around the top four makers in a bid to develop world-scale companies.
Luo Bingsheng, CISA secretary-general, said that "all the difficulties in the steel industry are directly or indirectly related" to the slow pace of mergers and acquisitions.
He said that reorganization of the industry should be based on the top four companies - Baosteel Group, Anshan-Benxi Steel Company, Shougang-Tangshang Steel Company, and Wuhan Iron and Steel Group Corporation.
While China's steel industry has been decentralizing, its competitors abroad have been banding together.
In July 2006, Mittal Steel acquired Arcelor to form the first 100-million-ton-year steel maker. In February 2007, India-based Tata merged with Corus to form the world's fifth largest steel mill.
Earlier this month, the world's largest mining company, BHP Billiton, proposed to acquire Rio Tinto. If the deal goes through, it is expected to increase the competitive pressure on China's steel industry.(Xinhua News Agency November 28, 2007)
　

Hebei to produce over 100 million tons of steel this year(2007/11/08)
During the first nine months of 2007, Hebei produced 83.61 million tons of crude steel, up 21.58% year-on-year; 79.46 million tons of steel products, up 34.41%; 78.23 million tons of pig iron, up 20.87%; 28.71 million tons of coke, up 28.46% and 21.85 million tons of iron ore, up 32.5%. The growth rates of the above figures were 3.98, 10.41, 5.17, 9.06 and 9.60 percentage points higher than the average growths across the country respectively. Hebei will become the first province in China whose crude steel output will exceed 100 million tons in 2007. What should be underlined is, however, there was not a single producer in the province that was awarded the China Famous Brand Products in 2007.
Profits in the steel makers in Hebei started dropping from July. Profits in 44 key steel makers declined by 12.51 percentage points year-on-year during the first three quarters despite a rise of 5.29 percentage points in main business revenue. Some medium and small producers were on the verge of being unprofitable or even losses from August, quite a few medium and large producers earned less as well. Part of mills in Handan and Tangshan has been forced to close down since the beginning of the fourth quarter.
The main problems in the local industry are: low degree of centralization, lack of leading enterprises in the international market, extensive growth remains unchanged with lower ratio of premium steels, huge amount of outdated capacity, hard works to save energy and reduce emissions, increasingly tight supply of raw materials and lower degree of resources guarantee.
The main tasks to deal with the steel industry in Hebei for the future are: to implement the development strategy of steel industry chain and optimize market structures, to adjust productivity deployment and optimize industrial structures, to implement merge and consolidation strategy and optimize enterprises structures, to enforce “high, premium, special and deep” strategy and optimize products structures as well as to enforce energy saving and emissions reduction strategy and optimize technology and facilities structures.
　

Chongqing intends to demolish outdated 2.30 million tons of iron and steel capacity by 2010（2007/11/06）
According to Environment Protection Office of Chongqing City, from 2007 to 2010, Chongqing plans to demolish 20 tons and below electric furnaces and 300 cube meters and below blast furnaces, which have a capacity totaled 2.30 million tons per year, in purpose of improving the industry structure and the energy utilizing effectiveness.
In recent years, according to the documents by National Reform and Development Commission (NRDC), Chongqing speeded up the demolishment of outdated iron and steel capacity. Through merge, reforming and technology improving, the city has washed out an iron and steel capacity totaled 1.20 million tons, including two 100 cube meters blast furnaces, two 620 cube meters blast furnaces, two 40 tons, two 50 tons and 70 tons open hearth furnaces, 2×15 tons open hearth furnaces, two 18 cube meters and two 27 cube meters sintering machines, and several ranked small section steel rolling machines. Meanwhile, the city strengthened on the control of these small producers of construction steel, and forced 25 steel manufacturers to stop, demolished 17 production lines and 14.5 units of dies, closed 76 medium frequency faradic furnace, with a capacity 1.20 million tons in total.
Therefore, the city has demolished an iron and steel capacity of 2.40 million tons till now, decreasing the emission of sulfur dioxide by 38,400 tons per year.

Shandong to eliminate 6 million tons of steel capacity by late 2007（2007/11/06）
By the end of this year, Shandong Province will eliminate pig iron capacity of 2.48 million tons, steel capacity of 3.71 million tons, coking chambers with height below 4.3 meters. In 2006, the province produced 43.28 million tons of pig iron, 37.14 million tons of steel and 40.88 million tons of finished steel. However, two thirds of the above figures cannot meet the national industry policies with 15% of pig iron capacity and 6% steel capacity even in the scope of outdated capacity to be eliminated within a limit period.
　

Export quotas cut for tin, tungsten and antimony（2007/11/05）
China cut its 2008 export quotas for tin, tungsten and antimony, the Ministry of Commerce said yesterday, as the nation seeks to reduce its trade surplus and meet local demand for raw materials.
The country will allow exports of 33,300 tons of tin next year, the ministry said, down from 37,000 tons in 2007. The export quota for tungsten is 14,900 tons, compared with 15,400 tons in 2007, and for antimony 59,900 tons versus 61,800 tons.
　

Zhejiang closes 15 steel makers with outdated capacity(2007/11/1)
Zhejiang Province has closed 15 steel makers with a total outdated capacity of 1.13 million tons, two months ahead of the deadline stipulated by the central government. The move is expected to save 550,000 tons of standard coal for the province and reduce emissions of dust and SO2 by 2,100 tons and save water of 3 million tons.
　

Inner Mongolia to limit production of calcium carbide and alloy(2007/10/29)
In order to curb disorderly increase in the heavily energy consuming sectors, Inner Mongolia government decided to limit production of calcium carbide and alloy. In 2007, the government will restrict production of calcium carbide and alloy to 5 million tons and 3 million tons respectively and will gradually lower their production in the future.
　

Beijing to clean away 14 inferior industries(2007/10/25)
During the Eleventh Five Year Plan (2006-2010), Beijing municipal government will clean away 14 inferior industries including small sized steel, cement, papermaking, power and mining enterprises. The government will provide one-off financial subsidy for the enterprises being sacrificed by the move to encourage them retreat from backward production links.

Beijings worst polluter promises huge cut in emissions for Olympics(2007/10/25)
A huge steel plant which is Beijing's worst polluter has pledged to drastically cut production next summer so that the 2008 Olympic Games can enjoy better air quality.
Beijing Shougang Group, China's leading steel manufacturer, pledged an output reduction of more than 70 percent from next July to September to ensure the Olympics can enjoy better air quality.
The steel company, built in 1919 and located 17 kilometers west of the Tian'anmen Square, has been the worst polluter in Beijing for years.
"During July, August and September next year, the group will cut its production to less than 30 percent of its normal capacity to help the Beijing government fulfil its commitments to improving air quality for the Olympics," said the group's president Zhu Jimin in an interview with China. com, one of China's online news portals, on Monday.
According to the requirement of the State Council, or the country's cabinet, Shougang will reduce the annual output of 8 million tons at the Beijing plant to 4 million tons at the end of this year. The target output for 2008 is set to be 4.2 million tons.
"This is also what we want to contribute to society and the world," said Zhu.
During the third quarter next year, the group will maintain the monthly output at 200,000 tons, 30 percent of its normal capacity.
In those three months, the company will carry out the minimum amount of production necessary to ensure that the plant and machinery can continue to function.
It has made specific plans for emission control. In 2008, the emissions of soot, dust and sulfur dioxide will be reduced by 50.32 percent, 49.22 percent and 49.18 percent respectively.
"The production is basically suspended during that period, which brings about great economic losses to the group," said Zhu. "But the government may do something to make up for it, such as refunding taxes."
The State Council has promised that all the taxes collected from 2006 to 2009, totaling 3.8 billion yuan (5.7 million U.S. dollars), will be refunded.
As one of the efforts made by the Chinese government to improve air quality, the steel company began in 2005 to relocate its facilities to a tiny island in Hebei Province, some 200 kilometers east of Beijing. The new plant will be completed in 2010.
Beijing's environment watchdog says with Shougang's production facilities gone, city residents will inhale 18,000 tons less particulate matter a year, equivalent to the total emissions of about 100 average-sized manufacturing enterprises.
Shougang produced 12.48 million tons of steel last year, earning it a revenue of 87.47 billion yuan (11.3 billion U.S. dollars).
The group has invested 2.1 billion yuan (about 267 million U.S. dollars) in environmental protection since 1995. The emissions of sulfur dioxide, soot and dust had been reduced by 78 percent, 82 percent and 84 percent in 2006 respectively, compared to those of 1995.
　

Shandong to seriously address pollution emission（2007/10/22）
Shandong Province will seriously address pollution discharge from local steel and coke makers. By the end of this year, the province will eliminate 2.48 million tons of outdated pig iron capacity, 3.71 million tons of steel capacity and all the carbonization chambers below 4.3 meters except stamping coke ovens above 3.2 meters.
During the first half of 2007, unit integrated energy consumption and unit comparable energy consumption at the key steel producers across the province stood at 648kg and 667kg standard coal respectively, down 23kg (3.4%) and 33kg (6%) from the corresponding period last year. Energy consumption of production value per 10 thousand yuan averaged 1.53t standard coal, down 0.16t or 9%. The key medium and large coking enterprises and processes consumed 127kg/t standard coal, down 3.79% and gas emission from coke ovens lowered by 25.98%.
During the Eleventh Five Year Plan, the province will eliminate 10 million tons of outdated steel capacity, 4.3 million tons of coking capacity and close 30 coking enterprises (53 coking ovens) that fail to meet national industry policy.
　

Guangdong eliminated outdated steel capacity(2007/10/17)
Guangdong Province withdrew the curtain to eliminate outdated steel capacity by scraping 16 steel plants (ten in Xingning City, four in Meijiang District and two in Fengshun County) with total capacity of around 350,000 tons in Meizhou City on October 13, 2007.
During the Eleventh Five Year Plan (2006-2010), the province will close and eliminate outdated steel capacity of 10 million tons.
　

Caofeidian: Four deep processing items for steel settled down（2007/10/12）
At a business discussion meeting held at Tangshan City (Caofeidian), Hebei Province in recent days, four projects settled down at Caofeidian New area, involving total investment of 11.5 billion yuan or US$420 million. They are Zhejiang Jincai’s ocean engineering facility item (10 billion yuan), China Petroleum’s ocean engineering base (1.5 billion yuan), Datang Scientific and Technology Industrial Park (US$370 million) and US coal mining and facility base (US$50 million).
All of the four projects are deep processing for steel and facility manufacturing items that meet requirements of the development of key industries at Caofeidian.
　

From Jan to Aug the price of imported iron ore sand in Tianjin port hiked(2007/10/10)
According to the statistics from the custom, from Jan to Aug of 2007, the volume of imported iron ore sand into Tianjin port amounted to 27.69 million tons, with a value totaled 2.19 billion US dollars, increasing 14.5% and 48.2% from those of the same period in 2006. and the average price for imports reached US $79.2 per ton, up 29.4%.
The major reason for the rises is that the supply from domestic can’t meet the continuously increasing demand. In recent years, the housing, home applicants, auto-manufacturing, machinery and other major steel consumers expands the production, the iron and steel output keeps growing at a high speed, therefore the demand for raw materials, iron ore sand maintains at high levels.
According to the sources concerned, there are several problems in iron ore sand import should be paid attention.
First, China lacks power in settling the prices for iron ore in international market. While China has entered WTO in the period of economy’s globalizing, and the iron ore sand market in China has become part of the international market, the prices changes in international market has a greater impact on materials in domestic market. As the largest iron ore importer and consumer, China has a high dependency on imports and lacks power in setting prices, therefore the prices in domestic market has had high rises, and the power in negotiation has been weakened, the concerned companies may face harder situations.
Second, the supply of iron ore is concentrated in international market. Recent years, the iron ore mining industry has had several waves of M&A. Three major companies, Brazilian CVRD, Australian BHP Billiton and Rio Tinto controlled 80% of the global iron ore sand trade. In consequence, the suppliers gained huge profits through driving up the prices at will. On the other side, to maintain the production, the iron and steel companies in domestic have to import iron ore in large volume, giving a boost to the prices hikes.
Finally, the import price hikes have impacted the economy in China. As the largest importer of iron ore sand, the price hikes will shock the iron and steel industry, causing the production costs highly increase and having a negative effect on these companies’ performance in short terms, and weakening the competing ability in international market in long terms. The price hikes in imported iron ore sand will lead the prices climbing in downstream products, lifting the production costs in Auto, home applicants, housing, machinery manufacturing and other industries.
　

The largest tire steel cord production base in China formed（2007/10/01）
After eight months’ construction, capacity expansion plan phase two of Jiangyin Bekaert Alloy Materials Company Ltd launched commercial operation yesterday. Till then, the capacity of steel tire cord in Jiangyin Bekaert increases to 125,000 tons per year, and therefore the company becomes the largest production base in China.
Bekaert Company is a large international company, with its headquarter based in Belgium, and the company has a leading position in developing and manufacturing steel wires, steel tire cords, advanced materials, and also in membrane-plating technology development. The company has a sale income of 3.2 billion Euros per year. In 1992, Bekaert set up its first joint venture plant in Jiangyin with Jiangsu Fasten Group. During the following ten plus years, Bekaert formed Bekaert China Technology Center, Bekaert Jiangyin Steel Wire Manufactures Company Ltd and other companies. With the capacity expanded by the second phase, Bekaert has total capacity of 250,000 tons in China.
　

China may work out more restrictions to curb steel export(2007/09/25)
China may come up with more restrictions to curb steel exports, including imposing licenses to export companies, restricting steel projects in the processing sector, a senior official with the country's top economic planner said recently.
Restricting steel export will still be the tendency and China would reduce its steel production to avoid overcapacity, said Hu Chunli, a senior official with China's National Development and Reform Commission.
China has already taken six measures to discourage steel export and export rebates for many steel products had been lowered to zero while tariff for some steel products also reached 15 percent.
According to the latest statistics released by China Customs, the country's steel products exports stood at 5.38 million tons in Aug., down 9.4 percent over last month.
However, in the first eight months, China's steel and steel billets exports still jumped by 83.8 percent and 10.9 percent to 45.08 million tons and 5.61 million tons.
Strong demand in the international market, high profit of exporting and weak influence of curbing policies are the main reasons for the increasing exports.
"As long as the steel export generates more profit, Chinese enterprises will still expand their exports." Hu said.
Along with the declining investing in the steel sector, implementation of reducing emission and energy saving and new curbing policies, steel export will finally go down, he said. (Xinhua News Agency September 22, 2007)

Works to close and phase out outdated capacity obtained stage progress(2007/09/24)
According to National Development and Reform Commission, China had closed and phased out outdated pig iron capacity of 11.4 million tons and steel capacity of 8.7 million tons as of the end of July and works to close and phase out outdated capacity obtained stage progress.
NDRC will soon sign second batch of Letter of Responsibility with 18 provinces (Autonomous Region and cities) to scrap outdated pig iron capacity of 30 million tons and steel capacity of 35 million tons within the year, contributing to energy saving and discharge reducing target.
　

Higher Costs Slow Profits Growth of Major Steel Makers（2007/09/17）
Profits growth of China's major steel companies have slowed a little as the coal and iron ore prices crept upward, according to the China Iron and Steel Association (CISA).
Net profits of the nation's 77 large and medium-sized steel firms soared by 91 percent year on year to 91.5 billion yuan (US$12.2 billion) in the first seven months, said Zhang Changfu, deputy head of the CISA.
Their profits hit 78.3 billion yuan in the first half, 108.8 percent up from the same period a year ago.
Combined sales of the 77 producers rose 35.3 percent to 1.1 trillion yuan from January to July, he said at at a forum held in Baotou, northern China's Inner Mongolia Autonomous Region.
Six of the producers reported losses of 132 million yuan, down 61.2 percent from the same period last year.
Zhang noted the steel sector was facing higher costs as prices of coal and iron ore continued to rise. Production costs jumped 8.34 percent in the first six months.
The cost, insurance and freight price of iron ore averaged US$74.64 per ton during the first half, US$13.23 higher than the same period last year, he said.
The iron ore price hikes alone added additional costs of 18.89 billion yuan to the steel sector as China imported 187.9 million tons of iron ore in the first six months, said Zhang.
　

The stainless steel production amounted 3.50 million tons in the first half(2007/09/12)
The stainless steel production in China during the first half of 2007 amounted to 3.50 million tons, increasing 54% from that of the same period in 2006; while the imported stainless steel totaled 956,500 tons, decreasing by 25.45% with the same comparison; and the exports totaled 833,800 tons, up 224.44%. The ratio of domestic production in the consumption reached 70%, marking a fundamentally turn from dependency on imports to domestic production.
In 2006, the stainless steel consumed per capital in China was 4.6 kg, which had an increased in the first half of 2007, coming to a level near the world average.
　

NDRC announced list of enterprises with backward steel capacity that have been phased out in the first half of the year（2007/09/10）
National Development and Reform Commission announced list of enterprises with backward steel capacity that have been phased out in the first half of the year.
During the 11th Five-Year Plan period, backward capacities to be closed and eliminated in 10 provinces and cities such as Hebei and Shanxi include 39.86 million tons for pig iron and 41.67 million tons for steel and involve in 344 enterprises. Among which those should be closed within this year include 22.55 million tons for pig iron and 24.23 million tons for steel.
So far, the first batch of 10 provinces and cities that had signed Responsibility Letter have closed and eliminated backward pig iron capacity of 9.69 million tons and steel capacity of 8.73 million tons, completing 43% and 36% tasks set this year. Besides, Shanxi Province phased out on its own backward pig iron capacity of 2.98 million tons that were not required by the Letter and Magang that does not appear in the list closed five 300m3 blast furnaces with total capacity of 1.75 million tons.

Rigged Steel Price Hikes Warned（2007/09/10）
China's top economic planner said on Thursday efforts should be made to curb "drastic fluctuations" of domestic steel prices which have been rising for seven consecutive weeks.
The National Development and Reform Commissions (NDRC) said the domestic demand and export of steel products should be controlled. It warned against coordinated actions to bid up the prices of steels.
According to the nation's market watchdog, the average price of four types of major steel products rose by 17.8 percent to 4,358 yuan (573.4 U.S. dollars) last week compared with the same period of last year.
Surging domestic demands, a slight decline in supplies and soaring iron ore price have contributed to the recent price hikes of steel products, said the NDRC.
China's fixed assets investment in urban regions rose by 26.6 percent year-on-year to 5.67 trillion yuan (747 billion U.S. dollars) in the first seven months this year. Investment in real estate sector reached 1.21 trillion yuan, up 28.9 percent.
While the supply of steels dropped by 5.3 percent in July over the previous month due to suspension of production in some areas out of concerns of energy saving and production safety.
The price of iron ore produced in north China's Hebei Province went up by 80 percent to 1,097 yuan (144.3 U.S. dollars) per ton compared with last year.
The economic planner also pointed to high flying international steel prices, rumors about future price hikes and illegal operations of some producers and sellers.
Factories could resume production with easing power shortages in autumn, which would increase the supply, said the planner. But the commission still called for intensified measures to reign in fixed assets investment, stricter control over steel export and closer watch over the market.
China became the world's No. 1 steel exporter in 2006, triggering frequent disputes with its trade partners in the U.S. and the EU.
(Xinhua News Agency September 7, 2007)
　

Iron Ore Imports Likely to Slow Down(2007/09/07)
China's iron ore imports are expected to increase at a slower pace because of rising domestic supply and decline in the growth of steel output capacity, say industry insiders.
The country's import of iron ore rose to 187.9 million tons in the first six months this year, up 16.46 percent year-on-year. Australia continues to be the biggest exporter to China, accounting for 37.95 percent of the country's total imports, followed by India, Brazil and South Africa.
The output of large and medium-sized mines in China rose 29.28 percent to 321.28 million tons in the first half while the output of small mines was around 50 million tons.
"The large scale of mining by domestic steel companies is expected to curb further rises in ore prices," said Chen Xianwen, an official from the China Iron & Steel Association (CISA) at the International Iron Ore Market Seminar in Shanghai yesterday.
"The domestic demand for iron ore is expected to increase around 70 million tons this year. Apart from the domestic output growth, of around 40 to 45 million tons, we need only 30 million tons more from overseas, which rose only 9 percent from last year," said Zou Jian, chairman of the China Metallurgical Mining Enterprise Association, at the seminar.
"Large drops are expected in steel prices in 2009 because of the projected slowdown of world economic growth."
China's crude steel output rose only 14.64 percent in June, dropping 11.44 percentage points from January. "The output is expected to increase slower, which may lead to a shrinkage in iron ore demand," said Zou.
However, mainland steelmakers continue to be under price pressure because of the soaring transportation cost of iron ore.
"Transportation cost has become a key factor," said Liu Yongshun, director of APAC Resources Limited, who has been a Baosteel representative in iron ore negotiations in past years.
The average CIF (cost, insurance and freight) prices rose 21.54 percent to $74.64 per ton in the first half of this year, much more than the rising pace of FOB (freight on board) prices.
Chen Haoran, chairman of the China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters, said: "Besides some factors like monopoly of the iron ore market by the three largest producers, the rising ore price is just a reflection of the market need."
Ore supply is expected to increase massively worldwide. Brazil's CVRD, the world's largest iron ore producer, is expected to produce 300 million tons of iron ore this year. RioTinto and BHP Billiton, two big exporters to China, are also expected to expand their capacity to 300 million tons in the years to come, according to the CISA's Chen.(China Daily)
　

China sees balanced demand, supply of coal(2007/09/05)
China's supply of coal largely managed to meet domestic demand in the first half of this year, sources with the National Reform and Development Commission said on Sunday.
The top economic planning agency estimated between January and June, 1.26 billion tons of coal were produced nationwide, a growth of 10.1 percent over last year. The growth rate in the first half year was 2.5 percentage points higher than the growth of entire last year.
The total included 1.08 billion tons of raw coal by major enterprises, up 11.4 percent.
Thanks to state policy for restricting coal export and encouraging import as well as appreciation of Renminbi, China turned from a net exporter to a net importer of strategic resources in the first half-year.
In the six-month period, China imported 27.07 million tons of coal, up 47.6 percent, and exported 23.12 million tons, down 27.9 percent.
The net imports stood at 3.95 million tons, as against a net export volume of 13.74 million tons for the same period of last year. This increased the total coal supply by 17.69 million tons.
In terms of demand, fixed-asset investment kept rising and major coal-consuming products had their output grow rapidly in the first six months.
From January to June, the economic planning agency estimated, approximately 1.263 billion tons of coal were consumed nationwide, up 12.2 percent. The growth rate was two percentage points higher than that for the whole of last year.
　

China mulls curbs on coke export（2007/08/17）
China, the world's biggest coke producer and exporter, is considering new curbs on overseas shipment of the fuel used to make steel, as part of its efforts to reduce pollution at home.
Hou Shiguo, an official from the National Development and Reform Commission, China's top industry watchdog, told China Daily the government is likely to further up tariffs on coke exports in the second half of this year.
The government is also considering cutting coke export quotas for trading firms and raising the qualification for the business, Hou said.
But he did not reveal the details of these new measures.
On June 1, China lifted the tariff on coke exports to 15 percent from 5 percent in a bid to rein in overseas shipment.
January-July coke exports jumped 20.1 percent year-on-year to 9 million tons, boosted by strong demand and prices in the international market, according to Customs data.
"We should not ship so much coke abroad at the cost of our environment as the sector is highly polluting," Hou said.
China has granted two batches of coke export quotas totaling almost 13.3 million tons so far this year.
Huang Jin'gan, president of the China Coking Industry Association, predicted 2007 coke exports would reach 15 million tons, up from 14.5 million tons last year.
In the first six months of this year, coke production in China grew 21 percent to 156.8 million tons. Huang said full-year production will hit 320 million tons, up from 298 million tons in 2006.
China has a total coking capacity of 360 million tons. A new 10-million-ton capacity will be put into operation in the second half of the year, according to the market buzz.
But Hou said the government will raise the doorsill for new investment in the sector and speed up elimination of outdated capacity to ward off a domestic glut.
Some 80 million tons of obsolete coking capacity will be removed from 2006 to 2010, according to an earlier government plan.
Huang said coke producers should "watch the market closely" and prevent excessive production growth as demand for the material is likely to slow down in the second half because of slackening steel production.
In the first half, coke consumption in China rose 21.5 percent to 148.8 million tons.
Crude steel production in the country, the world's top manufacturer of the metal, is expected to grow by 14 percent to 480 million tons this year, down from 19 percent in the first six months.
(Source: China Daily)

12 companies in Shandong Province were forced to close due to inefficient capacities（2007/08/15）
The metallurgy industry is one of the key industries in Shandong Province to implement the energy-saving and emission-decreasing policy. Till now, 12 out of the 17 companies listed to be closed have been shut down, due to the inefficient capacities.
In the first half of 2007, the increase rate of energy consumed by key iron and steel companies fell 3.5 percent comparing to that of the steel production, the energy consumed per 10,000 Yuan of production value averaged 1.53 tons standard coal, down 0.16 tons (9%).
　

The “11th five-year ”plan for metallurgic industry in Shanxi Province: to demolish 80% of the iron and steel companies（2007/08/13）
According to the “11th five-year ”plan, from 2006 to 2010, metallurgic industry in Shanxi Province will make a great progress on metallurgy industry concentration, structure adjustment and companies’ merging, with the number of iron and steel companies declining from current 370 to 60 or so.
First, Shanxi province is to demolish these obsolete capacities, and to lift the metallurgy industry’s concentration. During the 11th five-year period, according to the industry policy, the province will demolish the iron smelting blast furnaces of 300 cube meters or less, steel melting converters and electric furnaces of 20 tons or less, and then through capacities replacement and companies reforming, constructing new iron and steel projects meeting the national standards, bring the number of iron and steel companies in Shanxi Province down to 60 or so from 370 at present, forming several iron and steel company combinations and high quality special steel production bases with a capacity of 5.00 million tons or above, centering the capacities and realizing the synergy of iron, steel and finished steel.
Second, the province is to improve the structure of steel types. China has published the policy for iron and steel industry development, which is targeting at lifting the ratio of high quality iron and steel products, ensuring majority of the products meeting the requirements of most industries, including construction, machinery, chemistry, automobile, home applicants, shipbuilding, transportation, railway, military and new emerging industries. Accordingly, Shanxi Province will strengthen the adjustment of steel types, and focusing on developing silicon steel, new structure steel for construction and auto steel and so on.
Third, the province is to boost the iron and steel companies’ reform, to improve the industry structure. By more favorable policies and strengthening the coordination, Shanxi Province will encourage the local iron and steel companies to unit and reform, and attract the companies from outside to purchase local companies or shares, then participate in the technology upgrading.

Gyms of 2008 Olympic Game all used homemade steel(2007/08/10)
At the 3rd session of the second standing council (extended) meeting for China Iron and Steel Association held recently, 9 enterprises received praise for the contribution in the construction of gyms for 2008 Olympic Game. They included Baoteel Group Co., Ltd, Wuhan Iron and Steel Co., Ltd, Angang Co., Ltd, Hangang Group Wuyang Iron and Steel Co., Ltd, Jinan Iron and Steel Co., Ltd, Shougang General Corporation, Xinyu Iron and Steel Co., Ltd, Tianjin Steel Pipe Group Co., Ltd. and Nanjing Iron and Steel Group Co., Ltd.
Party Secretary and Vice Chairman of CISA, Liu Zhenjiang said structural construction in gyms for 2008 Olympic Game will all consume homemade steel, which meant not only China’s steel output is well above No.1 across the world, but also the range and quality enhance greatly through persisting efforts by several generations, and meets and supports requirement of national economy in various industries.
　

Inner Mongolia stops giving approval to iron and steel and other high energy-consuming projects（2007/08/08）
According to Economy Commission of Inner Mongolia Autonomous Region, to reach the targets for costs-declining and energy-saving, Inner Mongolia decides to stop giving approval to high energy-consuming projects, including ferroalloy, calcium carbide, cement grog, electrolyzing aluminum, iron and steel, coke, paper making, glass manufacturing, corn pre-processing and lignite project without further processing, and so on.
Meanwhile, the government of Inner Mongolia has begun to clean out the projects under construction, which doesn’t meet the nation’s policies; and the government doesn’t give permission to those fixed asset investments before the energy consumed per unit of the product down to the limit. Besides, the government has been strict with the system for evaluating new projects’ energy saving, and impacts on environment and the licenses awarding, setting a accountability system.
　

Responsibility letter to be signed to phase out second batch of backward capacity（2007/08/02）
Deputy vice President and Secretary General of China Iron and Steel Association, Luo Bingsheng said yesterday the process is being advanced actively to phase out second batch of backward steel capacity, and provinces and cities concerned will soon sign responsibility letter with National Development and Reform Commission.
The State Council held conference about closing and eliminating backward steel capacity on April 27, on which NDRC signed responsibility letter to close and eliminate first batch of backward steel capacity with ten provinces (Autonomous Regions and Cities) including Hebei.
On May 31, NDRC held symposia to study and arrange works about signing Responsibility Letter on Closing and Eliminating the Second Batch Backward Steel Capacity with 18 provinces including Tianjin as well as Baosteel Group.
　

The 3rd Session of the Second Standing Council Extended Meeting of China Iron and Steel Association held at Beijing(2007/07/31)
The 3rd Session of the Second Standing Council Extended Meeting of China Iron and Steel Association was held this morning at Beijing. The attendees included President of CISA, Zhang Xiaogang, Adviser Wu Jianchang, President of China Metal Society, Weng Yuqing, Party Secretary General and vice President of CISA, Liu Zhenjiang, Deputy vice President and General Secretary of CISA, Luo Bingsheng and representatives from the members.
The meeting contented following agendas: Zhang Xiaogang made a speech; Liu Zhenjiang announced Decision on Commending Steel Producers Contributing to the Gymnasiums Construction for the 29th Olympic Games; Luo Bingsheng made working report about Sticking to Energy Saving and discharge Reducing Policy and Advancing Structural Adjustment of Steel Industry and Transformation of growth Pattern; Deputy vice Secretary General of CISA, Qi Xiangdong made special report about Operating Situation of Steel Industry in the First Half of 2007 and Analysis on its Movement in the Second Half and Development and Scientific and Technical Environmental Protection Department made special report on Suggestions about Energy Saving target in China’s Steel Industry and Improvement of Energy Saving Index System.
Working report from Luo Bingsheng
The report from Luo Bingsheng included (1) operating situation of steel industry in the first half of 2007; (2) analysis on its movement in the second of half of the year; (3) major tasks for CISA in the first half of the year and (4) four key tasks to be done well by CISA in the second half of the year.
Speech from Zhang Xiaogang
Zhang Xiaogang made speech on the following aspects: (1) to further intensify energy saving and discharge reducing works in the steel industry; (2) to actively carry out national macro regulatory policy and phase out backward capacity together with governmental departments concerned; (3) to quicken up structural adjustment and strategic consolidation in the whole industry; (4) several matters to be marked in the second half of the year and (5) seriously to implement No.36 document issued by the State Council Office and promote CISA to walk another step upwards.
Special report from Qi Xiangdong
Qi Xiangdong’s report included (1) operating situation of steel industry in the first half of 2007; (2) analysis on the movement of the industry in the second half of the year and (3) seriously implementing macro regulatory policy and boosting healthy development in the steel industry.
Special report from vice Director at Development and Scientific and Technical Environmental Protection Department, Lan Denian
The report included (1) current situation of energy save in China’s steel industry; (2) analysis on the difference of energy save between our steel industry and advancing level in overseas market; (3) suggestion on improving energy index system in our steel industry; (4) suggestion on energy saving target in our steel industry and (5) suggestions on how to realize energy saving target in our steel industry.
　

The number of new projects in Hebei Province decreased by 34.6% in the first half（2007/07/19）
According to statistics office of Hebei Province, with the tightened macro control policy, the standard for new projects are much more strict. Due to this, the number of new projects that got under construction in Hebei Province during the first half decreased by 116 (34.6%) from that of the same period in 2006.
Hebei Province is the leading province in iron and steel industry. Due to the government continuously strengthened the macro control to prevent the economy from fast to overheating, the iron and steel industry’s boosting to the economy of Hebei Province was affected. And the growth of iron and steel industry’s throughput and economy in Hebei Province has been slowed down, due to the policies to limit the export, demolishing the outdated capacities and control of new projects and so on.
　

The pollution control in Shanxi moves on smoothly（2007/07/18）
Till 30th June 2007, 135 of the 148 companies or facilities to be abandoned by the government of Shanxi Province have been shut down or closed, amounting to 91.22%. Among these, 62 to be washed out by 30th April have been all shut down, and 52 out of the 56 to be closed by 30th June have been abandoned, and 21 out of 30 to be demolished by 30th Nov have stopped operatoion.
The four companies or facilities, which are still under operation, include No 1 and No 2 sintering machines and No 1 (324 cube meters), No 2 (296 cube meters) and No 3 (1200 cube meters) iron melting blast furnaces in Taiyuan Iron and Steel (Group) Company Ltd; Hongtong County Gaoyi Coal Coking Company Ltd; Hongtong County Ti Viliage Bayi Coal Chemical Plant; Shanxi Xinlin Iron and Steel Company’s two 113-cube-meter blast furnaces.
According to the provincial environment protection office, the above four companies or facilities will be forcedly shut down. The related administrative offices should watch carefully these companies or facilities listed and secure the pollution control targets.
　

22 small smelting plants in Bayanzhuoer Inner Mongolia were shut down（2007/07/12）
According to the news from Bayanzhuoer City’s economy committee, till five o’clock in the afternoon of 6th July, 22 small iron-melting plants in Bayanzhuoer, which didn’t meet the industry standards in China, were cut off electricity and shut down. And the equipments are required to be demolished in a limited time. The total capacity of these small iron-melting plants was 1.20 million tons, with the largest 86,000 tons and the smallest 14,000 tons.
These plants are of those high energy-consuming and pollution companies, with a great lot of dusts and sulfur dioxide and other harmful materials emission, therefore they are listed in the five types of plants the government wants to wash out, which includes small oil refinery, small glasswork, small cement works, small iron steel plants, and small coal based power station.
　

The results of Construction Color Coated Sheet Development passed the attestation(2007/07/11)
The project, Construction Color Coated Sheet Development by Steel Research Institute, Chengdu Color Coated Sheet Company and cold rolling plant, passed the technical test by Sichuan Province’ Science and Technology Office. Professionals from Sichuan University, Er-chong Group Company, Southwest Jiaotong University, Xihua University and so on gave a description that the products of the project have been tested by the users like Zigong Oriental Boiler Color Steel Strucutre Company and Guanghan Window and Door Section Steel Company, the main performance all meet GB/T127454-2006 Standards and the consumers’ requirements in construction field. Now the project has an accumulative output of more than 400,000 tons, having a good profitability.
　

Growth of raw material production slow down in May(2007/07/06)
National Development and Reform Commission announced on 29th a report to show that in May, the growth of domestic major raw material production slowed down, prices of steel and cement rose slightly, that of nonferrous metal declined significantly. According to May statistics, raw steel and steel products output increased by 15.7% and 19.6% respectively from a year ago. Report still showed that output of 10 nonferrous metals increased by 22.3% compared with the same period last year, the growth rate declined by 3.3% from a month ago. Of total, the output of electrolytic aluminium increased by 28.6%, down by 9.5% from last month. Haitong Securities analyst Yang Hongjie said that the relatively faster production growth of electrolytic aluminium and zinc was mainly due to coming on stream of newly built and expansion projects, together with pressure from prices. Most of nonferrous metal prices this year saw not much increases from last year, hence profits in the sector decreased greatly.

NSC visited Wuhan steel(2007/07/06)
Wuhan steel general manager, Deng Qilin welcomed senior official, Ru of NSC at Wugang Hotel on June 29. Both sides held an informal discussion on enterprise tactic and management system. At meeting, Ru made specific elaboration around enterprise strategic aspect, as well as development process, enterprise frame and high-end product of NSC. Related departments of the two companies exchanged topics that were concerned by parties.
Ru said he appreciated that both companies established regular exchange mechanism and that Deng positively promoted exchange visits among high level management of the two companies. At the beginning of the year, general manager Dengqilin visited NSC, both sides quickened the pace of exchanges and established regular exchange mechanism in the field of energy saving and environmental protection. Through continuous exchange and understanding, both sides hope exchanges will expand to other fields. They believe both companies will boost development and build cooperation in the new field by deepening exchange visits.
At the meeting, Deng had friendly and frank discussion with Ru on the topics of technology reform, quality management, sales of silicon steel, double high products, employees and new process in steel industry, application of new technology as well as energy saving and environmental protection. He says it is very important to conduct cooperation and exchange among firms under great development situation in the world steel market. Accompanying the consistent development of Wugang, under new situation, enterprise faced with various problems in the aspect of innovation systems, NSC has rich experience in this respect, we hope to have the opportunity to study from world advanced enterprise. We hope both sides continue to expand study scope to ways and mothod to cultivate personals besides energy saving and environmental protection in the courses of regular exchange. For the aspects such as promotion, management, use and the checks of cadre management level and employee carry out learning intercourse. In the future, we expect two enterprises could deepen cooperation, make progress tegother and realize win to win when facing double win chances.
Attendees of the meeting included Jia Baojun, vice-general manager of Wugang, Fu Lianchun, vice-engineer in chief and major principals in strategic lab, management department, personals department, technology innovation department, foreign affairs department, International Trade General Corporation, production technology department and sales center.
　

Profits in major steel makers up 202.2% during January to April of 2007（2007/06/25）
According to general secretary and deputy vice chairman of China Iron and Steel Association, Luo Bingsheng, profits in 77 medium and large steel producers stood at 48.641 billion yuan during January to April of 2007, up by 202.2% from the same period of last year.
Luo said the 77 producers achieved sales income of 584.711 billion yuan, up 37.38%; revenue of 78.993 billion yuan, up by 107.49%; profit margin to sales of 8.32%, up by 4.54% from 3.78% of the previous year.
During the period, new capacity of pig iron stood at 1.63 million tons, that of steel 1.2 million tons; that of hot rolled products 2.03 million tons and that of cold rolled products 7.603 million tons. The cost to produce pig iron rose by 6.8% due to rising prices of fuel and outsourced materials. The average price of imported iron ore was $71.82 per ton on CIF basis, up by 15.62%. Given the total imports of 133.54 million tons during the first four months, production cost increased by 9.974 billion yuan resulting from the higher price of iron ore alone.
During January to May, output of four high value added steels such as cold rolled sheet/coil, galvanized sheet, coating sheet and electric sheet reached 23.7673 million tons, accounting for 10.85% of the total output, up 1.6% from the previous year.
Projects with 5 million yuan or above in the industry realized fix assets investment of 89.5 billion yuan, up by 4.6%. There were 21 makers producing crude steel over 5 million tons, accounting for 50.49% of the totals, down by 1.88%.

Regroup of Jilin Ferroalloy by Sinosteel entered essential stage（2007/06/21）
Sinosteel Group Jilin Ferroalloy Co. Ltd. inaugurated on June 18 and started construction a special ferroalloy base at the same time, marking the regroup of Jilin Ferroalloy Plant by Sinosteel entered essential stage.
Sinasteel, as a large central governmental enterprise under the control of the State Council, is a multinational enterprise group providing comprehensive supplementary and system integration service and combining resource development, trade logistics, engineering technology, facility manufacturing and professional service. The group is also a supplier and agent for the major steel producers in the country.
Sinosteel Jinlin Ferroalloy Corp. is the largest ferroalloy producer in the country with annual capacity of over 500,000 tons. Investment of the special ferroalloy project was around 500 million yuan. The company aims to realize output over 1 million tons per year by 2009 and achieve headline sales up to 10 billion yuan.

Shanghai Steel Service Institute inaugurated（2007/06/20）
Shanghai Steel Service Institute, based on Baoshan district, Shanghai and sponsored by 32 steel service enterprises led by Baosteel Enterprise Development General Corporation, inaugurated on June 16. This is the first provincial Institute of its kind in the country taking steel service as core business.
At present, Shanghai is not only an important premium steel base and steel consumption market, but also a key trade and service center. The first 160 members include state-owned, collective-funded, non-governmental and foreign-funded firms dealing with steel trade, trade market, logistics distribution, structural installation, education training, engineering and development, finance trust, information consultant and e-commerce and steel service business affairs.
By 2005, there were more than 6,000 steel service firms in Shanghai, among which nearly 600 were large-scaled. Also, there were over 200 steel processing and distribution centers and as many as 60 steel trade markets under operation, with total trading volume over 50 million tons per year, accounting for one sixth of the whole country. More than 20 e-commerce firms were registered in Shanghai.

Domestic steel prices fell for three weeks in a row（2007/06/19）
Domestic steel prices fell for three weeks in a row as the country imposed export tax on some steel products. According to National Development and Reform Commission, the average weekly prices of four major steel products in 22 key cities stood at 4142 yuan per ton last week, declined by 1.1% from a week ago and by 2% year-on-year.
The average weekly prices fell for three weeks with total drop of 3.27% since Ministry of Finance announced to impose 5-10% tax on exports of more than 80 steel products on May 21.
Last week, average weekly prices of wire rod, rebar, medium plate and cold rolled sheet were 3679 yuan, 3654 yuan, 4227 yuan and 5008 yuan per ton respectively, fell by 1.7%, 1.4%, 1% and 0.7% from a week ago and rose by 1.6% and 5.6% and fell by 4.1% and 7.6% respectively from a year ago. Steel price index in the international market stood at 175.3 points last week, rose by 1.7% from the previous week and by 10.4% from the previous year. As a result, the prices between home and international market are further widening.

Steel Exports Begin to Slow down in May（2007/06/19）
China's steel exports have started slowing down as a result of the government's control measures, according to the latest industry data.

Overseas shipment of Chinese steel products stood at 6.17 million tons last month, down from 7.16 million tons in April, show figures from China Iron & Steel Association.

This is the first month-on-month slide this year.

In the first five months, steel product exports surged 110.9 percent year-on-year to 27.44 million tons. But the pace was down from 132 percent in the first four months.

Meanwhile, growth of China's steel billet exports decelerated to 75.1 percent from 92.2 percent.

Chen Xianwen, an official from the steel association in Beijing, told China Daily: "The slowing exports indicate the government's curbing measures are beginning to show."

China, the world's top steel producer since 1996, has taken a raft of measures since last year to tame skyrocketing exports and mitigate trade conflicts with other countries.

On June 1, the nation levied 5-10 percent export tariffs on 82 categories of steel products and upped duties on overseas shipment of another 19 categories to 15 percent from 10 percent.

The move came less than two months after China cut tax rebates on overseas shipment of 76 categories of steel products to 5 percent from 8-11 percent and eliminated tax rebates on another 83 categories.

Chen said these measures are making domestic steel mills "more rational" in the foreign market. The export pace will slow down further in the second half of this year because of the government's curbs, he said.

"However, we should be vigilant as slowing exports will add to supply in the domestic market and bring down steel prices, which will possibly spur producers to raise exports again later this year."

Dumping and subsidy accusations against domestic steelmakers are growing from other countries because of swelling imports of steel products from China.

Last week, six steel pipe makers and the United Steelworkers union in the US appealed to the US Commerce Department to impose anti-dumping charges of up to 88 percent and extra countervailing duties on steel pipes from China that they claimed are being sold at unfairly low and subsidized prices. But Chinese steel pipe companies have refuted the accusation.

Crude steel production in China climbed 19.97 percent year-on-year to 195.62 million tons from January to May. The growth slackened from 21.19 percent in the first four months.

The steel association predicted earlier this year that 2007 production will reach 462-475 million tons, up from 419 million tons last year.
　

Four industrial alliances including steel inaugurated（2007/6/13）
China Recyclable Flow Technology Innovation Strategy Alliance of Steel Industry, New Generation Coal (Energy) Chemical Industry Technology Innovation Strategy Alliance, Coal Development Technology Strategy Alliance and Agricultural Equipment Industry Technology Innovation Strategy Alliance officially inaugurated on June 10 at Beijing, a move to build “aircraft carriers” in the fields of steel, coal, chemical industry and agricultural equipment that are regarded important basic industries in the national economy.
The new alliances include 26 leader enterprises, 18 first-class universities and 9 backbone institutes, creating an integrated technology innovation chain that closely combines research, design, engineering, production and market. Total sales revenue from the members of each alliance stood nearly 900 billion yuan last year and paid tax payment over 100 billion yuan.
　

Steel exports may rebound on wider price gap(2007/6/12)
China's efforts to raise the costs of steel exports will lead to lower domestic prices in the second half, but then exports may rebound as the price gap widens, a senior industry official has warned on Saturday.
Lower prices at home could again push China to export more to international markets, where prices are high, provoking more state measures to curb overseas sales and leading to "huge fluctuations" in the domestic market, said Luo Bingsheng, vice-chairman of the China Iron and Steel Association.
"That's what we don't want to see," Luo told a conference organized by Steelhome.cn. "The government should step up efforts to eliminate outdated capacity and mills should adjust output based on actual demand to reach a new supply-demand balance."
"It's quite clear now that prices in the second half will fall," Li Jianshe, marketing manager of Maanshan Iron & Steel Co. "I don't think domestic supply can stop the growing pace."
The government has announced a range of measures, including reducing and removing export tax rebates, imposing and increasing export taxes on some steel products and billets, and requiring export licenses for certain products, to rein in China's swelling steel exports which had more than doubled in 2006.
Exports of China's steel products soared 132 percent to 21.3 million tons between January and April from a year earlier, as steel makers and traders raced to beat the export policy changes, which became effective recently.
"Exports in 2007 may be a bit lower, or around the same level, as last year, because exports in the second half will fall from that of the first four months," Luo said.
Domestic steel prices had been recovering this year until May, which saw a modest correction. Luo said mills' profitability in the second half will be lower than in the first four months, but should still be at least on a par with last year's.
China's May steel product exports hit 6.17 million tons, falling from April's record monthly high of 7.16 million tons, according to a Ministry of Commerce official, citing customs data that have yet to be released.
But the official said the May data was still not small, considering the weeklong Labor Day holiday. (Source: Shanghai Daily)
　

Changzhi city to close 25 blast furnaces by the end of June(2007/06/11)
Changzhi government decided to close and eliminate backward capacity of 25 blast furnaces by the end of June, in a bid to boost update of traditional industry and enhance steel industry level.
The first batch of capacity to be eliminated included 700,000 tons or 1,155m3 in 6 cities and counties, among which 4 furnaces were listed as national crackdown with total capacity of 110,000 tons or 177m3.
　

Export of iron and steel products from Guangxi sharply increased during Jan to April(2007/06/05)
From Jan to April of 2007, Guangxi Zhuang Autonomous Region, in middle South of China, had an export value of steel products of 88.58 million US dollars, increasing 4.4 times; that of slabs and crude forged products reached 14.38 million US dollars, up 51.7 times; that of aluminum products increased by 70.7%, to 33.31 million US dollars; that of zinc ingot increased to 26.13 million US dollars, up 4.9 times; that of tin ingot increased to 16.65 million US dollars, up 4.2 times; that of manganese ingot increased to 27.69 million US dollars, up 1.8 times; that of silver ingot increased to 30.83 million US dollars, up 1.6 times.
　

Investment in China's steel sector picks up in Q1(2007/06/04)
Investment in China's steel sector rose 13.5 percent in the first quarter of 2007 over the same period last year, the highest growth rate in the past year, according to the nation's economic planning agency.
The investment totaled 36.9 billion yuan (4.8 billion U.S. dollars) between January and March, said a report from the National Development and Reform Commission (NDRC).
The authorities should pay more attention to preventing further investment hikes in the high energy-consuming industry, said the report.
China's net exports of crude steel equivalent reached 12.19 million tons, 340 percent higher than the previous year's first quarter.
"Exporting low-end steel products that devour a lot of energy and contaminate the environment is by no means acceptable," the report stated. It added the steel industry accounts for 15 percent of the country's total energy consumption and discharges 14 percent of the total pollutants.
The status of net steel exporter contradicted China's industrial policies and hindered the attempt to meet energy efficiency and pollution reduction targets and the steel industry restructuring, the NDRC said.
The Chinese government has set a goal of reducing energy consumption per unit of gross domestic product by 20 percent between 2006 and 2010, while pollutant discharges should drop by 10 percent.
Energy consumption, however, fell only 1.23 percent last year, less than one third of the annual goal of four percent.
As the world's biggest producer and consumer of steel, China has introduced a series of measures to curb the growth in steel exports this year.
China will impose five to 10 percent export tariff on more than 80 steel products mainly including common carbon steel wire, sheets and plate as of Friday, said the Ministry of Finance.
The country has removed exports tax rebates on 83 steel products while lowering the rate on 76 others to five percent as of April 15 and applied export license management to 83 steel products as of May 20.
"It may take a while before the measures take effect and current demand for steel remains high in the global market," said the report, indicating fast growth of steel export would continue.
The reports added China will strictly levy higher water and electricity bills and waste treatment fees on the steel plants to ensure further progress being made in energy saving and pollution reduction.
　

Profit of steel export in Anhui Province trend to shrink（2007/05/30）
Ministry of Finance began to impose or raise export tax on 142 products on May 21 in order to control exports of high-energy consumption and high degree of pollution, to promote trade balance and to ease money policy. Market observes pointed out steel makers in Anhui Province led by Magang Co. will face challenges, whose export activities could lead to nonprofit.
In 2006, Magang exported products of 920,000 tons with export valve up to $400 million. Official from Hefei Customs said the exports to be imposed 5-10% tax include ordinary wire, sheet, sections and other materials. Take hot rolled coil/sheet for example, its household list price is 4100 yuan per ton and has little profit compared to current export price of $560 per ton given freight rate and taxes of 5-10%.

Shandong Province to eliminate backward steel capacity of 6.19 million ton in 2007（2007/05/30）
Shandong Province will eliminate backward steel capacity of 6.19 million ton in 2007. In 2006, the province produced pig iron of 43.28 million tons, steel of 37.14 million tons, ranked No.2 and No.4 in the country respectively. At the moment, the province has formed pig iron capacity of 48 million tons and steel capacity of 43 million tons. However, two third of the capacity are not in line with the national entry permission that requires effective volume of blast furnace above 1000 m3 and converter volume above 120t.
According to Environmental Protection Bureau of Shandong Province, discharges of wastewater, industry dust and SO2 were 2,490 tons, 38,700 tons and 129,000 tons in 2006 respectively, accounting for 1.87%, 11.9% and 6.58% of the totals emission in the province. 17 companies in the region will be cracked down as the first covering pig iron capacity of 4.9 million tons and steel capacity of 7.91 million, with 2.48 million tons and 3.71 million tons to be eliminated respectively this year.
　

Shanghai launches daily nonferrous metals price index(2007/05/29)
SHANGHAI: The Shanghai Nonferrous Metals Trade Association (SNTA) yesterday said it would issue its first daily price index for nonferrous metals today to provide a reliable indicator to users and investors.
The Shanghai Nonferrous Metals Index (SMMI) is to be based on the spot prices of the six nonferrous metals - copper, aluminum, nickel, lead, zinc and tin - published on the Shanghai Nonferrous Metals Website. The combined output of these six metals accounts for 90 percent of the country's entire non-ferrous metal output.
"It is high time to establish a nonferrous metals index in China. As a big nonferrous metals producer and consumer, we are in urgent need of a price index to produce our own voice in the international market and better serve China's enterprises," said Zhang Minxiang, chairman of Shanghai Nonferrous Metals Trade Association.
The reference level of 1,000 was based on the spot prices of the six metals quoted on April 1, 2003. At current prices, the index is estimated to have risen beyond 3,000, a reflection of the magnitude of the jump in commodity prices in the past several years.
This first composite spot price index for nonferrous metals, to be published at noon every weekday, is expected to be closely watched by metals buyers, particularly makers of electronics, electrical appliances and cars. In addition, the index should serve as an important barometer of manufacturing prices that are crucial to economic planning.
"The SMMI is a composite index that reveals not only the price trend of one metal, but incorporates major nonferrous metals and considers the interactions among different markets. The index should accurately reflect the situation of the whole industry," said Tong Leshen, general manager of Shanghai Nonferrous Metals Trade Association Information Service Center.
The weighting of each nonferrous metal in the SMMI has been set in accordance with its market share according to figures provided by the State Statistics Bureau and China Customs. According to the SNTA, the weighting of the SMMI is going to be adjusted every two years to keep pace with new developments in the industry.
A total of 105 enterprises ranging from producers of nonferrous metals to the companies trading in them have been selected to provide the pricing reference. These companies include 12 listed companies in the nonferrous metals industry.
The establishment of the composite index should provide the government with a simplified approach to watching the industry and enable it to draft appropriate regulatory policies, said Cheng Daxuan, secretary-general of Shanghai Price Association.
The index is expected to reflect the fundamentals of the domestic nonferrous metals market, he said. Source: China Daily
　

The investment in iron and steel industry increased on a higher speed during the first four months（2007/05/25）
In later half of 2003, China strengthened the control on investments in iron and steel industry and so on, and as a result, the increasing speed of investments declined sharply in 2004. From 2005 to 2006, due to the control on overcapacity industries, the investments in iron and steel industry increased at a low speed. But the investments in iron and steel industry increased at a higher speed of 6.2% during the first four months of 2007.
The reasons for this speeding up include; first, the economy grows steadily at a high speed, and the capital investment and real estate development projects keep increasing at high level; second, the prices for iron and steel products have increased since the later half of 2006, and the profits of the companies been improved, therefore companies have more motivation on new capacity construction or expansion; third, the export volume of iron and steel products increased quickly in recent years, and the overcapacity became absorbed by the outer market; forth, with the logistics of coal, electricity and oil and so on being improved, companies have a better operation environment, so that the existing and new capacity are released.
　

Government controls may curb China's steel exports in second half（2007/05/24）
(Xinhua) -- Steel industry analysts are predicting China's steel exports will continue to rise this month despite government measures to dampen sales overseas.
The government on Monday imposed export tariffs of five to 10 percent on more than 80 steel products, including steel wire, sheet and plate, and raised export tariffs from 10 to 15 percent on primary commodities such as steel billets, ingots and pig iron from June 1.
However, the rise in the cost of exports combined with the seasonal low demand in the global market in summer would probably lead to falling exports later in the year, said a senior analyst Jia Liangqun.
Yet, Zhou Xizeng and Li Hongliang, of CITIC Securities, agreed the steady increase in exports would continue, and the higher export tariffs would lead to rises in international prices and China's export prices.
Three cuts in China's steel export rebates since 2004 had resulted in increases in both prices.
The increases tariffs were the government's response to the April figures showing a record export of 7.16 million tons, much higher than the forecast maximum of 6.5 million tons.
"The market is about to react this time," said Jia.
Analysts agreed, however, the policies would fail to reduce exports in the short run, and would probably start to take effect from July.
Export figures for May would still be "striking", possibly even higher than April's, said Zhou Xizeng and Li Hongliang, of CITIC Securities, as steel firms aimed to boost exports in anticipation of stricter controls.
Some analysts echoed their view, saying companies could increase export in the near future to offset the effect of government policies.
The government scrapped or lowered a range of export rebates in April to curtail mounting exports and curb excessive production.
The world's largest exporter of steel products, China exported more 20 million tons in the first four months, and some consulting firms estimate this year's exports at around 30 million tons.
　

China’s steel industry lags behind the leading countries in four aspects(2007/05/23)
Executive vice chairman of the Chinese Society for Metals, Hong Jibi said at Metallurgical Technology Weekly in 2007 jointly hosted by the Chinese Society for Metals and Wuhan Iron and Steel Company on May 18 that our steel industry still lags far behind the leading countries although the Chinese industry experienced rapid development in recent years with annual output exceeding 400 million tons.
The disadvantages lie in four aspects:
1. Lack of centralization in the industry;
2. Shortcomings in production, quality, variety and specification of high value added materials;
3. Shortcomings in new industry, new facility and development of new technology;
4. Our mills consume more energy from a sustainable view of point.

According to China Iron and Steel Association, China produced over 400 million tons of raw steel in 2006, accounting for one third of the totals in the world. During the first quarter of 2007, the production situation maintained a high-speed growth and overall energy consumption trended upward although the unit consumption lowered. The industry faced tough works in dealing with energy saving and discharge reducing.
　

Shanxi Province makes plans for abandoning obsolete capacities in various industries(2007/05/22)
According to the “11th Five-Year” plan, Shanxi Province’s integrated energy consumed per 10 thousand GDP will be decreased by 25% in 5 years. In 2006, the targets were unable to realized. Therefore, 2007 becomes a key for the targets. And the provincial government has made plans for abandoning these obsolete, outdated or unadvanced processes, technologies, facilities and products in various industries, which are not in accord with the industry polices.
And the targets for various industries includes;
Iron and Steel industry: abandon iron melting capacity more than 10 million tons in 2007, and 37 million tons of iron melting capacity and 5.60 million tons of steel melting till 2010;
Calcium Carbide and iron alloy industry: to eliminate 350,000 tons of Calcium Carbide, and 160,000 tons of iron alloy;
Coke industry: to eliminate 8.59 million tons in 2007, and 24.07 million tons till 2008.
One month after the list of companies and facilities to be closed or abandoned released by the government, the water, electricity supply and logistics services for the companies included will be cut; and three months later, the Industrial and Commercial Business Licenses and the permit for iron and steel production will be taken back. The government plans to realize the targets by 30th Oct, and demolish the abandoned blast furnaces, converters and the facilities like fans, sintering machines, chimneys and so on, and level off the sites.
　

Iron Ore Imports Rise 23% in First 4 Months（2007/05/18）
Propelled by rapid economic growth, China's imports of iron ore surged 23.3 percent in the first four months of 2007 from a year earlier, according to the General Administration of Customs (GAC).
Iron ore imports rose to 133.6 million tons from 108.3 million tons in the same period last year, the GAC said. It added that April imports hit 33.4 million tons.
China's double-digit economic growth has boosted the growth in iron ore imports as well as steel consumption. China's economy expanded 11.1 percent in the first three months after rising 10.7 percent in 2006.
Analysts said the iron ore imports for the whole year of 2007 were set to beat the earlier forecast of 355 million tons by the China Iron and Steel Association.
As the world's biggest producer and consumer of steel, China imported a record 325 million tons of iron ore and produced 419 million tons of crude steel last year.
Luo Bingsheng, deputy chief of the China Iron and Steel Association, said on Tuesday that domestic steel firms should buy or jointly develop more overseas iron mines.
Luo said that in order to guarantee stable supply in the medium and long term China needed to control at least a third of world iron ore resources.
China imported 5.9 million tons of steel products, but exported 21.3 million tons between January and April, according to the General Administration of Customs. Exports soared 132 percent from the 9.2 million tons in the same period last year.
In April exports rocketed to a monthly record of 7.16 million tons.
Analysts said steel producers were rushing exports out the door as the country removed tax rebates on 83 steel product exports and lowered the rate on 76 others to five percent as of April 15.
Steel firms also knew that 83 steel products will come under an export license management regime from May 20 and were reacting to speculation that, in a move to counter the widening trade surplus, the nation will introduce export tariffs on low-end steel products to rein in steel exports.
　

Outmoded Steel Production Capacity to Be Eliminated（2007/05/16）

China will eliminate 22 million tons of out-of-date iron production capacity and 24 million tons of outmoded steel production capacity in 2007, the National Development and Reform Commission (NDRC) announced on Monday.

The shutdowns will affect ten provinces, municipalities and autonomous regions.

This is just the first stage in efforts to modernize these industries and reduce pollution, said NDRC head Ma Kai, adding "We are looking for ways to eliminate more."

By 2010, the country plans to have eliminated 55 million tons of out-of-date steel production capacity and 100 million tons iron production capacity.

Jinan scraped $800 million steel project（2007/05/14）
On May 4, Pingyin Xinyuan Iron and Steel, a non-governmental steel company with production value of $800 million in Jinan ceased overall production and will eliminate eight electric furnaces, marking the biggest move in such activity in Jinan.
Founded in December 2002, the company operating eight 20t electric furnaces and one high-speed wire line mainly produced hot rolled wire rod and achieved sales revenue of 800 million yuan in 2006, paid tax payment of 7 million yuan, consumed raw coal of 9,000 tons plus.
According to the schedule, the company will wash out all the electric furnaces in October this year and already booked six 50t fine electric furnaces and two 60t fine electric furnaces for amount of 180 million yuan. The project is scheduled to complete in December 2007.
Jinan city has so far cracked down 54 small steel makers not in line with the national industry policy, over 50 small coal miners, more than 230 small refineries, 18 backward lines for cement and 2 small coal based power stations.

Export Licenses Introduced for 83 Steel Products（2007/05/09）
China will apply export license management to 83 steel products as of May 20 amid efforts to rein in the expanding steel exports and trade surplus, according to the Ministry of Commerce.
The ministry said it has issued a joint notice with the General Administration of Customs saying 83 steel products including cold-rolled sheets, hot-rolled steel rolls and plates are subject to export licenses.
The license system only applies in general trade, according to the notice.
China exported 14.13 million tons of steel products in the first quarter, up 118.4 percent from the same period a year earlier, according to the General Administration of Customs.
The administration said the nation exported 5.38 million tons of steel in March, slightly lower than the record high of 5.55 million tons set last December.
China removed as of April 15 exports tax rebates on 83 steel products and lowered the rate on 76 others to five percent as it strives to cut its trade surplus.
The surplus soared to 46.44 billion U.S. dollars in the first quarter of this year, nearly double the 23.3 billion U.S. dollars surplus in the same period last year.
Curbing exports by the energy and pollution-intensive steel industry will also help the government attain its goal in energy saving and pollution control, a new policy priority for the government, observers here said.

China's steel export to slow down in second half(2007/05/08)
China's export of steel would not maintain the high growth rate recorded in the first quarter, and would slow down in the second half of the year, owing to the shrinking demand internationally and reduced export rebates, according to a business insider.
Statistics with the China Iron and Steel Association show the country exported 14.13 million tons of steel in the first quarter, an increase of 33.26 percent from the same period last year. The export throughout the year would reach 57.3 million tons if estimated on the average daily export reported in the first quarter.
However, Luo Bingsheng, vice chairman of the association, said the estimation for the whole year was not well grounded, predicting that the high growth rate was unlikely to continue into the second half.
The market for export would be narrowed in the second half against a smaller demand for steel globally throughout the year, although the demand was robust in the first quarter, according to Luo.
The International Iron and Steel Institute said the demand for steel in 2007 was 2.6 percent lower than last year.
The export rebate cut for steel products, which came into effect on April 15, may dampen the enthusiasm of steel exporters, Luo said.
He predicted that China's export of steel products may level with that in 2006 or even drop slightly in 2007.

Tentative tax on export of primary steel to rise（2007/04/30）
Vice premier, Zeng Peiyan said yesterday the government should control the steel industry by means of tax and price leverage. The country is considering to impose tentative tax on export of primary products like billet and coke as well as some low value added steels, to further cut capacity with high energy consumption and high degree pollution and to encourage structural adjustment by properly retaining tax rebate on high grade steel and special steel.
Following withdrawal of export rebate on general and low grade steel, the country issued policy to further cut rebate on April 15 2007, with most cases in which the rebates have been cut to nil. He also suggested to strengthen management on market entry, give priority to eliminate lagging capacity, offer proper financial support to certain local governments and launch community supervision over process of ceasing and eliminating lagging capacity.

Baosteel sets up subsidiary in NW China（2007/04/30）
Baosteel Group Xinjiang Bayi Iron and Steel Co. Ltd. was founded in Urumqi, capital city of northwest China's Xinjiang Uygur Autonomous Region, on Saturday.
Baosteel Group, China's largest steel maker, acquired Bayi Ironand Steel Co. Ltd. in January by investing 300,000 yuan in the corporation and becoming its controlling share holder.
"The restructuring is in line with the country's policy of encouraging consolidation in the steel sector. It is of great significance not just for China's iron and steel industry but also for central and eastern Asia," said Li Rongrong, director of the State-owned Assets Supervision and Administration Commission of the State Council.
Baosteel said it would inject technology and management expertise into Bayi Steel to accelerate its development.
Bayi Steel is now the largest steel maker in Xinjiang. It is expected to increase its production capacity to 6 million tons by 2010.

Working conference on crack-down of steel capacity held on April 27(2007/04/28)
At 4 pm on April 27 2007, a working conference on ceasing and eliminating backward steel capacity was held at the State Council’s No.1 meeting room. Zeng Peiyan, vice premier of the State Council delivered speech at the meeting.
The attendees included principals concerned in the State Council, 10 provincial, autonomous regional and municipal governments and Institutes as well as officials at steel producers in Beijing.
There were three agendas in the meeting: 1. National Development and Reform Commission (NDRC) was required to sign liability letter on ceasing and washing out backward steel capacity with 10 provincial, autonomous regional and municipal governments of leading steel producers including Beijing; 2. Principals concerned in NDRC, State Environmental Protection Administration, China Iron and Steel Institute and People’s Government in Hebei Province delivered speeches; 3. Vice premier, Zeng Peiyan made an important address.

Shanghai Steel Service Institute to debut next month（2007/04/27）
Xiayu, vice warden of Baoshan district, Shanghai city said recently we are pushing ahead to establish Shanghai Steel Service Institute in a bid to build a platform between government and enterprises to advance the development of steel service in Shanghai.
He said the Institute is scheduled to launch this May and will offer enterprises concerned with cervices such as steel trade, raw materials supply, logistics and distribution, engineering, structure installation, scientific research and education, exhibition and tourism, futures trade as well as energy saving and environmental protection.
Out of over 6,000 steel service enterprises, more than 2,600 were registered in Baoshan district, including 45 large warehouses for steel (accounted for 70-80% of the total storage), 12 steel trading fairs and 10 e-commercial companies. About 30 million tons deals were realized in Baoshan district each year out of 50 million tons as a whole in Shanghai. Therefore, the next step is to speed up the process of centralization in the industry, he added.
The industrial department in charge, district government and the steel service institute should vigorously provide assistant for the steel companies nationwide that developed in Shanghai, especially for non-governmental steel producers.

Hebei Province recorded on iron and steel export（2007/04/26）
Due to the continuously strong demand and the rising prospect from market for the new policy on iron and steel industry, Hebei Province, about 280 km south from Beijing, made a new record on iron and steel products export in March. In March, the province exported 520,000 tons of steel products, toping 500,000 tons, with a value totaled 270 million US dollars. The export volume had maintained at more than 400,000 tons per month for three months, and the export value exceeds 200 million US dollars for 4 months in line. Besides, the province realized an export value of 50.94 million US dollars on slabs and forged materials in March, increasing by 1.3 times.
According to the statistics from Shijiazhuang (Capital City of Hebei Province) Custom, the value of the exported iron and steel and iron and steel related manufactures totaled 1.13 billion US dollars during the first quarter, increasing 1.7 times from that of the same period in 2006; steel products accounted 2/3, with a value of 750 million US dollars, up 3.2 times; and the export value for slab and forged materials reached 110 million US dollars, up 1.2 times; the value for wire cloth net to 69.60 million US dollars, up 24.2%. The iron and steel products contributed 81.1% to the export value increase in Hebei Province.

NDRC strengthens inspection over steel projects(2007/04/19)
National Development and Reform Commission (NDRC) recently announced to strengthen inspection over steel engineering enterprises and engineering management. The announcement allows nobody to undertake illegal steel projects that were not approved by the central government and to receive engineering orders of backward facilities that not in line with industry policy.
Since last September when self-inspected stage started in the steel engineering firms, NDRC has found a considerable part of them unaware of overall situation and negligent of carrying out industry policy and macro regulation during the period from 2004. An official at NDRC said these firms self-designed and undertook new capacity projects of iron-making, steel-making and rolling that were not approved by the government. Some companies even participated in a batch of illegal steel projects concerning small blasts and small converters.

Tax Rebate Cut to Slow Steel Sector(2007/04/19)
China's iron and steel industry is expected to grow at a relatively slower pace this year as it will take some time for it to absorb the pressure of the price rise caused by the government's latest move to cut tax rebates on exports of some steel products.
The government will reduce tax rebates on exports of select high-end steel products such as stainless plate and cold-rolled steel sheet and completely remove the tax rebate on hot-rolled steel sheet and section steel from April 15, announced the Ministry of Finance on Tuesday.
"The tax rebate cut, which has been debated for a long time, won't have a substantial impact on the market. Many steel producers increased their exports substantially even before the tax rebate policy was introduced," said Qi Xiangdong, deputy secretary-general of the China Iron and Steel Association at the 2007 China Steel Import and Export Seminar yesterday.
"Besides, the international demand for steel is increasing rapidly," he said.
According to statistics of the General Administration of Customs, China's steel exports stood at 5.38 million tons in March, up 22.8 percent from last year. Exports in January and February amounted to 8.75 million tons, up 40 percent year-on-year.
But Qi said the development of China's iron and steel industry will be slower this year mainly because of the stricter macro control leading to a shrinkage in fixed-assets investment in the industry.
By the end of 2007, blast furnaces below 200 cubic meters and converters and electric furnaces below 20 tons will not be allowed, according to a National Development and Reform Commission policy.
"It's impossible to maintain the usual 20-percent growth rate as steel companies' production capacity will be weakened."
Qi and other steel experts said Chinese steel prices will remain steady and lower than the price in the international market this year. But steel companies' profits are expected to rise because of the improvement in product structure and reduction of operation costs.
Analysts said the rebate cut won't affect prices of steel stocks as the move was widely expected.

China Has 59 Bln Tons of Proven Iron Ore Reserves（2007/04/18）
The proven iron ore reserves in China are 59.39 billion tons, according to the Ministry of Land and Resources.
The iron content of the reserves is 30 to 35 percent on average and 41.5 billion tons among the total reserves is magnetite, the ministry said in a statement posted on its Website.
It noted that China has proven copper reserves of 85.31 million tons, located mainly in Tibet, the middle and lower reaches of Yangtze River, the southeast coastal areas and the eastern part of China's Northeast.
The proven reserves of bauxite, the raw material to make aluminum, stand at 2.66 billion tons, according to the statement. It added that more than 90 percent of the reserves are located in Shanxi, Guangxi, Henan and Guizhou.

China has 59 bln tons of proven iron ore reserves(2007/04/16)
The proven iron ore reserves in China are59.39 billion tons, according to the Ministry of Land and Resources.
The iron content of the reserves is 30 to 35 percent on average and 41.5 billion tons among the total reserves is magnetite, the ministry said in a statement posted on its Web site.
It noted that China has proven copper reserves of 85.31 million tons, located mainly in Tibet, the middle and lower reaches of Yangtze River, the southeast coastal areas and the eastern part of China's Northeast.
The proven reserves of bauxite, the raw material to make aluminum, stand at 2.66 billion tons, according to the statement. It added that more than 90 percent of the reserves are located in Shanxi, Guangxi, Henan and Guizhou.

Structural adjustment looming before tax rebate to be reduced(2007/04/11)
Jiangsu Province’s steel industry is mulling how to conduct structural adjustment in front of the change of national tax rebate policy for steel.
The steel industry still plays a prominent role in boosting the local economic growth although its ratio to the national economy is not outstanding. The backbone steel makers in the Province such as Shagang, Nangang and Jiangyin Xingcheng Special Steel have advanced their export volumes and profits in recent years. In 2006, for example, the leader Shagang exported 1.7 million tons of steel, ranking No.3 in the country and Nangang exported 600,000 tons, earning over $300 million through hot rolled medium steel alone. Export of the listed Jiangyin Fasten Group accounted for 26.87% of its total sales in 2006.
Experts pointed out that the local steel industry leaves no time to delay in conducting two structural adjustments in front of the change of tax rebate policy. One is the adjustment for product structure, which requires to speed up eliminating products of high energy consumption, high degree pollution and lower value while develop new products of low energy consumption, low degree pollution and higher value. The other is the adjustment for assets structure.


Li Shijun: the steel demand in China is estimated to reach 470 million tons in 2010(2007/04/10)
The steel demand is estimated to reach 470 million tons in 2010, and the consumed steel is to reach 490 million tons, according to a speech made by Li Shijun, vice secretary-general of China Iron and Steel Association, on “2007 (the second) China Iron and Steel-Iron Alloy Industry Chain Development Summit”.
Iron and steel industry is a vital basic industry for Chinese economy, and also an important mark for a country’s national economy and society level and synthesis strength. “In recent years, the iron and steel industry in China has had a great progress, and boosted the development of China’s economy. With the continuous growth of the economies in China and in the world, the iron and steel demand is to expand further.” He said in the speech.
“The “11th Five-year Plan” for economy development made by Chinese Government is targeting at constructing a low input and high output, low energy consuming and waste emitted, recyclable and sustainable developing economy and energy saving and environment friendly society. In the last two year of the 11th Five-year (2009 to 2010), the motivation for economy growth will be transferred from investment and export to consummation and investment together with demand from domestic and abroad. Therefore, at an estimated GDP growth of 9% in the first three years and 7.5% in the last two years, the steel demand in China is to reach 470 million tons in 2010.” Said Li Shijun, when he was having an interview.

Expert came with several suggestions on the development of steel industry in Hebei Province（2007/04/03）
Shan Shanghua, director of Metallurgical Planning Institute, chief analyst and Deputy Secretary-General at CISA brought forwards several suggestions on the development of steel industry in Hebei Province at a forum as follows:
1. Local steel products earmarked low-end and low value-added features as a whole. He said local steel industry has improved in the structure to a greater extent during the past ten years, covering all kind of materials except seamless pipe and stainless steel, with sheet/strip ratio up to some 50%. In comparison with the whole country, however, its shortcomings manifested three aspects as follows: (1) lack of featuring products that can dominate the domestic market; (2) ratios of medium wide strip and narrow strip were excessively bigger although sheet/strip ratio was not low; (3) lack of secondary and thrice-processed products and lower value added.
2. Although the general level of steel industry in Hebei improved to a greater extent in comparison with its own historic development, it is still in a low level compared to the whole country and facilities to be eliminated in accordance with the state policy are comparatively focused there.
3. Employee’s salary is comparatively lower and there are more risks in the cost.

Dazhong city of Sichuan bans construction of new steel works(2007/03/21)
The government of Sichuan Province released issues in compliance with Decision on Carrying out Scientific Development View and Strengthening Environmental Protection by State Council on March 19, which pointed out that serious effort should be made to address pollution sources, to continue to renovate pollutions from industry source; more efforts be given to strengthen prevention of pollution, reduce pollution loading, set aside environment capacity and prolong the stamina of industry development; great effort be given to develop recycling economy, actively push to clean production; expansion and new projects of high energy consumption such as steel and melting units will be banned in large and medium cities as well as their outskirts; water energy should be developed in order and new type energy like solar and biology be developed vigorously.
The issue called for persistence in pursuit of addressing pollution sources in the cities, of protecting sources of drinking water as well as preventing air pollution.

Guizhou Province to wash out backward capacity in 121 producers（2007/03/19）
According to local government of Guizhou Province, the energy consumption of the whole industry across the province lowered by 2% in 2006, failing to meet the planned target of 4.04%. Therefore, the government will take tough measures to eliminate backward capacity this year.
According to a report from the State Statistics Bureau, the energy consumption of GDP per 10 thousand yuan in Guizhou reached 3.25 tons of standard coal per 10 thousand yuan, ranked No.2 in the country.
In 2007, the local government will eliminate backward capacity in 121 firms of high energy consumption sectors such as steel, coking, ferroalloy, cement and calcium carbide, and try to reduce energy consumption per GDP in the region by 4.95% in 2007.

Steel Products Export Soars in First 2 Months(2007/03/15)
China exported 8.75 million tons of steel products in the first two months this year, up 139.3 percent year-on-year, according to the General Administration of Customs.
The country's steel billet export soared 87.9 percent year-on-year to hit 1.12 million tons in the January-February period, according to customs figures.
China imported 2.7 million tons of steel products in the first two months, down 4.6 percent, and imported 50,000 tons of steel billet, roughly same as the amount of last year's same period.
China's steel products export totaled 4.38 million tons in February alone, with a daily export of 156,400 tons, a year-on-year rise of 10.69 percent, customs statistics showed. The daily import in February stood at 43,600 tons, down 8.6 percent from last year's same month.
Analysts said that rising exports indicated that some steel producers have stepped up their exports against the expected cut in the export tax rebate.
The soaring steel exports might prompt the birth of new policies to adjust the export tax at an earlier date, said analysts.
China's steel exports soared drastically from a very low basis at the beginning of 2006, so the statistics indicated irrational changes, said Mao Zuhong, a research fellow with the United Securities.
Mao said attention should be focused on month-on-month figures.
Customs figures show that China exported 4.92 million tons of steel products and billet in February, down 0.61 percent from the previous month.
However, analysts said that expected export tax cut would only slow down growth rate in total steel products export, it would not change the growing trend in export.
China expects to produce approximately 460 million tons of crude steel this year, a steady growth of 10 percent over last year, according to the State Development and Reform Commission.
In 2006 the nation's crude steel output amounted to 418.78 million tons, up 18.48 percent year-on-year. (Xinhua News Agency March 14, 2007)

Shougang Jingtang steel project got go-ahead from the State Council(2007/03/14)
According to National Development and Reform Commission, Shougang Jingtang steel project has already got approval from the State Council, according to which 8 million tons of steel capacity in Beijing area will be suspended, 7.3 million tons of backward capacity in Hebei Province will be eliminated and, in the meanwhile Tangshan Caofeidian steel works has already been confirmed by the State. Zhu Jimin, Chairman of the Shougang said a construction ceremony will be held next Monday in Cao Feidian and the project will put on stream by 2010.
The total investment is 67.731 billion yuan, Shougang will own 51% shares of the project and Tanggang holds remaining 49%. The project has design pig iron capacity of 8.98 million tons per year, crude steel of 9.7 million tons, finished steel of 9.13 million tons, operates two blast furnaces with 5500 cubic meters, two 300t converters, 2250mm and 1580mm hot continuous rolling mills as well as 1700mm and 1550mm pickling cold rolled mills.

Jiangsu Province to eliminate backward steel capacity over 10 million tons(2007/03/13)
Jiangsu Province was one of the key areas listed by National Development and Reform Commission to wash out backward steel capacity in 2007. It is understood the province will eliminate outdated pig iron capacity of 5.92 million tons and steel capacity of 4.62 million tons during the 11th Five-Year Plan period.
In order to further crack down inefficient capacity, the local government will conduct investigation over steel producers, boost process of merge and consolidation as well as force to ceases mills. The authority will announce the name of firms with blast furnaces of 200 cubic meters or below, converters of 20t or below and electric furnaces of 20t or below to be eliminated by the end of 2007, backward capacity as well as facilities.

NBS made correction of steel output for 2006(2007/03/06)
In a notice about national economy and social development, National Bureau of Statistics revised China’s crude steel output for 2006 at 422.66 million tons, up by 19.7% from the previous year from the January report of 418.78 million tons, up 18.48% and finished steel production at 473.4 million tons, up 25.3% from the original report of 466.85 million tons, up 24.45%. The latest results suggested a rapid and sustained growth in Chinese steel production.
It is certain that China’s crude steel production will surpass 470 million tons and perhaps approach 480 million tons in 2007, with growth rate of 14%, slightly lower than 2006 due to a slowdown of the rise in fixed assets investment in the steel industry during 2006.

Shandong and Jiangsu set targets to eliminate backward steel capacity（2007/03/02）
Shandong and Jiangsu Provinces set targets to eliminate backward steel capacity yesterday.
Shandong planed to crack down backward iron capacity of 4.06 million tons, steel capacity of 1.35 million tons in 2007 and eliminate 3.68 million tons of iron capacity during 2008 to 2010. In the meanwhile, Jiangsu put forward to wash out backward iron capacity of 5.92 million tons and steel capacity of 4.62 million tons during the 11th Five-Year Plan period.

NDRC: China’s crude steel production is expected to reach 460 million tons in 2007（2007/03/01）
The National Development and Reform Commission pointed out in an industry notice that domestic steel industry took advantage of favorable overall business trend home and abroad and the industry in 2007 will keep a steady growth in spite of difficulties in tightened rail transportation, increased trade frictions and soared prices in raw materials.
Steel consumption rose by 10%
In 2007, the development of world economy and China’s macro business will remain stable although the growth tends to slow down. A survey from China Iron and Steel Association indicated that steel consumptions will continue to rise to a certain degree from sectors such as construction, machinery, auto, shipbuilding, petrol chemical, power, coal, transportation, rail, environmental protection, light industry, home appliance and hardware during the next few years, which will offer an effective room for our steel industry to develop.
The notice said it is entirely possible to realize a growth of 10% for GDP in 2007, 20% or more for fixed assets investment, some 20% for trade value of import and export as well as 10% or so for steel consumption. As a result, China is expected to produce crude steel of about 460 million tons and maintain a stable and growing trend in 2007.
Four reasons to constrain the development of the industry:
1. Restrict from rail transportation still exists in certain regions and times.
2. There were 11 countries adopting 27 anti-dumping and counter-subsidy cases against our steel producers in 2006, led to increased trade frictions.
3. Sales policy and pricing system yet to be established, excessive growth in both new and existing capacity exerts certain influence to the operation of the industry.
4. Prices of raw materials such as iron ore, ferroalloy, imported scrap, coal, electricity, oil and freight rate will continue to rise, and increased cost pressure see no let-out.

Liaoning supports near harbor infrastructure construction（2007/02/17）
According to Traffic Bureau of Liaoning Province, the province will make sure to complete an investment of 22.1 billion yuan on infrastructure construction in 2007 and achieve 26.1 billion yuan for the best. Of the total, harbor construction in costal areas will accounts for 8.5 billion yuan, including 62 projects such as Dalian Bay sea-route and seawall as well as a new berth for 300,000 dwt vessel loading imported crude oil in Dalian Bay. The province will positively support near harbor infrastructure construction by a number of industrial enterprises like Angang.
Coastal harbor construction plans aim to realize loading and unloading cargos of 380 million tons and loading and unloading containers of 5.5 million standard pieces. Yingkou port will exceed 100 million tons for loading and unloading cargos and become the second port whose shipment toping 100 million tons in Liaoning province.

Talk of Tax Rebate Cuts Influences Steel Stocks（2007/02/17）
Government proposals to cut tax rebates on exports for some steel products have created further doubt in the stock market at a time when share prices for most Chinese steel companies have been falling.
A possible cut in tax rebates is widely seen as an indication that the government wants to reduce China's trade surplus and alleviate trade conflicts.
Shares in Baosteel, China's largest steelmaker, fell 23 percent in two weeks on the Shanghai Stock Exchange before recovering on Monday to close at 8.7 yuan apiece. Handan Iron & Steel in Hebei Province also fell 11 percent in two weeks to close at 5.6 yuan on Monday. Meanwhile, the benchmark Shanghai Composite Index dropped 5 percent since last Tuesday to close at 2,807 on Monday.
"The rebate cut, which was triggered by international trade conflicts, contributed to a drop in the stock prices of steel firms," said Yang Baofeng, an analyst at Orient Securities.
However, Yang and other stock analysts remain confident about the longer term prospect of steel companies' shares because of the expected increase in the steel price.
"The impact of the cut will soon wear off due to rising international steel spot prices, " Yang said.
The Chinese government reportedly plans to reduce tax rebates on the export of selected steel products from 11 percent to 5 percent, while completely removing rebates on steel wires and plates. Details of the plan have yet to be announced by the government, but they are widely expected to be released in the first half of this year.
Reports on the rebate cuts came at a time when the stock market was hit by a wave of profit taking. It was another blow to many steel shares, the analysts said.
"The effect of overall correction from the overheated stock market triggered a slump in steel stocks. Prices of some steel companies had gone too high," said Gu Yaoqiang, an analyst at Haitong Securities.
The latest fall in shares could make steel companies more appealing to investors who believe that rising prices for the metal could boost profits for some producers.
Wuhan Steel Processing Co Ltd and Angang Steel Company Limited recently raised their spot steel prices for March by about 5 percent in line with rising international prices.
Yang predicted that stock price weakness would be short term.
Analysts at CITIC Securities agreed and said that the rise of spot steel prices would raise the valuation of steel companies.
China's steel exports jumped 110 percent to 43 million tons, while imports fell 28 percent to 19 million tons in 2006. More than 60 percent of the exports went to the Republic of Korea, the European Union and the United States.
"The large steel price gap between the domestic market and the international market contributed to the increasing steel exports," said Luo Bingsheng, vice-chairman and secretary-general of the China Iron and Steel Association. Luo said that China's steel industry was often threatened by international anti-dumping complaints, but CISA continues to talk with international steel associations to relieve trade conflict. The nation adjusted tax rebates three times since 2005, including a reduction on some selected steel products from 11 percent to 8 percent last September.
"Steel exports in 2007 are expected to be lower or equal to the amount in 2006," Luo added.

Steel Exports Predicted to Decline This year(2007/02/16)
China recorded a double-digit decline in steel exports from December to January and the decline is likely to continue throughout the year, the China Iron and Steel Association said on Tuesday.
Qi Xiangdong, vice secretary-general of China Iron and Steel Association, attributed the downward trend to a slowdown in production and reduction in tax rebates.
Qi predicted that net exports of rolled steel and steel billets would decrease by 10 million tons for the whole year.
According to the General Administration of Customs, China exported 4.38 million tons of steel in January, up 142.2 percent on last year. But the figure decreased by 21 percent from December last year.
In January, the nation imported 1.48 million tons of steel, down 6.2 percent from a year earlier.
Last year China became the world's largest exporter of steel, with an export volume of 43 million tons.

China Pursues Talks over Steel Trade Disputes(2007/02/09)
China is trying to resolve steel trade disputes in discussions with the United States, the European Union and the Republic of Korea, the three major importers of China's steel, said Luo Bingsheng, Vice Chairman and Secretary-general of the China Iron and Steel Association (CISA).
"China has been talking to these countries since last year", said Luo. "We have made legal preparations in case of an anti-dumping move aimed at China."
Luo denied China has dumped its steel to foreign countries at unfairly low prices although its steel exports grew sharply last year.
China's steel industry generated record a 170 billion yuan in gross profits in 2006, up 39.8 billion yuan, or 30.6 percent year on year.
CISA statistics show that China exported 43 million tons of steel last year, up 109.85 percent from the previous year.
More than 60 percent of China's steel exports went to the United States, the European Union and the Republic of Korea, leading to trade disputes between China and those countries.
So far, 11 countries have launched 27 anti-dumping or anti-subsidy investigations against Chinese steel producers, involving a total business volume of US$900 million.
Steel producers in the United States and the American Iron and Steel Institute appealed to U.S. trade officials twice last year, demanding that action be taken against China's alleged subsidies to its steel manufacturers.
"China's steel exports rose on the back of higher demand and a high price on the international market," Luo said. "The price of China's steel is generally consistent with the world market."
He predicted the gross profit of China's steel industry this year would remain at last year's level, but the growth rate of exports may drop slightly as new taxation and industrial policies on energy-and-resources consuming products begin to bite.
"China will export about 10 percent of its steel production this year," said Luo.
Other steel producer countries exported on average 40 percent of their production from 2001 to 2005, said Qi Xiangdong, CISA deputy secretary-general.

China Slows Down Investment in Steel Industry, Shifts Emphasis to High-end Projects(2007/02/07)
Investment on fixed assets in China's iron and steel sector reached 260.3 billion yuan (about US$33 billion) last year, which Luo Bingsheng, vice-chairman of the industry's association, termed excessive.
But he noted growth of the investment has slowed down significantly to 0.81 percent year-on-year last year, 23.69 percentage points lower than the growth of the national total investment on fixed assets.
Luo warned iron and steel enterprises that the country's production capacity has outstripped market demand.
Luo said the emphasis of investment has shifted to high-end projects to produce more value-added products.
China produced 418.78 million tons of crude steel last year, a rise of 18.48 percent year-on-year, and its output of pig iron was 404.17 million tons, up 19.78 percent year-on-year.
China's apparent consumption of crude steel amounted to 384.05 million tons last year, accounting for 30.98 percent of the global total.
Domestically-made steel products accounted for a record 95.82 percent of China's steel market last year, 2.61 percentage points higher than the previous year.
China became the world's largest stainless steel producer last year with an output of 5.3 million tons, up 67.68 percent year-on-year.

Crude Steel Output Up 18% in 2006(2007/01/30)
Crude steel output in China, the world's largest steel producer, surged 18.48 percent year-on-year to reach 418.78 million tons last year, according to the nation's top economic planning agency.
The National Development and Reform Commission said in a report that production of pig iron in China jumped 19.78 percent on the year-on-year basis to 404.17 million tons, while the output of steel products was up 24.45 percent to 466.85 million tons.
The commission said that in spite of macroeconomic policies, the nation's steel sector in China still expanded fast due to huge market demand boosted by the booming economy.
It noted that a large number of illegal and backward steel firms have been established across the country since 2003 to cash in on the huge business opportunities.
The government will focus on restructuring and closing the small, heavy-polluting steel companies and reducing energy consumption in the steel industry in the coming four years through 2010, according to the commission.

Higher Requirements Imposed on Iron Ore Importers（2007/01/26）
The Chinese government will cut the number of iron ore importers to 90 this year in a bid to tighten import rules and curb soaring international prices, the industry association has said.
Up to 20 percent of China's 118 iron ore importers -- 70 steel mills and 48 trading companies -- would go out of business, the China Iron and Steel Association (CSIA) said at the industry meeting held in the southwestern Kunming city.
The government began to cut the number of iron ore importers from 500 in 2005 to curb demand that had fueled price rises.
Industry consolidation was needed to curb the excessive number of importers, said CSIA vice chairman Luo Bingsheng.
The tighter rules require importers to double their minimum registered capital to 20 million yuan and a minimum annual production capacity of crude steel of one million tons.
Importers also have to comply with strict resource saving and environmental requirements, such as the 741.05-kilogram limit on the coal equivalent consumption to produce one kilogram of steel.
Water consumption of per ton of iron is limited to 8.03 tons.
The State Council has ordered closure of furnaces with a maximum volume of 200 cubic meters by the end of 2007.
All outmoded steel mills will be closed by the end of the year, and the deadline is likely to move forward if further price hikes occur.
China is the world's biggest producer and consumer of steel and iron ore imports rose 18.2 percent to a record 325 million tonnes last year.
China's largest steelmaker, the Baosteel Group Corp., settled on a 9.5-percent increase in the iron ore price for 2007 with major Brazilian producer Companhia Vale do Rio Doce (CVRD).

China becomes world's largest stainless steel producer（2007/01/24）
China has become the world's largest stainless steel producer with its output exceeding five millions tons in 2006 for the first time, up 60 percent or three million tons from 2005.
The growth more than quadrupled the world average of 14 percent projected by the MEPS, a UK steel consultancy.
The world's total stainless steel output was expected to hit 27.8 million tons last year, about 3.4 million tons more than the previous year.
China's National Development and Reform Commission attributed the production boom to a wealth of projects approved in 2005, involving Taiyuan Steel, Baosteel and Jiuquan Iron and Steel Group.
China's stainless steel production capacity reached 12 million tons by December 2006 with no less than 20 new plants to commence production this year.
World demand for the raw material of stainless steel, nickel, has shot up. Chinese steel plants were expected to consume 200,000 tons of nickel this year and 400,000 tons in next few years, said CRU, a London-based independent consultancy group focusing on metals and energy.

Steel Price Expected to Remain Steady in 2007(2007/01/22)
China will see a balance of supply and demand for steel in 2007, with the steel price remaining close to last year's level, according to a report released Tuesday by the National Development and Reform Commission (NDRC).
The average steel price in 2007 is expected to be around 3,800 yuan (about US$507) per ton, slightly higher than last year's 3,737 yuan (about US$498), the report says.
It says that the country's raw steel output in 2007 is projected to be 462 million tons, up 10 percent year-on-year, eight percentage points lower than the growth in 2006.
Domestic steel demand will also grow by about 10 percent, indicating an equilibrium of supply and demand.
The International Iron & Steel Institute (IISI) predicted in an earlier report that the international steel market would see a balanced supply and demand situation in 2007, with steel prices remaining at a relatively high level.
IISI estimates global consumption of steel will reach 1.18 billion tons in 2007, up 5.2 percent on 2006.

China expects steel price to remain steady in 2007（2007/01/19）
China will see a balance of supply and demand for steel in 2007, with the steel price remaining close to last year's level, according to a report released Tuesday by the National Development and Reform Commission (NDRC).
The average steel price in 2007 is expected to be around 3,800 yuan (about 507 U.S. dollars) per ton, slightly higher than last year's 3,737 yuan (about 498 U.S. dollars), the report says.
It says that the country's raw steel output in 2007 is projected to be 462 million tons, up 10 percent year-on-year, eight percentage points lower than the growth in 2006.
Domestic steel demand will also grow by about 10 percent, indicating an equilibrium of supply and demand.
The International Iron & Steel Institute (IISI) predicted in an earlier report that the international steel market would see a balanced supply and demand situation in 2007, with steel prices remaining at a relatively high level.
IISI estimates global consumption of steel will reach 1.18 billion tons in 2007, up 5.2 percent on 2006.

Shanxi brought forward general target of metallurgical products and structural adjustment during the 11th Five-Year Plan period（2007/01/17）
According to Shanxi Province Metallurgical Industry Development Plan during the 11th Five-Year Plan period, by 2010 the province would be in a position to produce pig iron of 8 million tons, crude steel of 8 million tons, finished steel of 9 million tons, iron concentrate of 5 million tons, metallurgical coke of 8 million tons and ferroalloy of 300,000 tons, achieve industrial gross value of 30 billion yuan and industrial added value of 5 billion yuan. The general idea of industry structural adjustment is to control gross volume, improve layout, enhance quality, lower consumption, reduce pollution and gain benefit.
In order to boost the structure of product, technology and investment, Shanxi banned adopting backward process, technology and facilities to produce outdated products and maintained proper growth in iron- and steel-making capacity according to entry permission as regards to controlling gross volume; quickened the development of special and premium steel based on regional advantage and rapid growth demands from heavy auto, power facility, oil and gas transportation and engineering machinery in the light of quality; shifted production capacity and gradually reduced numbers of steel producers through acquisition, consolidation and elimination in terms of improving layout.
The purpose of structural adjustment in metallurgical products in the province is to enlarge product ranges, enhance product grade and added value, achieve changes from lower value and single materials such as pig iron, billet, construction steel and coking coal to high-speed wire, premium shapes, sheet/strip, pipeline and chemicals as well as focus on products with promising market, high-tech contained, high value added, strong competition and being capable of scale producing like hot and cold rebar with high strength 400Mpa, hot rolled sheet/coil, high-speed wire, premium steel wire and products, compound materials, materials with new function and parts, high precision wide cold rolled thin strip, methanol, fine benzene, components of blast furnaces, continuous casting facilities and rolling mills.

Steel industry in Liaoning Province brought forward 6 weatherproofed measures(2007/01/11)
Liaoning Province Industry Economy conference released a guideline for the development of local metallurgical industry in 2007 on January 5, 2007. The province is expected to produce pig iron of 39 million tons, crude steel of 39 million, finished steel of 41 million tons and 10 non-ferrous metals of 500,000 tons in 2007, and complete industrial added value of 85 billion yuan as well as achieved revenue of 30 billion yuan including 16 billion yuan of profit.
Six measures should be attached to great importance for the whole year of 2007:
1. To manage economic operation and ensure a healthy development of the metallurgical industry;
2. To expedite the construction of key projects and make sure new projects complying with targets;
3. To advance technology innovation and struggle to realize optimization and upgrading for product structure;
4. To aggressively encourage recycling economy;
5. To quicken the pace to eliminate backward capacity;
6. To spread the steel industry chain and develop industry group.