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Panzhihua Steel develops high-speed rail switch(2009/9/15)

 Panzhihua Steel, a leading rail producer, has successfully developed China’s first 50-meter rail switch 60D40 for high-speed trains with quality and sizes all meeting the requirements. The success was based on the techniques the mill used to roll out the country’s first 100-meter 350 kmh rail and 28.8-meter rail switch in 2005.

Wisco’s presence in Hubei soars (2009/9/10)

 Data showed Hubei-headquartered Wisco sold 3.89 million tons of steel products to customers within the province in the eight months to August, close to the four million tons it sold in the whole year 2008. 36 key steel-consuming customers in Hubei bought 756,100 tons of steel from the mill, of which 410,700 tons, or 54 percent, were bought by the auto, shipbuilding, bridge and railroad sectors. Wisco’s share in the province is expected to jump from 45 percent last year to 80 percent by the end of this year.

CRM to participate in two Australia’s iron ore companies(2009/9/10)

 China Railway Materials Corporation (CRM) announced it had agreed to purchase 12 percent of shares of Ferr Aus Ltd, an emerging iron ore producer in Australia, for about A$12.6 million so as to win the chance of exploiting iron ore in eastern Pilbara, West Australia. In a separate deal, CRM is looking to join its forces in the development of Railway Iron Ore Deposit in the company with United Minerals Ltd by taking over 11.38 percent share in the latter for A$27.2 million. Both deals are still pending upon the approval from China’s relevant authorities.

Baosteel cuts prices for October shipment(2009/9/9)

 Baosteel has informed its customers of cutting steel prices for October shipment following two quarters of price rise in a row. The new price of hot rolled pickling and color coating will be slashed by 200 to 500 yuan per ton from September to 4,442 yuan per ton on average while shipbuilding steel, wide heavy plate and cold rolled prices remain unchanged. Yet the group’s prices of some products are higher than the average levels. Buyers who deemed the prices still unworkable have no option but to trim or even drop orders. Experts say other mills will likely follow suit encouraged by their strongly profitable Q3 results.

IMC to build iron ore dock in Qingdao(2009/9/8)

 IMC Group of Singapore, a leading international group dedicated in bulk cargo and oil transportation, has signed an outline deal with the Qingdao municipal government to build a 400,000 t/y iron ore dock in Dongjiakou port area, Jiaonan City for $350 million.
The port area, boasting a nature coastline of 29 kilometers, has invited a total investment of more than 30 billion yuan since this May with the number of projects valued at 100 million yuan each surpassing ten, and will complete a infrastructure investment of 12 billion yuan, create jobs of more than 200,000 and shape a throughput of up to 50 million tons per year in the next three to five years.

Shandong Steel agrees reshuffle deal(2009/9/8)

 Shandong Iron and Steel Group Co Ltd (Shandong Steel) finally signed a merger deal on September 6 with Rizhao Iron and Steel Holding Group Co Ltd (Rizhao Steel) to inject an unspecific amount of cash into Shandong Steel Rizhao Co Ltd for 67 percent of shares, while Rizhao Steel will hold the remaining 33 percent with its net assets through perspective assessment. Rizhao Steel, a large non-governmental run steelmaker in Shandong and one of the ten largest mills in China, registered a net profit of about 1.8 billion yuan in the first half of this year; whereas Jinan Steel and Laiwu Steel, two major subsidiaries of the solely state-owned Shandong Steel that launched on March 26 last year with a registered capital of 10 billion yuan, incurred a combined loss of 1.29 billion yuan during the same period.

China's Shougang aims for 30 mln-tonne annual capacity(2009/9/7)

 BEIJING, Sept. 3 (Xinhua) -- Shougang Group, China's eighth largest steel maker, will expand its annual production capacity to 30 million tonnes by 2012 with new projects in Caofeidian and consolidation in other regions, reported Thursday's China Daily.
The company will start production at its new steel mill at the Bohai Bay island land reclamation economic development site on the northern Chinese coastline by the end of 2010, said the newspaper.
The mill will have an initial capacity of 9.7 million tonnes a year. Production will start after Shougang' s Beijing factory shuts down next year, the newspaper said, citing the company's chairman Zhu Jimin.
The company is the parent of Shenzhen-listed Shougang Iron and Steel.
Zhu said the Caofeidian factory was still undergoing trials. The project is part of Shougang's efforts to shift its production facilities away from Beijing in an effort to reduce pollution in the capital and cut costs.
The new mill, which will mainly produce flat steel products such as cold-rolled coil used in auto-making and the home appliance sectors, is near iron ore ports.
The Beijing factory site will be used to develop a wide range of different industries including high-end material, high-end machinery, real estate development, auto spares production, tourism, and culture creativity. This will generate an additional 100 billion yuan (14.64 billion U.S. dollars) a year, according to Zhu.
Shougang aims to further boost its production capacity by launching new projects and acquiring smaller mills in other provinces and autonomous regions, including Guizhou, Shanxi, Xinjiang and Hebei to reach the desired annual capacity of 30 million tonnes by 2012.
The company produced 12 million tonnes of steel products last year.

Aquila, Baosteel strategic cooperation focuses on win-win outcome(2009/9/7)

 CANBERRA, Sept. 3 (Xinhua) -- Strategic cooperation between Australia's Aquila Resources and China's Baosteel focuses on win-win outcome, General Manager of Iron Ore, Aquila Resources told Xinhua on Thursday.
Russell Tipper said in a telephone interview with Xinhua that the agreement signed on Aug. 28 between the two provides a foundation for long-term strategic cooperation and will ease the burden of cash to develop Aquila's key projects like Coal project in Queensland, Iron ore project in Western Australia.
He said some of Aquila's projects will require large capital to bring it into production.
In answering Xinhua's question whether the agreement will be approved by Foreign Investment Review Board (FIRB), Tipper said "I am confident the FIRB will agree that Chinese Baosteel's participation would be good for both their projects and Australia."
After the transaction, Baosteel will take a 15 percent stake in the Australian miner and will appoint one director to the board of Aquila. Tipper believes this will not cause concern, saying that "the Baosteel will have up to 19.9 percent of Aquila's stake and it will not control Aquila."
Tipper said with the access to low-cost Chinese financial institutions as outlined in the agreement, Aquila plans to expand two major projects, the West Pilbara Iron Ore Project in Western Australia as well as the Eagle Downs Coal Project in Queensland, adding that "this will include the building of Aquila's own railway networks and a new port."
In an early interview with The Australian, chairman Poli said that he believes "the strategic co-operation is all about assisting Aquila, and not managing or controlling them." He said "China is very keen to invest in Australia and, with this transaction, we should have no problems with FIRB."
Under the agreement, Baosteel will invest as much as 285.6 million dollars (237 million U.S. dollars) in Aquila via a placement of up to 43.95 million shares at 6.50 dollars a share which Tipper has said "was acceptable to both parties to achieve the win-win outcome."
Aquila Resources Limited, headquartered in Perth, Western Australia, home to Australia's abundant Iron ore resources, has major projects of coal, iron ore, manganese locating in Queensland, Western Australia and South Africa.

Beijing steel giant says annual output to reach 30 mln tonnes (2009/9/4)

 BEIJING, Sept. 2 (Xinhua) -- Shougang Iron and Steel Group expects its annual steel output to reach 30 million tonnes by 2012,two years after its Beijing facilities are to be shut down, the group's chairman said Wednesday.
Shougang, meaning "Capital Steel", was Beijing's biggest polluter before it began cutting output at its Beijing plants for last year's Olympics. It is now moving production to a 10-million-tonne, state-of-the-art mill on the nearby coast of Hebei Province.
The 21-square-kilometer new plant in Caofeidian, an islet 220 km east of Beijing, will replace Shougang's old facilities in Beijing next year, to become the country's largest steel production base.
"The new plant will produce 9.7 million tonnes by the end of next year," said Chairman Zhu Jimin at a Beijing assembly commemorating the group's 90th founding anniversary.
He said the group would further expand production by launching new projects as well as merging and acquiring smaller plants in different provinces.
In its latest expansion plan, Shougang last month acquired 90 percent of the equities of Changzhi Iron & Steel Co., Ltd., a 3.6-million-tonne plant in the northern Shanxi Province.
"By 2012, we'll be producing 30 million tonnes of steel a year," said Zhu.
Meanwhile, the Beijing factory site will become a development zone for a wide range of industries including logistic services, real estate development and auto spares production, which will yield an additional 100 billion yuan (14.7 billion U.S. dollars) a year, he said.
Founded in 1919, Shougang is widely considered the flagship of China's heavy industry. With its production base just 17 km west of Tiananmen Square in central Beijing, however, it has long been blamed for causing heavy pollution as the plant's chimneys belch out thick clouds of smoke.
Its Beijing plant produced more than 12 million tonnes of steel annually before it was forced to cut output and pollution in 2007.
Last year, the plant said it cut output and pollution by 70 percent to ensure better air quality for the Beijing Olympics.

Shougang profits 289 mln in Aug.(2009/9/4)

In August, Shougang produced 48,400 tons more competitive products than its original plan, made a profit of 289 million yuan and reduced 392 million yuan in costs. Output of pig iron, steel and steel products also surpassed the planned amount. The positive results were achieved in the mill’s run-up to the celebration of its 90th anniversary as well as of China’s 60th anniversary.

Wisco targets world’s top 500 by 2010(2009/9/3)

Wisco has now developed into a steel giant with an annual capacity of 30 million tons, compared with merely 1.5 million tons it produced in the 1960s. Since the group began production on September 13, 1958, it has produced more than 200 million tons of steel in aggregate and levy over 70 billion yuan in taxes, tenfold as much as its own investment. The pressing, crucial task for the group is to become one of the world’s top 500 firms in 2010 by establishing an internationally competitive premium steel base centered on cold rolled silicon steel, auto sheet and engineering structural steel.

China’s first self-IPR EG line starts(2009/9/3)

Hebei Iron and Steel Group Handan Steel has successfully turned a color coating production line imported from South Korea into a 120,000 t/y electric galvanized (EG) line with proprietary intellectual property rights for an investment of more than 60 million yuan. As of the press time, the line had produced 54.8 tons of EG sheet with 0.8 mm, 1.0 mm and 1.2 mm in length and 1,250 mm in width. The products target high-grade home appliances, computers and auto for use.

Reshuffle of Shandong steel industry at hand(2009/9/1)

Shandong Iron and Steel may strike a deal soon to take over 67 percent of shares of Rizhao Iron and Steel for 10 to 16 billion yuan as a platform to establish Rizhao Premium steel base. Proposals will not be released this time about how to deal with the remaining 30 percent of shares in Rizhao Steel owned by Du Shuanghua, China’s richest steel tycoon with a personal fortune of 35 billion yuan, who has already injected its equity into a Hong Kong-listed firm, Kaiyuan Holdings.

Baosteel agrees to buy 15% stake in Australian miner Aquila(2009/9/1)

SHANGHAI, Aug. 28 (Xinhua) -- Baosteel Group, China's largest steel maker, said Friday it has agreed to pay 285.6 million Australian dollars (240.7 million U.S. dollars) for a 15-percent stake in Australian miner Aquila Resources.
Baosteel will buy up to 43.95 million shares in Aquila at 6.5 Australian dollars a share.
The deal, which will make Baosteel the second-biggest shareholder in Aquila, is still to get approval from Australian and Chinese regulators.
The company executives valued the growth potential of Aquila's assets in the deal that is another major step in its overseas expansion, said a statement on Baosteel's website.
Baosteel established a joint venture with iron ore giant Rio Tinto in 2001 and Companhia Vale do Rio Doce (CVRD) in 2002 to secure iron ore imports.
In a press release, Aquila said the deal was "an important transaction in Baosteel's strategy to secure long-term supply of critical steel raw materials."
The strategic cooperation will "fast-track the development of Aquila's key steel raw materials projects including iron ore, coal, and manganese," said the statement.
Baosteel would possibly make further direct investment into a number of its projects and help it get low-cost financing from China for most of its major projects, including the strategic West Pilbara Iron Ore Project, said the Aquila statement.
It added that the state-owned Chinese steel mill had agreed not to hold more than 19.99 percent of Aquila before August 2010.
Shares in Aquila surged 9.16 percent, or 60 Australian cents, to 7.15 Australian dollars Friday.

Pangang S&V posts huge H1 losses(2009/8/31)

Pangang Steel and Vanadium has reported a net asset per share of 2.74 yuan in the first half of this year, down 3.52 percent; an attributable net profit of minus 1.34 billion yuan, down 318.52 percent; an earning per share of minus 0.23 yuan, down 291.67 percent; and a return on net assets of minus 8.53 percent, down 12.34 percent.

Baosteel buys 15 percent stake in Aquila(2009/8/31)

Baosteel Group agreed to buy no more than 43.95 million shares, or 15 percent on fully diluted basis, of Australia’s Aquila in an all-cash deal valued at A$290 million, allowing the Chinese mill to become the iron ore company’s second largest shareholder. The deal is still pending upon the approval from relevant authorities of both countries.

Benxi Steel, Valin Steel incur H1 losses(2009/8/28)

Benxi Steel posted a loss of 910 million yuan in the first half of this year, down 189.6 percent year-on-year; an operating revenue of 16.46 billion yuan, down 12.3 percent; and a basic earning per share of minus 0.29 yuan. Meanwhile, Valin Steel also reported a 523 million yuan loss, down 165.14 percent; an operating revenue of 19.94 billion yuan, down 27.1 percent; and a basic earning per share of minus 0.19 yuan. The decline in profits was undoubtedly attributed to falling demand and lower prices. Valin Steel was running at a less desirable capacity as there was a general lack of orders in the first half.

Bayi Steel incurs H1 losses(2009/8/27)

Bayi Steel recorded a H1 loss of 182 million yuan, equivalent to a 0.24 yuan loss per share, citing weak demand and falling prices as main reasons. In the first half, the mill produced 2.41 million tons of steel, up 2.37 percent year-on-year; 2.27 million tons of steel products, up 1.17 percent; and had an operating revenue of 7.52 billion yuan, down 27.82 percent. It predicated a year-on-year contraction of more than 50 percent in net profits in the three quarters.

Shougang enters auto parts sector(2009/8/26)

The Committee on Foreign Investment in the United States (CFIUS) has formerly approved the acquisition of Delphi’s brake and suspension units including intellectual property rights by Beijingwest Industries Co, a three-party auto spare parts joint venture involved by Shougang Group. Delphi is one of the world’s largest suppliers of auto spare parts with sales revenue reaching $600 to $700 million annually in its brake and suspension units, which were split off from parent General Motors in 1999.

Fushun Special produces XF-1 die steel(2009/8/26)

Fushun Special Steel produced a new type of XF-1 die steel featuring low temperature in plastic deformation and a strong overheated sensitivity for a client in Guangdong. This was the first time in China to produce such steel with a 650# rolling mill fed with low temperature billet.

Baotou Steel to invest in pellet project(2009/8/24)

Baotou Steel plans to invest 260 million yuan in a 1.2 million t/y oxidized pellet project, in cooperation with Inner Mongolia Dazhong Mining Co Ltd, for an 86.67 stake in the joint venture. The project, as an accompanying raw material item gearing to the mill’s 10 million t/y steel program, is expected to have sales revenue of 840 million yuan and an aggregate profit of 68.47 million yuan in three years while running at full capacity. Baotou Steel made a loss of 747.52 million yuan in the first half of this year, with Q3 losses expected to be 0.2 to 1 billion yuan.

Shougang’s H1 profit down 82.77 percent(2009/8/21)

Shougang posted a net profit of 94.87 million yuan in the first half of this year, down 82.77 percent from 550 million yuan a year earlier; a gross revenue of 10.87 billion yuan, down 25 percent from 14.48 billion yuan, basic earnings per share of 0.032 yuan, down 82.76 percent from 0.1856 yuan; and a return on equity of 1.22 percent, down 5.81 percentage points. It produced 2.12 million tons of pig iron, 2.28 million tons of steel and 1.43 million tons of steel products over the period, completing 50.08 percent, 50.26 percent and 56.39 percent respectively of the yearly plan.

Lingyuan Steel returns to profit in July(2009/8/20)

Lingyuan Steel has reversed several months of losses since earlier this year by profiting over100 million yuan in July. With the help of a cost saving campaign launched in April, the mill has reduced the production costs per ton of steel by nearly 240 yuan. Additional 30 million yuan has been created through properly establishing marketing tactics and dealing with inventories. It had attained a comparative benefit of nearly 64 million yuan as of the end of July through offering more than 400,000 tons of steel to several national key projects such as the Beijing-Shanghai High-speed railway, Jilin Oil Field and Jilin High-speed Highways.

Valin Steel curtails funds in JV auto sheet project(2009/8/20)

Valin Iron and Steel decided on August 17 to make some adjustments in a plan reached with ArcelorMittal on June 27, 2008 to jointly invest five billion yuan in a Hunan-based auto sheet plant consisting of cold rolled and hot-dip galvanized lines with a registered capital of two billion yuan. Given changing conditions, however, the mill has planned to trim the total investment in the project to 4.5 billion yuan and the planned registered capital to 1.53 billion yuan. The project will have an annual capacity of 1.2 million tons and is due to be completed at the end of 2010.

Ferroalloy project to make Baotou debut(2009/8/19)

Mengli (Baotou) Ferroalloy Company will invest 250 million yuan to build a 300,000 tpy ferroalloy plant in Damaoqi, Baotou, along with a 200,000 tpy pellet plant, a 500,000 tpy sintering plant, a 60,000 tpy lime mill, a 250,000 tpy cement plant, a 200,000 tpy coking plant and a 12,000 kilowatts TRT unit. The project will generate a production value of 600 million yuan, offer job opportunities for 1,500 people and levy 60 million yuan in taxes per year.

Ansteel posts H1 losses(2009/8/19)

Ansteel posted a 1.56 billion yuan loss in the first half of this year, compared with 5.98 billion yuan profits in the same period a year before, down 126.14 percent, citing falling prices and oversupplies in domestic and overseas markets triggered by the global economic downturn. It produced 9.27 million tons of pig iron, up 14.34 percent; 9.10 million tons of steel, up 11.18 percent; 8.52 million tons of steel products, up 10.78 percent; and sold 8.30 million tons of steel products, up 8.17 percent. The ratio of production to sales stood at 97.45 percent.

Fushun Special’s H1 net profits down(2009/8/18)

Fushun Special Steel said in its medium results that the company had main business revenues of 1.86 billion yuan in the first half of 2009, down 36.44 percent year-on-year; an operating profit of 12.07 million yuan, down 40.56 percent; a gross profit of 12.90 million yuan, down 39.26 percent; a net profit of 9.08 million yuan, down 47.97 percent; and earnings per share of 0.017 yuan. It produced 288,900 tons of steel and 230,400 tons of steel products during the period, largely the same amount as last year. According to the report, weak demand at home, a drop in selling prices and shrinking exports are held accountable for its plummeting profits.

Baosteel ends ties with Hanbao Steel(2009/8/18)

Baosteel has withdrawn all of its investment in Hebei-based Hanbao Iron and Steel for changing conditions involved in their equally shared partnership that formed in May 2007 to build a 4.6 million tpy premium steel base, allowing the latter to become a wholly owned subsidiary of Hebei Iron and Steel Group. In 2008, the Hebei government decided to set up a local steel giant by integrating Tangshan Steel and Handan Steel into Hebei Iron and Steel Group and further absorbing assets in surrounding small mills. According to the latest name list of China’s largest steelmakers released by the MIIT, Hebei Steel Group has ousted Baosteel as the country’s biggest steelmaker.

Echeng Steel targets three billion yuan in profit(2009/8/17)

In a working conference held on August 7, Echeng Steel planned to produce 100,000 tons more pig iron, 200,000 tons more steel and 200,000 tons more steel products in 2009 than what it first scheduled earlier this year. The mill has realized the target of profiting 100 million yuan five months ahead of the schedule, adding its confidence to making a profit of three billion yuan this year.

Dongbei Special completes share holding deal(2009/8/14)

Dongbei Special Group took an important step toward its merger plan on August 12 by injecting 70 million yuan into Anshan Dongya Precision Stainless Steel Co Ltd to become its controlling company. The latter mainly produces cold rolled precision stainless strip for food machinery, chemical machinery and auto parts manufacturers.

Baosteel raises prices for September shipment(2009/8/13)

Baosteel has decided to raise its price of hot and cold rolled, hot-dip galvanized and color coating sheet by 600 yuan per ton and that of non GO silicon steel by 900 yuan per ton as a second batch of its three-stage pricing policy for September shipment, citing stronger demand from its downstream sectors thanks to the gradual recovery in the macro economy. The price of GO silicon steel remained unchanged. A monthly pricing system has been introduced by Baosteel to replace the previous mechanism on quarterly basis. To cater closer to changing markets, the group has further decided to announce the new round of its pricing policy in three stages, with the prices of the last batch to be unveiled at the end of August.

Shougang partners with coal company(2009/8/11)

Shanxi Coal & Electricity Power Co Ltd announced on August 6 that it had agreed with Shougang Jingtang Iron and Steel Complex Co Ltd to set up Tangshan Shougang Jingtang Shanxi Coking Co Ltd with an equally shared registered capital of two billion yuan. Shougang Jingtang is a Tangshan based steel producer jointly owned by Shougang Group for 51 percent and by Tangshan Iron and Steel Group for 49 percent. Xishan Coal & Electricity Power produced 8.68 million tons of crude coal in the first half of this year, up 8.8 percent and had a net profit of 1.30 billion yuan, up 5.57 percent.

Laiwu Steel concludes cooperation deal(2009/8/10)

Laiwu Steel Group and China Overseas Holdings Limited (COHL) entered into a long-term strategic cooperation agreement on July 24. They will strive for a win-win outcome by sharing specific resources and markets of each other. As a subsidiary of China State Construction Engineering Corporation and founded in 1979, COHL mainly deals with businesses covering construction, property and infrastructure investment in domestic and overseas markets.

Baosteel signs supply deal(2009/8/10)

Baosteel has inked deals to supply its U-shaped pipe to China Guangdong Nuclear Power Group and Dongfang (Guangzhou) Heavy Industry Corp for the production of steam generators used in nuclear power stations. The mill poured a lot of money into an extrusion production line and a 690 U-shaped pipe production line in 2006, which are expected to be hot commissioned in the fourth quarter of this year.

Wisco raises prices for September shipment(2009/8/7)

Wisco decided to raise the price of hot and cold rolled steel by 800 yuan per ton for September shipment, and that of silicon steel by 1,100 to 1,600 yuan per ton, much higher than the average selling prices.

Panzhihua Steel awarded for special rail(2009/8/7)

The 100-meter rails dedicated to high-speed (350 km/h) passenger trains self developed by Panzhihua Steel Group have been included in the Government Purchasing List for its good performances after trial uses by customers. The product has found extensive application in the projects such as the Beijing-Tianjin High-speed Railway, the Beijing-Shanghai High-speed Railway and the Wuhan-Guangzhou Railway.

Baosteel expedites mergers in Guangdong(2009/8/5)

Baosteel Group is conducting due diligence on the net assets and equities of Guangzhou Iron and Steel Group (Guangzhou Steel) and Shaoguan Steel Group as part of efforts toward a substantial merger with the latter two companies into Guangdong Iron and Steel Group (Guangdong Steel). Although Guangdong Steel was set up last June to prepare to build Zhanjiang Iron and Steel Project, Guangzhou Steel and Shaoguan Steel are currently being operated individually and their assets have not yet been transferred to Baosteel since the Zhanjiang project is still awaiting the approval from the central government. Baosteel wants to speed up the consolidation activities by making use of the recent financial crisis that could help hold down the price bidding for the relevant assets.

ArcelorMittal cuts investment in China(2009/8/3)

ArcelorMittal decided to slash investment in an auto sheet joint venture with Valin Iron and Steel to 4.5 billion yuan from the original 5 billion yuan plan signed on June 27, 2008 that will see a cold rolled and hot-dip galvanized production line for auto being put into operation in 2010 with an annual capacity of 1.2 million tons. The registered capital of the JV has also been trimmed from two billion yuan to 1.53 billion yuan.

Baosteel to build JV chrome plant(2009/7/29)

Baosteel is planning to build a 100,000 t/y high carbon ferrochrome plant in cooperation with India’s Visa Steel this October. Baosteel will take a 70 percent stake in the plant which has a total capital of $54 million. Visa Steel runs a ferrochrome plant in Orissa with an annual capacity of 500,000 tons and the production in the plant is expected to increase to 40,000 tons this fiscal year ending March 2010.

Laiwu Steel loses nearly 600 million yuan in H1(2009/7/28)

Laiwu Steel posted a loss of 548 million yuan in the first half of this year due to the unfolding of the financial downturn, overcapacity in the steel industry and weak demand from both domestic and international markets. It produced 2.31 million tons of pig iron, 2.78 million tons of steel and 3.19 million tons of merchant billet in the first half of this year, achieved an operating revenue of 12.27 billion yuan, an attributable profit of minus 598 million yuan and earnings per share of minus 0.648 yuan.

Jinan Steel strikes mining deal(2009/7/27)

Jinan Iron and Steel Group Co Ltd, Huainan Mining (Group) Company and Hefei Sanyang Steel Company struck a strategic agreement on July 7 to strengthen the cooperation in the aspects of power, coal and steel products.

Chongqing Steel signs shipbuilding deal(2009/7/27)

A 4,100 mm wide plate project at the Changshou New Space belonging to Chongqing Steel will provide various domestic shipbuilders with thicker and wider-gauge shipbuilding plate in the next three years. The company has signed strategic deals with CSSC Guangzhou Shipbuilding Company and Fujian Shipbuilding Industry Group to ensure a stable outlet for its products.

Ansteel unveils two financing plans(2009/7/24)

Angang Steel plans to issue no more than 217 million H shares, or 20 percent of its total H stocks, at a market price to raise about HK$3 billion if calculated at HK$14.92 per share closed yesterday (July 22). In another plan, the mill is slated to publish, in two terms, no more than six billion yuan worth of one-year-term financing bonds in the Chinese inter-bank bond market at an estimated interest rate of 2 to 2.5 percent.

Shandong Steel to speed up consolidation(2009/7/24)

Jiang Daming, governor of Shangdong Province, reiterated the importance of boosting a substantial merger inside Shandong Iron and Steel Group at a conference held on July 22, stating the move is in line with the national industry policy, is a pressing necessity to promote Rizhao Iron and Steel project and a must for preserving and improving the value of state-owned assets. The group should move into a powerful giant, focus on diverse businesses along the coastal areas, strengthen organic management, give full play to its advantages in planning, investment, finance, personnel, purchase, marketing and research, and ensure a safe production.

Stainless seamless pipe line trial launched(2009/7/23)

Tisco succeeded in test running the world’s largest stainless seamless steel pipe project on July 21 with an annual output of 50,000 tons. The project, which started construction on March 2008, will produce medium and high-end stainless and high-alloy seamless pipe for the oil, petrochemical, boiler power and nuclear industries.

Bayi Steel posts H1 losses(2009/7/22)

Xinjiang Bayi Iron and Steel reported a loss of 182 million yuan in the first half of this year due to higher raw material costs and plummeted selling prices as a result of the economic downturn. This compared a 411 million yuan profit during the same period of last year.

Wisco’s GO silicon for large transformer(2009/7/21)

Last year, Wisco produced 50,000 tons of high magnetic induction grain oriented silicon steel, a material that can be used as alternative to similar imports to produce 220KV transformers and whose rolling process is 5 to 6 times more complicated than regular ones. The MIIT has urged the mill to make more contributions to the localization of such materials by developing, in combination with relevant research groups and manufactures, high magnetic induction GO silicon steel for larger 500KV transformers by the end of this year.

Xinxing Ductile Pipe posts interim results(2009/7/20)

Xinxing Ductile Pipe became the first steelmaker who has released its first-half business results among the steel sector of the mainland securities markets. The company had an operating profit of 729 million yuan, up 23.52 percent year-on-year; a gross profit of 780 million yuan, up 27.2 percent; an attributable net profit of 472 million yuan, up 21.19 percent and earnings per share of 0.4 yuan. The company attributed the higher-than-expected rally to the recovery of macro economy caused by the government’s four trillion yuan stimulus package.

CRM to buy more rail from Panzhihua Steel(2009/7/17)

China Railway Materials Commercial Corporation (CRM) will buy 750,000 tons of rail this year from Panzhihua Steel, up from 500,000 tons in 2008, according to a strategic partnership agreement reached recently between the two companies. This agreement came after the two parties’ last December cooperation, in which CRM Chengdu Branch agreed to take a stake in Panzhihua Steel Group Meishan Cold Formed Sections for 7.2 million yuan.

Merger plan reviewed in Pangang Steel & Vanadium(2009/7/16)

Pangang Steel and Vanadium announced on July 15 a new capital injection plan that will invest 8.49 billion yuan in Panzhihua Steel and Vanadium Co Ltd, 4.71 billion yuan in Chengdu Steel and Vanadium Co Ltd and 1.10 billion yuan in Jiangyou Special Steel Company, all in the form of net assets concerning iron, steel, vanadium, steel rolling, coking, special steel plants, rail, pipe making, wire rod mills, power stations, scrap processors, logistics and service centers, railway and road transportation divisions, trade houses and mining assets. The company also warned a first-half loss of 1.3 to 1.4 billion yuan in the announcement.

Shaogang Songshan suffers huge losses in H1(2009/7/15)

 Shaogang Songshan is expected to make a loss of 210 million yuan in the first half of this year due to lackluster demand, surplus in overall capacity, plummeting exports and the financial crisis. This compared to a profit of up to 443 million yuan in the same period of last year. Tisco also posted a loss of 650 to 700 million tons citing the same reasons. According to official data, 72 key mills in the mainland recorded a combined profit of 1.26 billion yuan in May despite over 20 were still losing money.

Ansteel signs freight contract for iron ore(2009/7/14)

 Ansteel entered into a long-term Contract of Affreightment with STX Group, a renowned shipbuilding and shipping company in South Korea, on July 10, following the two parties concluded a MOU on iron ore transportation in 2007. The latest move, intended to transport iron ore from Australia and Brazil to China, will not only help Ansteel reduce logistics costs, guarantee a stable and adequate iron ore supply for its Bayuquan New Space project, but also cushion the impact from the global economic downturn for the two firms.

Ansteel marks 60th anniversary(2009/7/13)

 Ansteel, dubbed the cradle of China’s steel industry, marked its 60th anniversary on July 9. The mill has so far produced 381 million tons of crude steel, 375 million tons of pig iron and 277 million tons of steel products since it officially began production on July 9, 1949. Through 60 years of development, it has developed into a cross regional, multi base, diversified and international super large integrated steelmaker dealing with metallurgical machinery, the research of coking & refractory materials and deep processing for steel, and combined a production flow of ore mining and dressing, pig iron making, steel making and steel rolling, with an annual steel capacity of 25 million tons. Ansteel will become one of the world’s ten largest mills by 2015.

Bayi Steel reverses losses in May(2009/7/9)

 Bayi Steel turned up as a gainer in May after suffering losses for four months running. The mill sold more than two million tons of steel in the Xinjiang area in the January to May period, almost realizing its goal of selling 70 percent to local market. The mill began to receive more orders from May since the Xinjiang government has decided to invest 300 billion yuan this year in several key projects intended to expand local consumption.

Laiwu Steel may incur interim losses(2009/7/8)

 Laiwu Steel warned an interim loss in the first half of this year due to weak demand from domestic and overseas markets caused by the global financial crisis, surplus in overall capacity and the slowdown of steel price increase. The mill made a profit of 653 million yuan with earnings per share of 0.71 yuan during the same period of last year.

Valin Group makes profit in June(2009/7/8)

 Valin Group made a profit of 134 million yuan in June with its subsidiaries including Xiangtan Steel, Lianyuan Steel and Hengshui Steel reversing the state of losses. In the January to June period, the group had sales revenue of 24.17 billion yuan. The group has attributed the success to a three-step program that covers the construction of strategic key projects, deliberately buying resources assets from home and abroad and formulating an industrial investment fund with China Huarong Asset Management.

Handan Steel develops auto-grade CR sheet(2009/7/7)

 Handan Steel successfully produced 264 tons of H400 cold rolled sheet for 400 Mpa auto parts with a tensile strength of more than 400 Mpa and a elongation rate of over 25 percent.

Wisco speeds up tapping overseas resources(2009/7/7)

 Wisco became the world’s 7th largest steelmaker last year but its heavy reliance on imported iron ore seemed constant. To reverse this disadvantage, the mill acquired the prospecting and development rights of an iron ore resource in Africa earlier this year, followed by a $240 million investment of becoming the largest shareholder of Canada’s CLM and of getting involved in Bloom Lake mine of CLM, an agreement concluded with Australia’s WPG on jointly developing a deposit in Southern Australia, non-binding offers for 9.9 percent of shares in MMX and 23 percent of shares in a MMX’s subsidiary worth $400 million in total and an intention to build a five million t/y of steel plant there, as well as the recent move in which Wisco signed strategic agreements with Brazil’s EBX for further cooperation in the fields of resources development, steel projects and raw material supplies.

Dongbei Special targets wind power steel(2009/7/6)

 Dongbei Special Steel produced 30 tons of GCr15SiMnф80 mm low titanium bearing steel for roller bearings in a wind power project. The steel is of high quality with a titanium content of no more than 0.003 percent, a strict limitation on macro inclusions and 20 years of service life. The SKF3 standard should be met on non-metal micro inclusions.

Wisco partners with EBX(2009/7/3)

 Wisco has signed a strategic cooperation deal with EBX Group of Brazil at Wuhan to collaborate in the fields of iron ore development, the building of steel projects and steel supplies in a long-term, multi perspective and diversified way.

Baosteel raises prices in August(2009/7/3)

 Baosteel plans to raise the price of wire rod by 300 yuan per ton for August shipment, 200 yuan per ton for ordinary carbon and low alloy wide plate, 300 yuan per ton for boiler vessel steel and 150 yuan per ton for shipbuilding plate. No changes are made for pipe and billet and the prices of other main products will be announced in mid-July. The modest price revisions reflected Baosteel’s cautions about the recent recovery in the steel market.

Baosteel relocates wire rod facility to Nantong(2009/6/30)

 Baosteel is investing 430 million yuan in building a wire rod project in Nantong as part of a strategic transformation and structural adjustment program intended to research and produce high-tech and high value added wire rod and boost the development of the group’s main businesses.

Handan Steel produces X80 pipeline steel(2009/6/30)

 Handan Steel has become the second producer, next to Baosteel, capable of making X80 - the highest grade - pipeline steel with the content of harmful elements and sulfur far below the required standards after a trial production. The product, which can be used in highly demanding pipelines for oil and gas transportation, enjoys a promising outlook due to its higher strength and safer trait than X70 pipeline steel’s.

Pellet giant set to open in Guangdong(2009/6/29)

Zhanjiang Longteng Logistics Co Ltd set to launch China’s first five million t/y pellet project, a 2.5 billion yuan project jointly established by Baosteel, Shaoguan Steel and Zhanjiang Port Group and consisting a 50,000 dwt dock, a stock yard, a pellet production line and infrastructure facilities. The project is part of the Baosteel-dominated Zhanjiang Steel base that will produce 9.2 million tons of pig iron, 10 million tons of steel and 9.4 million tons of steel products from the end of 2011 with a total investment of 140 billion yuan.

Hebei Iron arms merger to challenge Baosteel(2009/6/29)

BEIJING, June 25 -- The Hebei provincial government has grabbed the initiative to reform its steel industry to compete with the big boys, particularly Shanghai-based Baoshan Iron and Steel, or Baosteel.
Hebei Iron & Steel Group, the holding company controlled by the provincial government, is believed to have asked its unlisted and listed subsidiaries to work out the details of a merger plan.
The proposed merger calls for the acquisition by the principal listed subsidiary, Tangshan Iron and Steel (Tangsteel), of the assets of the other listed subsidiaries, Handan Iron and Steel and Chengde Xinxin Vanadium and Titanium Co. When the transaction is complete, Tangsteel will be the sole remaining listed subsidiary of Hebei Iron.
In the second stage of the restructuring process, Hebei Iron said it would inject the quality assets of its unlisted subsidiaries, Wuyang Iron and Steel and Xuanhua Iron and Steel, into the remaining listed arm.
The proposed transaction, if it goes through, will catapult Tangsteel into the forefront of steel producers with an estimated annual output in excess of 30 million tons, challenging Baosteel for the top spot.
Market observers pointed out that the group's promise indicated its keenness on integrated listing, and an intention to further enhance the industrial status of the listed company and the investment value.
Public data showed that the remaining company after merger would produce 19.39 million tons of steel products with sales revenue of 113.262 billion yuan, ranking it as the second largest listed steel company in China by output and income.
If the quality assets of Wuyang Iron and Xuanhua Iron were to be successfully injected, it would add a further 7 million tons of steel products to the merged company, making it the biggest listed steelmaker at home.
Zhang Tieshan, an analyst with mysteel.com, said Tangsteel would be able to expand its advantage in resources, and broaden its market share, through the merger.
According to him, Handan Iron and Steel will focus its businesses on the eastern areas, such as Jiangsu, Zhejiang and Shandong provinces, while Tangsteel and Chengde Xinxin will target the northwestern and northeastern areas.
"This is not good news for Baosteel, because Handan Iron has started developing steel plates, which used to be the exclusive preserve of Baosteel," Zhang said.
Zheng Dong, an analyst with Guosen Securities, said mergers and restructuring among steel mills from the same region, such as Anshan Steel and Benxi Steel's merger, have become the industry norm. Such a combination will help steel mills in Hebei province to band together to secure the market and face fierce competition.
"But in the short term, it will take time to blend different corporate cultures into an integrated one. To exert the most strength from their merger, government support, market recognition and sophisticated management after the deal will prove pivotal," Zheng said. (Source: China Daily)

Zenith to expand capacity(2009/6/26)

Zenith, a non-government run steelmaker in Jiangsu, has decided to invest 12 billion yuan to build a new steelworks that will bring its output to 10 million tons by 2011. The first phase of the project is expected to be launched in January 2010, adding the mill’s capacity to seven million tons. The mill had 25.79 billion yuan in operation income in 2008. It ranked 23rd among China’s non-government run enterprises and 37th among steelmakers nationwide.

Wisco may buy stakes in MMX(2009/6/25)

Brazil’s iron ore producer MMX announced on June 22 that it has received a non-binding invitation from Wisco which was interested in buying 9.09 percent of shares in MMX and 23 percent of shares in its subsidiary, MMX Sudeste, for a total amount of $400 million. According to a MoU reached with MMX on May 19, Wisco was also planning to build a five million t/y steelworks in Rio de Janeiro with an investment of $4 billion. The Chinese mill has accelerated the exploration of overseas iron ore resources since early this year by tapping assets in Canada, Australia and Madagascar.

Sinosteel imports more iron ore this year(2009/6/24)

As an import agent for 38 clients, Sinosteel imported nearly 10 million tons of iron ore in the first five months of this year, up 300 percent year-on-year. The company, as one of China’s largest iron ore importers, holds shares in Australian iron ore resources totaling 11 million tons in addition to long-term contracts extensively reached with suppliers in Brazil, India and Australia. It dealt with nearly 30 million tons of iron ore in 2008.

More assets to be added to Hebei Steel’s new listed arm(2009/6/22)

Shareholders’ meetings of Tangshan Steel, Handan Steel and Chengde Vanadium and Titanium will be held in a week to discuss a plan that would see the three listed steelmakers integrated into one under the management of Hebei Iron and Steel Group. Meanwhile, the group has decided to inject premium assets in Wuyang Iron and Steel and Xuanhua Iron and Steel into the newborn listed arm - Hebei Iron and Steel Co Ltd – within one year after the consolidation of the three mills. When the deal done, Hebei Iron and Steel Co Ltd will become China’s largest listed steel producer.
Through Tangshan Steel Group, Hebei Iron and Steel Group holds 100 percent of equity in Xuanhua Steel that mainly produces wire rod, rebar, light section, narrow strip and welded pipe, with an annual output of 5.2 million tons in 2008. Through Handan Steel Group and Handan Iron and Steel Co Ltd, the group holds 53.12 percent and 8 percent of shares respectively in Wuyang Iron and Steel, a sole professional producer of wide plate in the country. It produced 2.48 million tons of steel products in 2008.

Hebei Iron and Steel to build JV slag powder lines(2009/6/22)

Hebei Iron and Steel Group and Singapore-registered Engro Co Ltd entered into an agreement to build, in two phases, four high-performance fine grinding slag powder production lines in China with a total output of 2.4 million tons per year for 320 million yuan. The project designed to be controlled by Handan Steel, a subsidiary of Hebei Iron and Steel, and jointly participated by Engro, will introduce advanced facilities and technologies as well as environmentally friendly construction materials that are adaptable to the international trend.

Logistic port to be launched in Kunming(2009/6/19)

 Chengdu Xilian Iron and Steel Logistic Group Co Ltd is spending 680 million yuan on building a steel logistic port at Kunming Economic Development Zone, Yunnan Province, which is due to be completed early next year. As one of the large steel distribution markets in the province, the project, known as New Tiegongji Iron and Steel Logistic Port, will be capable of accommodating 600 operation units and handling three million tons of steel per year.

Handan Steel wins large orders from railway projects(2009/6/17)

 Handan Steel has received orders for its rebar and wire rod worth more than 700 million yuan since it won tenders in the Beijing-Shanghai and Beijing-Shijiazhuang High-Speed Railway projects last year. A special coordinated team has been set up to ensure the quality of materials by strictly controlling their chemical elements, maintaining a rolling temperature of 1,050 to 1,100 degrees, controlling water cooling pressure, as well as bundling and packing.

Ansteel further cooperates with China CNR(2009/6/15)

 Ansteel signed a long-term strategic partnership agreement with China CNR, a leading manufacturer of railway transportation equipment in China. The two groups, both of which are under the management of the central government, are ready to cooperate in the fields of information exchanges, technology development and application, and business affairs. Ansteel became a supplier of weather-proofed plate for CNR in 2004 and the scope was extended to medium plate, cold rolled sheet and ordinary hot rolled sheet in 2006. For many years, the mill has rendered great support to the development of CNR.

Large oil tank steel developed by Shougang(2009/6/11)

 SG610E (12MnNiVR) high heat input welding steel plate jointly developed by the Shougang Technology Research Institute and Shouqin Company was praised by the China Standardization Committee on Boilers and Pressure Vessels (CSCBPV) for its better performance in key technologies than materials produced by any other producers at home and abroad, excellent mechanical and welding properties, and the good low temperature tenacity of welding joints. The material is designed to produce crude oil tanks used under tough circumstances in the country’s western and southwestern regions.

Wuhan Steel signs agreement for strategic investment(2009/6/11)

 Consolidated Thompson Iron Mines Limited (CLM) announced that it has signed a definitive subscription agreement with Wuhan Iron and Steel Corporation (Wuhan Steel) in respect of the previously announced strategic investment of $240 million by the mill into CLM. The Definitive Agreement provides for Wuhan Steel to subscribe for 38,681,023 common shares of the Company at a price of CAD 2.72 per share for an aggregate subscription price of CAD 105 million, which shares represent 20% of the issued and outstanding CLM shares post-transaction. CLM and Wuhan Steel will establish a limited partnership, of which the Chinese mill will hold a 25% interest, and to which CLM will contribute the Bloom Lake property. Wuhan Steel will contribute the balance of the previously announced $240 million to the limited partnership in exchange for its interest therein.

Xiangtan Steel earns a profit in May(2009/6/9)

 Valin Xiangtan Steel produced more than 500,000 tons each of pig iron and steel in May, attained a profit of 41 million yuan and broke a new record in energy consumption per ton of steel. Having received an increasing inquires from Singapore, Vietnam, South Korea and Japan, the mill realized a full operation at its wire, rod and sheet production lines beginning May 15. Demand from home market also became firmer. Orders from China State Shipping Corporation increased to 50,000 tons in April from just 30,000 tons in March.

Chinalco confirms deal breakup with Rio Tinto, expresses disappointment(2009/6/8)

 BEIJING, June 5 (Xinhua) -- Aluminum Corp. of China, or Chinalco, confirmed Friday that Australian mining firm Rio Tinto has scrapped the proposed 19.5 billion U.S. dollars of investment by Chinalco, and Rio Tinto would pay a break fee of 195 million U.S. dollars to the Chinese aluminum maker.
Chinalco Chairman Xiong Weiping said the company is "very disappointed" at the result, as it has been making constructive efforts in negotiation and has made appropriate revisions to the deal the two sides entered into on Feb. 12 this year.
Xiong said Chinalco maintained that the deal would be a good opportunity to create value for the shareholders of Rio Tinto and would pave the way for long-term strategic cooperation between the two companies.
Rio Tinto also announced Friday a cooperation with BHP Billiton Ltd. in which the latter paid Rio 5.8 billion U.S. dollars to set up a joint venture to run the iron ore resources of both companies in west Australia.
The cooperation was said to save 10-billion-U.S.-dollars for both companies.
The reason that drove the global miner to reject Chinalco's investment might be "something other than economic concern," Zhang Yansheng, director of the Institute of Foreign Trade of the National Development and Reform Commission, told Xinhua Friday, citing Chinalco's position as a Chinese state-owned company in the downstream part of the industry.
However, the break-up of the deal might not be that bad, said Lian Ping, chief economist of the Bank of Communications. It saved the Chinalco 19.5 billion U.S. dollars, a price that might be unreasonably high for a stake in Rio Tinto.
Share price of Chinalco at the Shanghai Stock Exchange gained 2.18 percent to 12.65 yuan (1.86 U.S. dollars) in morning session after the news.
The break-up of the deal gave Chinalco an opportunity to look for other alternatives, said Zhang, referring to iron ore mines in Central Asia countries, such as Mongolia.
"With demand and money in hand, why do we worry about lack of iron ore resources?" Zhang said.
Zhanglin, analyst with Beijing Lange Steel Information Research Center said domestic steel companies are actively participating in exploration and development of iron ore mines in Australia, Russia, Mongolia, Indonesia, and also many South American countries.
Despite the rejection, Xiong said Chinalco would not change its strategic target of becoming an international mining company with multi-metal products. Chinalco would continue to seek strategic investment opportunities and actively facilitate mutual development in the global mining industry.
In February, Chinalco signed an agreement to invest 19.5 billion U.S. dollars in Rio Tinto to secure resource supplies for China and help cut Rio's heavy debt. The deal would have been the largest single foreign investment by a Chinese company.

Shagang eyes assets in Wanda Sheet(2009/6/8)

Shagang Group, China’s largest non-governmental steelmaker, is considering a plan to buy assets in Zhangjiagang Wanda Sheet Co., Ltd, a move that will allow the former to extend its industry chain and produce more than 30 million tons of steel in 2010. Wanda Sheet, a subsidiary of Panhua Group that boasts of a well-established production structure consisting of pickling, cold rolled, galvanizing (annealing), and color coating, is also a non-governmental producer in Jiangsu with a galvanized sheet capacity of 500,000 tons and a cold rolled capacity of more than one million tons per year. Detailed information remained unknown as Shagang is carrying out a due diligence on the proposed acquisition. It produced 20.56 million tons of steel products in 2008,

Valin Steel expands with the help of foundation(2009/6/5)

Valin Iron and Steel Group has entered into an agreement with China Huarong Asset Management Corp to establish China's first joint steel industry investment fund. The fund will be used for steel industry investments, mergers and acquisitions. To begin with, the fund will have 1 billion yuan worth of assets under management which may be expanded to between 5 billion yuan and 10 billion yuan. In 2008, Valin Group produced 10.83 million tons of steel, had sales revenue of 70 billion yuan and a profit of 3.1 billion yuan. It remained a second-tier producer compared with Baosteel and Hebei Iron and Steel Group. Valin Group, which has automotive steel and electrical steel production joint ventures with ArcelorMittal, recently became the second largest shareholder in Australia's third largest iron ore miner Fortescue Metals Group Ltd.

Wisco to build seven ports across China(2009/6/3)

Wisco will set up a port service network consisting of seven ports across the country including Fangchenggang in Guangxi, Qingshan, ezhou, Yangluo in Hubei, Taicang in Jiangsu, Zhoushan and Ningbo in Zhejiang, despite some of which are still under construction or on the proposed stage. If completed, 50 million tons of steel outbound and raw materials inbound could be realized via these ports annually, saving 370 million yuan for the mill.

Haixin Steel restarts BF(2009/6/2)

Shanxi Haixin Iron and Steel Group restarted its No.6 blast furnace on May 29 after introducing a 7-strand 7-high billet continuous casting machine for an investment of 80 million yuan. The mill also tries to arrange production according to orders in a bid to sustain a steady cash-flow, slow the construction project of flat products, squeeze the output of steel that is stagnant in sales, and raise money through various sources.

Valin Liangang rolls out thick galvalume sheet(2009/6/1)

On May 21, Valin Liangang began to produce the third batch of galvalume sheet in 2.0mm thick, the thickest gauge of such material used in the market. As of May 25, through strengthened examination on annealing furnace and hydrogen content inside the furnace, the producer had rolled out 2,863.28 tons of first-grade galvalume sheet, up 7.7 percentage points than last month in terms of first-grade ratio.

Chinese mills unable to accept 33 percent markdown(2009/5/31)

Many Chinese mills have claimed they are unable to accept a 33 percent markdown in the iron ore price recently reached between Rio Tinto and Nippon Steel. A source said the decline of iron ore price is not enough to offset the decrease in selling price of steel products.
The CISA has not yet made comments on the new iron ore prices with their decreasing rates much lower than the expected level of 40 percent. The source said the Chinese side won’t give up its stance in the ongoing negotiations with international suppliers unless its goals are materialized. The new contract price would have little impacts on the spot market that is mainly driven by demand, added the source.

Wuyang Steel receives orders from wind power projects(2009/5/27)

Wuyang Steel has signed two deals to provide 16,000 tons of low alloy high-strength steel Q345D and Q345E this year for wind power projects following it sent low alloy high-strength steel S355NL to a wind power project in the North Sea of Britain last year. Earlier, tens of thousands of such steel produced by Wuyang Steel had been sold to wind power projects in Chifeng of Inner Mongolia, Qingdao of Shandong, Jiangsu and Zhejiang.

Wisco receives orders from local users(2009/5/22)

Ten consumers from Hubei Province including China Railway Wuhan Bridge Industries have agreed to purchase 930,000 tons of steel from Wisco at a Wisco brand’s promotion conference facing to provincial customers. So far, the mill has signed letter of intent to sell more than five million tons of steel this year to the auto, home appliances, shipbuilding, machinery, steel structure, bridges and construction sectors. Wisco will try to sell five million tons of steel across the province this year, accounting for more than 80 percent of the province total steel consumption. Apparent steel products consumption in Hubei is expected to be 18 million tons by 2010.

Kaiyuan Holdings to take a stake in Rizhao Steel(2009/5/21)

Hong Kong-listed Kaiyuan Holdings Limited has agreed to purchase 30 percent of shares each of Rizhao Sections Company and Rizhao Iron and Steel Company as well as 25 percent of shares of Rizhao Steel Rolling Company for a total investment of HK$5.2 billion. When the deal completed, Du Shuanghua, the owner of Shandong-based Rizhao Steel, will become the biggest shareholder of Kaiyuan Holdings. The deal, which has to be approved by the Hong Kong Exchanges and Clearing Limited, added resistance to Shandong Steel’s efforts in consolidating with Rizhao Steel this year. Rizhao Steel plans to build a 20 million t/y premium steel base in coastal area at the expense of axing half of existing capacity.

Wisco may build steel plant in Brazil(2009/5/21)

Wisco signed a memo with LLX and MMX, subsidiaries of Brazil’s investment group EBX on May 18. Wisco is planning to build a five million t/y steel plant in the Brazilian state of Rio de Janeiro and buy a stake in MMX. Brazil’s partners will provide the project with iron ore and port services.

Shougang’s Caofeidian project may launch next month(2009/5/19)

Boasted of advanced technology, Shougang’s Caofeidian project is scheduled to be launched in June end free from the restriction of a “production limits order” demanded recently by the Ministry of Industry and Information Technology, said Zhu Jimin, chairman of Shougang Group. The project will mainly produce high-grade hot and cold rolled steel for oil pipeline, shipbuilding, automobiles and home appliances uses, which, however, have witnessed the sharpest decline in both prices and exports.

First pilot coating line debut in Panzhihua Steel(2009/5/18)

Financially founded by the NDRC, Panzhihua Steel has built China’s first pilot hot-dip galvanized line integrating degreasing, coating, coloring coating and cladding and exclusively designed for subsequent surface treatment of cold rolled materials for high-end home appliances.
The home appliance sector has set new requirements on galvanized materials in the aspects of environmental protection and functionality in addition to higher demands on surface quality, regular mechanical and forming performances since it has become increasingly fashionable for the use of thin-gauge organic coating hot-dip galvanized sheet such as environment-friendly passivation, anti-fingerprint and self-lubricating sheet.

Ansteel wins tenders in key projects(2009/5/15)

Ansteel has won a series of tenders for steel in bridge projects including Liaohe Bridge connecting Yingkou with Panjin, Chongqi Road Bridge over the Yangtze River linking Jiangsu Province and Shanghai, and a bridge project in Yugoslavia. The mill received an order to supply Xiluodu hydropower station, China’s second largest and the world’s third largest hydropower project, with 110,000 tons of steel spiral casing in the wake of providing Nuozhadu hydropower station with nearly 5,000 tons of such steel. Ansteel also signed contracts to sell 22,000 tons of steel for Sinopec’s and PetroChina’s 13 100,000-cubic-meter oil tank bases in Shanshan County, Xinjiang, Dayawan, Guangdong and eastern Hebei.

Shagang ignites No.7 coke oven(2009/5/15)

Shagang put into operation of the No.7 7.63m coke oven on May 6 as part of its fourth phase coking project that features energy conservation, output expansion and enhanced level of equipment. Closed dust removal system which has been representing the sophisticated trend in recent years in the Europe’s coking industry, was introduced in the project to greatly reduce the pollution when coke is produced.

Shanxi Coke Group Q1 profits down 50 percent(2009/5/13)

Shanxi Coke Group attained a main business revenue of 1.08 billion yuan in the first quarter of 2009, down 27.13 percent year-on-year; and a profit of 27.95 million yuan, down 50.9 percent. Driven by the government’s economic stimulus plan, the group is expected to have an income revenue of 3.87 billion yuan and a profit of 71.22 million yuan in the second quarter and become profitable in the fourth quarter. Shanxi Coke Group manages 10 firms at prefecture-level and 259 coking plants at county-level in the province, and runs 12 subsidiaries. Its output accounts for a third of the country’s total coke output.

Hebei Steel launches new CR project(2009/5/12)

Hebei Iron and Steel Group, China’s second largest and the world’s fifth largest steel mill, started construction of a 2.17 billion yuan cold rolled project in Wuyi County, Hengshui City on May 7. The first phase, costing 593.7 million yuan, will produce 250,000 tons of cold rolled sheet and attain sales revenue of 1.387 billion yuan per year. This is one of the major strategies for the group to consolidate the local steel industry and will inevitably play an active role in boosting the economic growth of both the city and Hebei Steel Group, said Gao Hongzhi, mayor of Hengshui City.

Tisco incurs 710 million Q1 losses(2009/5/11)

Hit by the falling demand, Tisco made a loss of 710 million yuan in the first quarter, compared with a profit of as much as 930 million yuan in the same period of last year. It also posted a 39.63 percent drop in operating income. Tianjin Steel Pipe has emerged as the second largest shareholder of Tisco’s shareholding stainless pipe company, where construction of a 50,000 t/y stainless seamless pipe project is under way. The project is due to be completed in December 2009.

Masteel develops high-end auto steel(2009/5/8)

After four year’s research and development, Masteel has been able to produce high-end auto sheet for domestic ten large carmakers including Chery Automobile, JAC Motors, Donghua Automotive Industry, BYD, Foday, SAIC Motor, Foton, Shaanxi Automobile Group, Jiangsu Yueda and Chana. With the help of domestically advanced CSP production line, 2,130mm cold rolled and 2,250mm hot rolled machines that launched last year, the mill has produced DC04 deep drawing auto sheet for Chery’s front-wheel covers and luggage compartment lids; DC06 drawing auto sheet for JAC’s rear door inner panels; and auto panels for JAC, Nanjing Automobile and Donghua Automotive. Masteel received an order of 1,500 tons for auto panels in May.

Wisco takes over stakes in Australia’s WPG(2009/5/7)

Foreign media reported that Wisco has signed a framework agreement with Australia’s WPG to subscribe for approximately 12 million, or 15 percent, new WPG shares at a price of A$0.25 per share for a total amount of A$3 million and jointly develop WPG’s Hawks Nest deposits, with a potential reserve of one billion tons, in the central area of South Australia by investing another A$45 million. The deal is still subject to the approval of Australian authorities. A month earlier, Wisco had agreed to pay $240 million for 19.9 percent shares in Canadian Consolidated Thompson and take part in the operations of Bloom Lake. The mill also bought 50 percent shares in an iron ore project owned by Australia’s Centrex Metals Ltd for A$180 million last year and a 15 percent stake in Centrex Metals for A$9.7 million.

Ansteel launches No.2 BF in Bayuquan(2009/5/5)

Ansteel launched a 4,038-cubic-meter blast furnace on April 26, indicating the first phase of the Bayuquan project having formulated a capacity of 6.5 million tons. The No.2 BF is a matching project to the Bayuquan wide plate mill, which was undertaken by MCC Cisdi. The No.1 BF has been able to produce over 10,000 tons of pig iron per day since its operations in September 2008.

Tangshan Steel Q1 net profits down 90 percent (2009/5/4)

Tangshan Steel posted an operating income of 10.02 billion yuan in the first quarter of 2009, down 27.29 percent year-on-year; a net profit of 83.66 million yuan, down 88.54 percent; and earnings per share of 0.02 yuan, down 90 percent. Owing to fact that steel prices fell ahead of fuel and raw materials’, the mill expected a net profit of 100 million yuan in the first half, down 50 to 100 percent; and earnings per share of 0.03 yuan.

Valin Steel incurs 387 million yuan loss in Q1(2009/4/30)

Valin Steel had an operating income of 10.27 billion yuan in the first quarter of this year, down 8 percent year-on-year; earnings per share of minus 0.14 yuan; and suffered a loss of 387 million yuan, down 46.56 percent. The mill is expected to lose about 500 million yuan in the first half due to falling steel prices and weak demand.

Baosteel Q1 net profits down 97.7 percent(2009/4/30)

Baosteel had a net profit of 89 million yuan in the first quarter of this year, down 97.7 percent year-on-year; and earnings per share of 0.01 yuan. It produced 4.72 million tons of pig iorn, 5.13 million tons of steel, and had a combined gross profit of 140 million yuan, down 5.16 billion yuan from a year earlier and up 8.47 billion yuan from the previous quarter. Demand for steel is beginning to recover due to low inventories. But the hot rolled sheet and medium plate markets remain uncertain. The group is cautiously optimistic about the market in June and July. The prices of ordinary carbon hot rolled coil, hot rolled pickling coil, cold rolled coil and hot-dip galvanized coil are moving sideway for June shipment despite a 200 to 300 yuan per ton reduction for few products.

Shougang may take over Shanxi Haixin Steel(2009/4/29)

Shougang is in talks to take over Haixin Iron and Steel Group, the largest non-governmental mill in Shanxi Province. No details about the negotiations have been disclosed yet. It was understood that Shougang’s purpose to buy up assets in Haixin is to sustain its long products business elsewhere after the mill launches the flat product-dominated Caofeidian project in 2010 as part of its relocation program that will see the suspension of the Beijing operations.
Haixin Steel had been listing the No.1 non-governmental enterprise in Shanxi for three consecutive years from 2005 and was honored by the State Administration of Taxation as the biggest taxpayer among the non-governmental enterprises across the country by paying 203 million yuan in 2003. However, affected by the financial crisis that dried up demand and caused mounting inventories from the latter half of last year, the mill was forced to close four of its six furnaces (600-cubic-meter each) last November, which reduced the industrial increment value by 150 million yuan that month in Yuncheng city, where is home to Haixin Steel.
Besides, Shougang is also planning to buy stakes in Guiyang Special Steel and Changzhi Steel, with the rights to access to a coalmine in the latter, as a base to make long products in the future and tap potentials in the upstream coke industry.

Shandong Steel may complete merger this year(2009/4/27)

Shandong Iron and Steel Group will complete a substantial merger with non-governmental mill Rizhao Iron and Steel this year in order to build a new coastal project in Rizhao. Both companies signed an LOI on November 5, 2008.

Wisco inks deal with Sinopec(2009/4/27)

Wisco and Sinopec, one of the world’s top 500 enterprises, recently signed a strategic cooperation frame deal in Beijing. The two companies have agreed to strengthen cooperation on industrial gas supply, steel usage, shipment costs on iron ore, environmental protection, development planning for both companies, development strategy in central, southern and western regions, non-steel industries as well as application of hi-tech products.

Xinyu Steel may take over Hongdu Works(2009/4/23)

In the light of the national industry policies, Xinyu Steel, one of the largest mills in Jiangxi Province, is about to take over the province’s fourth largest mill Hongdu Works. Xinyu Steel aims to produce 10 million tons of steel after building a three-step expansion project, although it now belongs to the second tier in the industry, with an annual capacity of seven million tons. Hongdu Works is a small producer of special steel with a capacity of 650,000 tons.

Domestic steel market continues stagnation(2009/4/23)

Baosteel, China’s largest steelmaker, won’t expect a promising domestic steel market until next year, a stance that is widely seen as a warning to international iron ore suppliers, who have refused to accept mills’ proposals to cut this year’s iron ore contract prices by 40 to 50 percent with a belief that the central government’s four trillion yuan stimulus plan would spur household demand for steel. However, domestic experts see a different picture. The government investment plan is not adequate enough to make up for the absence of investment from private sectors and for shrinking demand from the overseas market. They further note it is possible for the industry to go through the worst times this year due to excessive overcapacity.

Handan Steel ignites new furnace(2009/4/23)

Hebei Iron and Steel Group Handan Steel launched the No.2 blast furnace on April 21, which indicated the mill can produce 4.5 million tons of premium sheet per year. It was understood the mill has developed more than 30 new varieties including bridge steel and pipeline steel over the past four months. In the first quarter, Handan Steel produced 357,400 tons of sheet and had sales revenue of 760 million yuan. A new 2,180mm cold rolled project, which is scheduled to come into stream in 2010, will produce over 600,000 tons of auto panel steel, high-strength steel, and anti-fingerprint electric galvanized substrate.

Yanshan Steel to invest in complex project(2009/4/22)

Yanshan Steel plans to spend two billion yuan on a complex project in Yejituo County that consists of two 1,080-cubic-meter blast furnaces, a 150-ton converter, a 300-square-meter sintering machine, a 25,000-cubic-meter oxygen making machine, a low-pressure steam generator, and a 110 kv transformer station. Once completed, the project will produce 3.1 million tons of sintering pellet, 2.6 million tons of pig iron, 2.6 million tons of steel, have a production value of seven billion yuan, a profit and tax of 700 million yuan, and create 4,000 jobs.

Wisco foresees 50 percent drop in H1 profits(2009/4/21)

Wisco warned a year-on-year decline of more than 50 percent in H1 business performance due to massive falling price reserves and the sharp drop of demand. The group had an operating income of 10.91 billion yuan in the first quarter of this year, down 30 percent year-on-year; an attributable net profit of 263 million yuan, one eighth of that last year; and an earning per share of just 0.03 yuan. In 2009 the group plans to produce 15.84 million tons of pig iron, 16.85 million tons of steel, 14.42 million tons of steel products, and attain a operating income of more than 59.6 billion yuan.

Shougang forecasts 50-odd percent drop in H1 profits(2009/4/20)

Shougang posted a net profit of 410 million yuan last year, down 35.62 percent; and an earning per share of 0.1384 yuan. The mill attributed the decreased profits to production cuts by four million tons at Beijing operations, the sharp decline in steel prices since the fourth quarter due to the global financial crisis, and rising costs of fuel and raw materials in the first three quarters. It also announced a net profit of 73.56 million yuan in the first quarter of 2009, down 62.91 percent year-on-year. Shougang also expects a net profit of roughly 100 million yuan in the first half of this year, more than 50 percent lower than 551 million yuan in the same period last year.

Valin Steel makes heavy losses in Q1(2009/4/17)

Valin Steel posted a 1st-quarter loss of 380 to 390 million yuan due to falling sales volume, the sharp decline of steel prices, and higher inventory costs of scrap and ferroalloy. Its debt rate approached 70 percent at the end of last year. According to official data, the steel industry experienced a net loss of 770 million yuan in the first two months of this year, compared with a profit of 25.5 billion yuan during the same period a year earlier.

Ansteel to buy shares in Longmei Group(2009/4/17)

Ansteel announced a plan to purchase 1.2703 percent of shares in Longmei Group from Heilongjiang Longmei Holdings Group for 219.86 million yuan, which Ansteel believed would lower costs, enhance overall ability to resist risks, strengthen its presence in the upstream coal sector, and safeguard main business production.

Ansteel 08 net profit down 60 percent(2009/4/16)

Ansteel posted a net profit of 2.99 billion yuan in 2008, down 60.32 percent from 7.53 billion yuan in 2007. Weak demand from downstream sectors, and falling steel and iron ore prices in the second half of 2008 were responsible for the decline in its net profits.
The mill also had overhead expenses of 3.79 billion yuan, up 7.95 percent, or 279 million yuan, including 68 million yuan as extra taxes and fees and 200 million yuan as computer maintenance costs, amortization of intangible assets as well as additional transportation fees, handling charges, and labor costs for an expanded sales network.

Bayi Steel makes 100 million yuan losses in Q1(2009/4/15)

Bayi Steel posted a 1st-quarter loss of 100 million yuan citing weak demand, falling steel prices, and relatively higher costs of scrap and alloy as the reasons. The mill registered a net profit of 118 million yuan and earnings per share of 0.20 yuan in the same period last year.

Tianjin plans 20 million t/y steel giant(2009/4/14)

The state-owned assets management body of Tianjin plans to merge its four state-owned steel mills into a group with an annual capacity of about 23 million tons, following steel sector consolidations in the provinces of Hebei and Shandong. The four companies are Tianjin Tiantie Metallurgical Group, Tianjin Steel Group, Tianjin Steel Pipe Group and Tianjin Metallurgical Group (Holdings). Tiantie Group is a producer of hot rolled, medium plate, rebar, wire rod and cold rolled with a capacity of nearly 10 million tons. Tianjin Steel Pipe produces about three million of seamless pipe, with a capacity similar to Tianjin Metallurgical Group. Tianjin Steel Group mainly makes medium plate and wire rod with an annual capacity of 6.5 million tons.
China has urged steel mills to consolidate so that to form several steel giants each with a capacity of more than 50 million tons and a dozen of large mills with a capacity of 10 to 30 million tons each.

Baosteel participates in railway project(2009/4/13)

Baosteel has decided to invest two billion yuan in the Shanghai-Hangzhou High-speed Passenger Railway for an 8 percent share. The Ministry of Railways will hold a 50 percent share in the project that costs 25.27 billion yuan in total. The proposed design speed is 350 km/h, which would allow the train to travel the 159 km total distance in just 37 minutes and carry 80 million passengers per year in a one-way traffic.

Shagang lays down 3-year development program(2009/4/10)

Shagang will try its utmost to squeeze into the world’s top 500 firms by producing over 30 million tons of steel products, having sales revenue of over 150 billion yuan, and a profit and tax of more than 20 billion yuan by 2010. To fulfill this goal, the group will push forward four key projects:
1. Optimize structuring, add value to products, extend industrial chain, and cooperate with downstream and upstream sectors;
2. Promote mergers and consolidation, enhance the industry’s degree of centralization, and optimize deployment of resources;
3. Invest three billion yuan in building economic recycling items to better recycle resources and protect environment;
4. Foster and train employees as a solid guarantee to realizing its new strategy.

Ansteel targets world’s top ten steelmakers(2009/4/9)

Ansteel aims to become one of the world’s top 500 enterprises by 2010 and one of the 10 largest steelmakers by 2015. In 2009 it will produce 16 million tons of pig iron, 15.9 million tons of steel, and 14.95 million tons of steel products. Four principles are mentioned to facilitate the mill’s boost this year, namely, expanding at a low cost, operating with high efficiency, sustainable development, and global perspective.

Tangshan Steel makes profits in Q1(2009/4/8)

Hebei Iron and Steel Group Tangshan Steel general manager Yu Yong said the mill produced 46,800 tons of steel in January, higher than 43,400 tons planned originally; added 15,000 tons of high-efficient materials to its long products structure; and gained tens millions yuan in profits. It had a profit of 100 million yuan in the first quarter, when other large mills across the country were suffering losses. The mill had various economic indexes optimized tremendously, with 14 ones taking the lead in the nation. It is expected to create up to two billion yuan from digging potentials and adding benefits this year.

Baosteel participates in Ningbo Steel’s management(2009/4/7)

Baosteel has assigned senior managers to Ningbo Steel after it took a controlling 56.15 percent of shares in the latter for 2.02 billion yuan on March 1. With 43.85 percent of shares, Hangzhou Steel was relegated to the second largest shareholder of Ningbo Steel. According to goals set by the new team, Ningbo Steel will produce six million tons of steel and achieve profitability this year.

Baosteel lowers prices again(2009/4/3)

Baosteel has decided to lower the price of ordinary hot rolled steel by 200 to 300 yuan per ton for May shipment, that of ordinary cold rolled steel by 200 yuan per ton, that of wire rod and tube by 500 yuan per ton, and that of galvanize and color coating steel by 200 to 450 yuan per ton. As of the end of February, the domestic steel price index stood at 103.69 points, down 3.71 percent, or 4 points, from January; and 23.29 percent, or 31.48 points, from a year earlier. Severe environments in export markets and large domestic steel capacity are believed to be the main reasons behind Baosteel’s price-cutting move.

Chongqing Steel’s net profit up 33 percent(2009/4/2)

Chongqing Steel had an operation income of 16.52 billion yuan in 2008, up 36.98 percent; a net profit of 598 million yuan, up 33.18 percent; earnings per share of 0.35 yuan; and a main business revenue of 16.48 billion yuan, including 15.94 billion yuan from the sales of steel and billet. The mill produced 1.37 million tons of coke, down 0.22 percent; 2.92 million tons of pig iron, down 0.87 percent; 3.36 million tons of steel, up 0.21 percent; and 3.21 million tons of billet, up 3.04 percent.

Wisco takes share in Consolidated Thompson(2009/4/1)

According to a deal, Wisco will invest $240 million in Canada’s Consolidated Thompson for 29.7 million common shares, accounting for 19.9 percent of the iron ore supplier’s total shares. The deal will allow China’s major steelmaker to secure 25 percent of iron ore produced from Bloom Lake mine, currently operated by a new subsidiary of Consolidated Thompson. The resource company’s CEO Quesnel said in a statement that it would increase its output to 16 million tons from eight million tons per year.

Baoshan Steel makes no losses in Q1(2009/4/1)

Baoshan Steel plans to attain sales revenue of 145.7 billion yuan and an operation cost of 129.8 billion yuan in 2009. Concerns were once raised about its performances this year as the company posted a year-on-year drop of 49.21 percent in 08 net profits. But the company is expected to make no losses in the first quarter of this year as it has strengthened costs control since the end of 2008 and always focuses on high-end products.
The company delayed or canceled iron ore procurement from September 2008 in order to reduce high value inventory. At present, its iron ore stocks stand at a normal 1-month level.

Baoshan Iron & Steel sees net profit down 47.9% in 2009(2009/3/31)

BEIJING, March 28 (Xinhua) - Baoshan Iron & Steel, the listed unit of China's biggest steel maker, reported net profit of 6.99 billion yuan (1.02 billion U.S. dollars) in 2008, down 47.9 percent year-on-year.
The steel maker, a Shanghai-listed subsidiary of Baosteel Group Corp, said in its annual report Saturday that the total profit plunged 55.1 percent last year to 8.67 billion yuan while revenues rose 4.9 percent to 200.85 billion yuan.
"China's steel firms will face challenges in the long run, including excessive production capacity, lacking of natural resources and high costs," the report said.
The company expected to post revenues of 145.7 billion yuan in 2009 and planned to produce 22.42 million tonnes of iron and 24.93million tonnes of steel in 2009.

Blocked Huiyuan deal won’t affect Chinalco’s bid for Rio(2009/3/25)

An official with Chinalco said the government's rejection of Coca-Cola’s bid to acquire China Huiyuan Juice Group won’t affect Chinalco’s bid for Rio. “It is not comparable since the US beverage giant made a bid to acquire 100 percent shares in the largest fruit juice maker in China, while Chinalco just wanted to take over a small amount of shares in Rio Tinto and build a strategic cooperation relationship with the latter.” The Australian government extended on March 16 the review period of the issue on Chinalco’s bid for Rio by 90 days, days before China’s announcement of the objection on Coca-Cola’s bid for Huiyuan.

Shandong Steel Group to merge Rizhao Steel soon(2009/3/24)

According to the rescue plan on the steel industry, Shandong Iron and Steel Group is expected to consolidate with Rizhao Iron and Steel in the first half of this year, while eliminating outdated capacity in Jinan Steel, Laiwu Steel and Qingdao Steel. The group has received 110 billion yuan of credit line as financial supports. Rizhao Steel is under intensive preparation to build a premium steel base in the province with a total capacity of 20 million tons.

Masteel and others to slash H section output (2009/3/23)

Masteel, Laiwu Steel and Jinxi Steel planned to cut output by at least 30 percent, or more than 100,000 tons, per month during April and June. The three major producers of H-section also decided to hold the price of large section at 3,500 yuan per ton as a floor price.

Largest coking group debuts in Shandong(2009/3/20)

Shandong Coking Enterprise Group officially opened on March 18. The group, consisting of 45 coke producers and three firms covering railways, finance and port services, will have a coke capacity of 30 million tons a year and attain sales revenue of up to 60 billion yuan. The move is aim to integrate resources, seek a joint development, cope with increasingly fierce competition and cushion the impact from the financial crisis, according to Wang Qingtao, president of the Coking Industry Association of Shandong and director of Shandong Coking Enterprise Group.

Tisco eyes assets in Meimian Steel(2009/3/20)

According to Taiyuan vice mayor Wang Jiansheng, Tisco Group is in talks to buy out or at least take a controlling stake in the assets of Meimian Iron and Steel, a non-governmental company affiliated to Shanxi Meimian Energy Group whose owner, Yao Junliang family, has decided to sell the 1.8 billion yuan worth steel assets due to continued stagnation in demand for coke and steel. It would be the first case of Tisco’s taking over a steel company within the province if the deal ends successfully. Founded in August 2006, Meimian Steel has a high-quality special steel capacity of two million tons per year.

Ansteel slashes April steel prices(2009/3/18)

Ansteel and Baotou Steel announced plans to slash steel prices for April shipment. Ansteel will lower the ex-work price of ordinary hot rolled by 550 yuan per ton over last month, ordinary cold rolled by 350 yuan per ton, carbon structural steel by 350 yuan per ton, low carbon pressing, high-quality carbon structural steel by 300 yuan per ton, galvanized sheet by 300 yuan per ton and color coating by 400 yuan per ton.
Baotou Steel will lower the price of hot rolled by 500 yuan per ton to 3,400 yuan per ton, cold rolled by 450 yuan per ton to 3,950 to 4,450 yuan per ton and medium plate by 420 yuan per ton to 3,680 yuan per ton.

Shagang first imports soft coal(2009/3/17)

Jiangsu Shagang recently imported 46,000 tons of soft coal for coking use valued at $6.67 million, in reaction to the changing situation at home and abroad and the necessity of interior structural adjustment. This was the first time for the group to import soft coal in three years and the group is scheduled to import more than 1.5 million tons of such coal this year.

Baosteel’s auto steel sales soar(2009/3/16)

Baosteel’s sales of six types of super high-strength steel for autos use such as 780 MPa cold rolled and hot dip galvanized sheet and ordinary cold rolled and galvanized duplex steel have increased by 10 times in three years. The use of such steel can reduce cars’ weight, enhance safety and credibility as well as save energy and protect environment. About 20 percent of new cars produced by foreign automakers have adopted such super high-strength steel.

Masteel inks logistics deal(2009/3/12)

Masteel and China Railway Materials Commercial Corp. signed a strategic cooperation agreement on March 10 to fend off the financial crisis. The two companies agreed to set up a high-ranking dialog mechanism, establish an investment strategic partnership, intensify the present achievements and deepen cooperation on building a new industry chain.

Jinan Steel sees big drop in net profit(2009/3/10)

Jinan Steel had an operation income of 43.18 billion yuan in 2008, up 21.38 percent year-on-year; a net profit of 781 million yuan, down 60.13 percent, earnings per share of 0.55 yuan, down 61.91 percent; and a net asset on return of 10.74 percent, 5.73 percentage points less than a year before. The mill attributed the drop in profits to falling demand from both home and abroad, an overcapacity in the steel market and decreasing steel prices as the global financial crisis unfolds.
Despite the difficulties, Jinan Steel will invest 4.68 billion yuan in six key projects under the 11th Five –Year Plan program, 11 technical reforms that were carried over from 2008 and 47 new projects this year.

Lengshuijiang Steel starts wire rod production(2009/3/9)

Lengshuijiang Steel has become a premium construction steel base with the most complete range of varieties in Hunan by launching a high-speed wire rod production line on February 23. The line can produce 5.5 to 14mm high-speed wire rod and 10 to 14mm rebar. The project, which started construction on February 12, 2008, has a capacity of 600,000 tons per year and costs 100 million yuan.

Baosteel to export up to 10 percent of output(2009/3/9)

Baosteel would export 8 to 10 percent of its total output this year, said Wang Jing, general manager of Baosteel International Trade Company and a CPPCC member. The figure includes capacity in both Baoshan Iron and Steel and Baosteel’s branches, but excludes that in Ningbo Iron and Steel. Baosteel announced early this month that it will take over 56.15 percent shares in Ningbo Steel for 2.02 billion yuan.

More bank loans for Baosteel’s takeover bid(2009/3/6)

China Construction Bank has agreed to provide a 3-year-term loan, valued 800 million yuan, for Baosteel to take over 56.15 percent shares in Ningbo Steel. The move came after the Bank of Communications had offered 750 million yuan in loans for the mill in the same takeover bid. The two loans combined will account for half of the 3.1 billion yuan funds required to accomplish the takeover deal. With a capacity of four million tons, Ningbo steel is a joint venture consisting of Hangzhou Steel, Tangshan Jianlong Industry, Nanjing Steel, Fujian Union Trust Investment and other foreign investors.

Masteel to focus on high-end steel in 2009(2009/3/6)

Masteel will focus on the production of high-end steel in 2009. Among the categories of hot rolled sheet are pipeline steel (aims to produce 1.5 million tons this year), shipbuilding steel, container steel, high-strength weather proof steel, beam steel and vessel steel. The cold rolled production will focus on DC04 grade or above soft steel for cars, phosphor content steel, home appliances steel and full series silicon steel; coating and galvanized production will focus on anti-finger steel, zinc ferroalloy steel, chrome-free passivation steel and high-strength structural steel (to produce 300,000 tons of color coating and auto steel); medium plate production will center on shipbuilding steel (to produce 500,000 tons) and vessel steel; and long products will concentrate on anti-quake rebar, high quality cold heading steel, Q420 electric tower steel, HQ450NQRl high-strength corrosion resistant steel for railway flat cars and H sections for electrified railway’s poles.

Shougang to stop Beijing operations by 2010(2009/3/5)

Shougang Group chairman Zhu Jimin said the group will completely stop production in the Beijing area by the end of next year and will build new boarding houses in Caofeidian for 5,000 employees working there. The group is also mulling a new railway connecting Shougang’s new factory with the boarding houses. It washed out four million tons of steel capacity at Beijing operations last year and properly resettled 8,247 employees involved.

Baosteel cuts April price on weak demand(2009/3/5)

Baosteel has decided to lower ex-work prices for April shipment after raising the prices for three consecutive months, citing the weak demand. The price of hot, cold rolled and galvanized products will be cut 200 yuan per ton from March. The price of 3mm hot rolled steel will be 3,532 yuan per ton, down from 3,742 yuan per ton in March; and that of 1mm cold rolled steel will be 4,026 yuan per ton.

Ansteel eyes 80 million tons capacity in further(2009/3/4)

Ansteel has mapped out a production goal in the further. The headquarters of Ansteel will produce 16 to 17 million tons of steel per year, Benxi Steel 15 million tons, Baiyuquan project 15 million tons, Chaoyang New Space five million tons, Tianjin Tiantie eight million tons, Pangang Group 15 million tons, Dongbei Special Steel five million tons, totaling 80 million tons, a scale similar to its rival Baosteel. However, the move of consolidation between Ansteel and Benxi Steel is slow. Until now, both companies are still running under separate managements and accounts.

Baosteel gets loans for takeover bid(2009/3/4)

Bank of Communications has agreed a 750 million yuan worth loan, 37 percent of the total transaction value of 2.02 billion yuan, to Baosteel for its takeover bid for 56.15 percent stake in Ningbo Iron and Steel Co., Ltd, the first bank loan provide for a mill involved in merger activity after the government’s announcement of the rescue plans on the ten industries. The bank refused to give details about loan period and interest rate.

Baosteel buys stakes in Ningbo Steel(2009/3/3)

Baosteel Group and Hangzhou Iron and Steel Group reached an agreement on March 1, upon which Baosteel will invest about 2.02 billion yuan in Ningbo Iron and Steel in exchange for 56.15 percent shares. This is the first takeover case after the country’s announcement of the rescue package on the steel industry. Ningbo Steel, which is located near Beilun port, will see its output increasing to 10 million tons per year from current four million tons.

Wisco signs strategic deals(2009/3/2)

Wisco signed a new strategic deal with China International Marine Containers Group Co., Ltd. on February 25 following clinching seven similar deals with Dongfeng Automobiles, Gezhouba Group, China Zhongtie Major Bridge Engineering Group and China South Locomotive and Rolling Stock Corporation Limited on February 17.

Masteel wins orders from automakers(2009/2/27)

Masteel signed nine contracts with automakers in Anhui on February 25 to supply more than 200,000 tons of steel products valued over one billion yuan. The mill is the largest industrial enterprise in the province and perhaps the first one whose sales revenue will top 100 billion yuan. The provincial government also urged local carmakers and parts firms to give more considerations to Masteel than any other firms outside the province when buying into materials under the same conditions.

Baoshan Steel delays BF restart on weak demand(2009/2/27)

Baoshan Iron and Steel Corp. decided to postpone the time to restart the repaired No.1 blast furnace for about three months amid a yet-to-be-recovered demand, affecting about one million tons of output. The company said demand from downstream sectors shows no signs of significant recovery due to the sharp decline of exports and the release of steel capacity from new and idled facilities. Q2 orders are better than the previous quarter though slumps from the same period last year.

Valin Steel buys into Australia’s FMG(2009/2/26)

Hunan Valin Iron and Steel Group agreed to purchase 16.48 percent of newly-issued shares in Australia’s third-largest mining group, FMG. The deal, which is still subject to approval from authorities of both China and Australia, will allow Valin, one of the ten largest steelmakers in China, to become the second largest shareholder of the mining group. FMG has an iron ore reserve of up to 20 billion tons.

Zhanjiang Steel listed as national project(2009/2/25)

Zhanjiang Iron and Steel Base, Guangdong has been listed as a national project. The Guangdong Province is a big steel consuming region in China with an annual steel consumption of up to 40 million tons, tenth of the country’s total consumption. But it is running short of steel supplies at 20 million tons per year. During the 11th Five-Year Plan, the province will eliminate 10 million tons of outdated steel capacity, laying a good foundation to embrace the new steel project in Zhanjiang.

Liuzhou Steel posts net profit drop in 2008(2009/2/23)

Liuzhou Steel had an operation income of 29.22 billion yuan in 2008, up 41.1 percent year-on-year; an operation profit of 22.33 million yuan, down 97.94 percent; a net profit of 15.52 million yuan, down 98.45 percent and earnings per share of 0.0061 yuan.

Baotou Steel benefits from energy-saving efforts(2009/2/20)

Baotou Steel is about to launch its 2.19 billion yuan gas and steam combined cycle unit (CCPP) consisting of two machines, which will allow the mill to save 800 million yuan in electricity fees and create a profit of up to 400 million yuan each year.

Jiuquan Steel outperforms in energy-saving goals(2009/2/20)

In 2008 Jiuquan Steel consumed 684 kg of standard coal to produce one ton of steel, down 17.8 kg from 2007 and saved 84,500 tons of standard coal, surpassing the original goal of 80,000 tons.

Quakeproof rebar developed by Sangang(2009/2/20)

Sangang was permitted to produce quakeproof rebar after it passed tests for its HRB400E and HRB500E materials. The mill has been able to produce quakeproof rebar in the form of wire rod and bar and signed letters of interest with some customers related to nuclear power stations and ports infrastructure.

All smaller BFs shut down in Tangshan Steel(2009/2/19)

Tangshan Steel spent 551 million yuan on 13 energy-saving projects last year, reducing the emission of SO2 to 17,729 tons required by the provincial government 12 months ahead of schedule. All blast furnaces below 450 cubic meters in the mill have been washed out.

Zhanjiang Steel’s first phase program unveiled(2009/2/18)

A total of 69.7 billion yuan investment will be spent on the first phase of Zhanjiang Steel project, which is in the middle of preparatory work, to produce 10 million tons of steel, create an industrial production value of 70 billion yuan and trigger a new investment of 100 billion yuan.

Minmetals to buy OZ Minerals(2009/2/18)

Metal trader China Minmetals Corp is planning to buy Australian mining firm OZ Minerals Ltd for A$2.6 billion ($1.7 billion) in cash to ensure adequate supplies of copper and zinc ore.
Minmetals is offering 82.5 cents for each share of OZ Minerals, a 50 percent premium over its last traded price on Nov 27, the Australian miner yesterday said in a statement. The offer has been recommended by the board of OZ Minerals, which is also the world's second-largest zinc miner.

Baoshan Steel seeks inter-bank notes financing(2009/2/17)

Baoshan Iron and Steel Co., Ltd. announced February 13 that the company plans to issue less than 10 billion yuan worth medium-term notes and no more than 10 billion yuan worth short-term notes to investors in the banking market at an interest rate no more than the preferential rates of loans provided by banks. The fundings will be used to replenish working capital and refund bank loans. The plan is still subject to a general meeting permit.

Fushun Special Steel’s 08 net profit up 46.48 percent(2009/2/16)

Fushun Special Steel announced February 12 that it produced 519,700 tons of steel in 2008, down 20 percent year-on-year; 426,100 tons of steel products, down 16 percent; had main business revenue of 5.10 billion yuan, up 9 percent; a profit of 43.42 million yuan, up 1.31 percent; a net profit of 34.76 million yuan, up 46.48 percent; and exported $106.02 million worth products, up 23 percent.

Shougang Jingtang ready to launch new blast furnace(2009/2/16)

Shougang Jingtang Iron and Steel Co., Ltd’s iron plant is ready to launch a 5,500-cubic-meter blast furnace as the first step of its first stage project inside the Caofeidian Industrial Zone. After completed, the company will produce 9.7 million tons of billet and 9.13 million tons of steel products per year.

Shougang to be top shareholder of Fushan Energy(2009/2/13)

Shougang Concord International, a subsidiary of Shougang Holding (Hong Kong) Limited, announced recently it will take up 12.05 percent equity in Hong Kong-registered Fushan Energy from Wang Liping, the biggest shareholder of the energy company, for HK$1.20 billion, including HK$715 million in cash and HK$484 million worth swap stocks issued to Wang. Together with 9.86 percent shares held in Fushan Energy by Shougang Holding, Shougang groups will become the largest shareholder in Fushan Energy by taking up a total of 21.91 percent equity, surpassing Wang Liping’s 19.13 percent. Fushan Energy is a producer and trader of coking coal and its by-products. Shougang Concord mainly engages in production and sale of steel products as well as shipping services.

Tangshan Steel enjoys favorite output in January(2009/2/10)

Tangshan Steel produced 1.25 million tons of pig iron, 1.20 million tons of steel and 1.05 million tons of steel products in the first month of this year. Furthermore, it produced 80,000 tons of OCTG casing steel, auto steel and welded wire steel and made shipment of 30,000 tons of cold rolled material.

Hebei Steel to seek public trading(2009/2/10)

The amount of stock financing by eight listed companies across Hebei Province in 2008 surpassed that collected by all listed local firms in 2007. Seven companies have so far submitted applications for public share trading in 2009. Among them, Hebei Iron and Steel and Jizhong Energy are planning an overall listing for their main businesses this year.

Ansteel’s shipbuilding steel passed overseas certificates(2009/2/10)

Angang Steel’s Bayuquan Iron and Steel Company has received certificates from ship’s classification societies in nine countries in Japan and Norway for its A and B grade high-strength shipbuilding plate, AH32 and AH36 high-strength shipbuilding billet, 5,500mm heavy plate and high-strength shipbuilding plate measuring 40mm thick or below, accounting for more than 85 percent of the company’s order varieties received from shipbuilders.

Baosteel to slash management expenditures(2009/2/6)

Baosteel Group general manager He Wenbo said the group has sent five inspecting teams composed of persons from the supervising and auditing departments to check accounts in some of its subordinated units. Any offence against disciplines should be recorded and redressed immediately, he added. The group has decided to slash its management expenditures by 30 percent this year.

Baoteel takes a share in railway project(2009/2/6)

Construction of the Shanghai-Hangzhou Express Railway is about to start soon. Four investors in the 20 billion yuan project include the Ministry of Railways, the Shanghai municipal government, the Zhejiang Provincial government and Baosteel Group. Baosteel will get involve in the project by investing two billion yuan. The project, which will cut travel time to 40 minutes between the two cities, is also considering a public trading program, a well-informed source said.

Baosteel signs mining deal in Xinjiang(2009/2/6)

Baosteel Group Bayi Steel and the Hetian government of the Xinjiang Uygur Autonomous Region signed an outlined deal to develop mineral resources in Buqiong iron ore mine, Pishan County. Bayi Steel has been expanding rapidly after being taken over by Baosteel. It will produce 10 million tons of steel a year by 2012 and require up to 20 million tons of iron ore.

Zongheng Steel’s 09 production plans unveiled (2009/2/5)

In 2008, Hebei Zhongheng Iron and Steel Group produced 1.75 million tons of pig iron, 1.77 million tons of billet, 1.73 million tons of strip, sold 1.74 million tons of strip and turned in a tax of 296 million yuan.
In 2009 the mill plans to produce 2.22 million tons of pig iron, 2.28 million tons of billet, 2.24 million tons of strip, 240 million kilowatts of electricity, and have a net profit of 700 million yuan, a coke ratio of less than 535 kg per ton of iron, a raw material consumption of 1,075 kg per ton of steel, a composite energy consumption of 640 kg of standard coal and a new water consumption of less than 2.7 tons per ton of steel.

Shandong Steel deploys 09 works(2009/2/4)

The Shandong Iron and Steel Group Co., Ltd held the 2009 working conference in January 16. In 2008, the group produced 21.34 million tons of pig iron, 21.84 million tons of crude steel, 21.68 million tons of steel products, 6.49 million tons of iron ore, 5.85 million tons of coke, and had sales revenue of 120.4 billion yuan, a profit and tax of 8.9 billion yuan and a profit of 2.7 billion yuan.
Works to be addressed in 2009 include:
1. Ensure steady operations
2. Boost technology advance, structural adjustment and competitiveness
3. Move forward on the construction of Rizhao premium steel base
4. Fulfill collective operations
5. Constitute scientific examination system to promote a healthy development
6. Deepen reforms and buildup the group’s vigor
7. Stick to the people-centered concept and build a harmonious corporation

Baosteel produces thickest structural steel(2009/2/4)

Baosteel beat five other domestic mills through a tender to supply a contractor in charge of the Shenzhen Jingji Financial Center Building with 19,500 tons of high-strength structural steel with a thick of 8 to 120mm. This is the first time the structural steel with a thick of up to 120mm has been used in the domestic high-rising buildings. The 98-story building, which is located at the heart of Luohu financial hub and costs five billion yuan, will replace existing Diwang Building as the city’s tallest landmark structure.

Handan Steel gets railway orders(2009/2/2)

Handan Steel has got nearly 100,000 tons of orders from public infrastructure-related investment projects. The mill will provide 70,373 tons of premium rod and 27,135 tons of high-quality high-speed wire rod for the Beijing-Shanghai High-speed Railway and 24,674 tons of premium rod for the Beijing-Shijiazhuang High-speed Railway.

Baosteel allies others to withstand financial woes(2009/2/1)

Baosteel signed a strategic cooperation deal on January 20 with China International Marine Corporation (CIMC) with aims to set up closer relationships and enhance competitiveness of both groups in the wake of tying up with Haier, Shanghai International Port (Group) Co., Ltd, China State Shipbuilding Corporation and Commercial Aircraft Corporation of China earlier. Baosteel and CIMC established relationships 20 years ago. Baosteel provided CIMC with container steel accounting for more than 50 percent of its output and cold rolled stainless accounting for over 40 percent last year. The supply ratio of cold rolled stainless this year will be as high as 50 percent. The new deal will allow the two companies to further cooperate on the research of technology and new products.

Anyang Steel sets 2009 production goals(2009/1/24)

Anyang Steel is planning to produce 6.15 million tons of pig iron, 6.2 million tons of steel, 5.9 million tons of steel products in 2009, have sales revenue of 25.4 billion yuan, complete a fixed asset investment of 2.39 billion yuan, and build five new projects with a total investment of 670 million yuan, including 100 million yuan for the No.9 coking plant, 200 million yuan for a 1.2 million t/y oxygen pellet plant, 300 million yuan for a 2,000-cubic-meter blast furnace and 50 million yuan for a 450-square-meter sintering plant.

Baosteel, CIMC sign deal on new products research(2009/1/23)

Baosteel and China International Marine Corporation (CIMC) signed a strategic cooperation deal on January 20 to set up closer relationships and enhance competitiveness of both sides. Both companies established relations 20 years ago. Baosteel provided CIMC with more than 50 percent of its output of container steel and over 40 percent of cold rolled stainless last year. The supply ratio of cold rolled stainless this year will be as high as 50 percent. The new deal will allow the two companies to further cooperate on the research of technology and new products.

Chongqing Steel plans nationwide exploring(2009/1/22)

Chongqing Steel will invest five billion yuan in five mines across the country and increase its self-supplied ratio to more than 50 percent by the end of 2010. The five mines are Taihe iron ore, vanadium and titanium magnetite in Xichang, Xiaojinhe magnetite in Shaanxi, Taohua iron ore mine in Wushan, Zhuantang iron ore mine in Qijiang and Jielong iron ore mine in Banan.

Anshan Steel’s net profit dived in 2008(2009/1/22)

Anshan Iron and Steel posted a net profit of 3.42 billion yuan in 2008, down 55 percent from 2007 and earnings per share of 0.47 yuan, down 58 percent. The sharp declined in profits was blamed on rising prices of fuel and raw materials, small amount of production from the Baiyuquan project and a 1.8 billion yuan provision for decline in value of inventory.
The price of iron ore and coke began dropping from June 2008 in the wake of a continuous price rise. With output expanding, the mill’s dependence on imported iron ore has risen to 20 percent from zero in the past, said Fu Jihui, board secretary of Anshan Iron and Steel.

Baotou steel reports record sales in 2008(2009/1/21)

In 2008 Baotou Steel produced 9.54 million tons pig iron, up 6.14 percent year-on-year; 9.84 million tons of steel, up 11.32 percent and 9.24 million tons of steel products, up 11.77 percent, had sales revenue of 43 billion yuan. The mill produced 100m-long 350 km/h rail that has been used in the Wuhan-Guangzhou Railway earlier this year.

Baoshan Steel raises prices for March(2009/1/21)

Baoshan Iron and Steel Co Ltd has raised its sale prices for hot rolled, cold rolled, galvanized steel and silicon steel for March by 300 yuan per ton, 300 yuan per ton, 350 yuan per ton and 350 yuan per ton respectively from February levels.
The domestic steel market continued to climb following a rebound in November last year with the price of hot rolled coil up by 1,000-odd yuan per ton and cold rolled coil by 600 to 700 yuan per ton. The medium plate market remained dull in the past two months as new orders from the shipbuilding sector slumped by 99.2 percent in December. Jinan Steel raised the price of hot rolled steel by 200 yuan per ton and Ninggang raised 250 yuan per ton last week.

Business performances of Wisco and Xigang in 2008(2009/1/20)

In 2008 Wisco produced 26.23 million tons of pig iron, 27.73 million tons of steel and 26.61 million tons of steel products, up 36.43 percent, 37.39 percent and 39.91 percent year-on-year respectively. It had sales revenue of 120 billion yuan and a profit of 7.6 billion yuan.
In 2009 the group plans to produce 31.24 million tons of pig iron, 33.01 million tons of steel, 31.01 million tons of steel products and have sales revenue of 126.9 billion yuan. Among its arms, Wuhan Steel will produce 15.84 million tons of pig iron, 16.85 million tons of steel and 14.42 million tons of steel products; Guangxi Iron and Steel Group Liuzhou Steel will produce 7.6 million tons of pig iron, 8 million tons of steel and 8 million tons of steel products; Kunming Steel will produce 5.4 million tons of pig iron, 5.4 million tons of steel and 5.5 million tons of steel products; Echeng Steel will produce 2.4 million tons of pig iron, 2.55 million tons of steel and 3.33 million tons of steel products.
Xigang produced 562,213 tons of electric steel, 582,377 tons of other steel products, had sales revenue of 4.76 billion yuan, a profit and tax of 193 million yuan and a profit of 39.15 million yuan.

Sinosteel signs deal with CAE(2009/1/19)

The Chinese Academy of Engineering (CAE) has agreed to assist Sinosteel in working on key technology research on mineral resources, carbon and refractory materials, new energy, environmental protection and modern steel production.

Ansteel receives 20 billion yuan in bank credit(2009/1/19)

Ansteel Group announced on January 9 that the Bank of China will offer Ansteel with 20 billion yuan credit along with financing, investment and insurance services.

Business performances of Beitai, Xiangtan in 2008(2009/1/16)

Beigang Group completed an industrial production value of 24.4 billion yuan, up 14.91 percent; an industrial added value of 8.16 billion yuan, up 20 percent; had sales revenue of 47.5 billion yuan, up 29 percent; a profit and depreciation of 1.4 billion yuan, up 27.27 percent; a tax of 1.49 billion yuan, up 39.16 percent; consumed 6.75 tons of standard coal of GDP per 10,000 yuan, down 4.7 percent; 6.6 tons of new water per ton of steel, down 5.72 percent and earned a foreign exchange of $1.56 billion, up 109.22 percent.
Xiangtan Steel produced 5.38 million tons of pig iron, 5.55 million tons of steel, up 1.3 percent; and 5.18 million tons of steel products, up 9.1 percent; had sales revenue of 35 billion yuan, up 45.8 percent; a profit and tax of 3.35 billion yuan, up 7.7 percent; and a profit of 1.7 billion yuan, up 6.3 percent.

Business performances of Linfen Steel, Xinxing Ductile Pipe Group in 2008(2009/1/15)

Linfen Steel had an operation revenue of 9.03 billion yuan, a profit and tax of 354 million yuan, a profit of 3.25 million yuan, produced 1.40 million tons of medium plate, 725,800 tons of branded products, 43,300 tons of stainless steel, 1.36 million tons of steel, 718,900 tons of branded steel and 1.15 million tons of pig iron.
Xinxing Ductile Pipe Group had an operation revenue of 36.91 billion yuan, up 50.56 percent and a profit of 1.6 billion yuan, up 10.87 percent.

Sinosteel,Valin Group,Baotou Steel Business performances in 2008(2009/1/14)

Sinosteel had an operation revenue of 171.9 billion yuan, up 39 percent. As of the end of 2008, the group had a gross asset of 105.7 billion yuan, up 44 percent and a net asset of 9.7 billion yuan, up 23 percent.
Valin Group produced 10.87 million tons of steel and had sales revenue of 66 billion yuan, up 30 percent.
Baotou Steel produced 9.54 million tons of pig iron, 9.84 million tons of steel, 9.24 million tons of merchant billet, and had sales revenue of 43 billion yuan. The mill turned in a tax payment of 3.3 billion yuan, up 21 percent and completed an industrial production value of 44.5 billion yuan, up 42 percent. It exported 1.01 million tons of steel products, earned a foreign exchange of $846 million, up $285 million year-on-year.

Tonghua Steel resumes operation(2009/1/14)

Tonghua Steel produced 10,000 tons of steel and 11,000 tons of pig iron per day after fully resuming operations on January 3. In the first eight months, the mill had an industrial output value of 25.36 billion yuan, up 104.2 percent year-on-year; an industrial added value of 4.2 billion yuan, up 52.6 percent; and sales revenue of 23.87 billion yuan, up 106.8 percent. In September, however, the mill lost 190 million yuan, hit by the financial crisis. The average selling price of construction steel dropped to 2,600-odd yuan per ton in mid-November. The mill has been trying to recover from the current difficulties by placing priorities on production adjustment, market chain and supply chain, the control of value chain, reducing costs and ensuring a stable personnel team.

Masteel earns $400 million last year(2009/1/13)

Masteel exported 450,000 tons of steel products and earned $400 million last year despite China’s export industry was seriously affected by the global financial crisis. It exported 280,000 tons of H sections to South Korea, Hong Kong, Singapore, Japan, the Philippines and Middle East, 15,980 tons of color coating sheet to Europe and Middle East and 118,000 tons of British standard G460 rebar to Singapore and Hong Kong. Masteel has formed a production structure of hot rolled coil, cold rolled coil, galvanized sheet, color coating sheet, medium plate, hot rolled H section, hot rolled medium section, cold head steel bar, rod and high-speed wheel.

Sinosteel’s operation revenue up 39%(2009/1/13)

In 2008 Sinosteel had operation revenue of 171.9 billion yuan, up 39 percent year-on-year. The group had a gross asset of 105.7 billion yuan, up 44 percent and a net asset of 9.7 billion yuan, up 23 percent as of the end of 2008. It is a supplier of raw materials and an agent of products of China’s major steel producers and the country’s largest service provider in the steel industry.

Accounting adjustment incurs more loss in Jinan Steel(2009/1/12)

An accounting estimates change is expected to give rise to a decline of 4.5 million yuan in net profit in Jinan Steel in 2008. The adjusted provision for bad debts, with an effective date on December 1, 2008, set a proportion at 5 percent for receivables less than one year, 10 percent for one to two years, 30 percent for two to three years, 80 percent for three to four years and 90 percent for more than five years. The mill raised the proportion of bad debts provision in the hope of improving its accounting system and avoiding operating risks.

Hebei Steel announces production goals in 09(2009/1/12)

In 2008 Hebei Iron and Steel Group produced 30.1 million tons of pig iron, up 10 percent year-on-year; 33 million tons of steel, up 6.2 percent; 30 million tons of steel products, up 4.9 percent; 5.1 million tons of iron ore concentrates, up 50.9 percent and 147,000 tons of vanadium slag, up 21.5 percent; had sales revenue of 165 billion yuan, up 32.2 percent; and a profit and tax of 11 billion yuan including five billion yuan in profits.
In 2009 the group plans to produce 38 million tons of pig iron, 41 million tons of steel, 39.1 million tons of steel products, 290,000 tons of vanadium slag and 6.25 million tons of iron ore concentrates; reduce the discharge of SO2 by 11,380 tons and COD by 291 tons.

Shagang secures hefty orders for 2009(2009/1/9)

Over 330 distributors and customers signed contracts with Jiangsu Shagang to buy 14.88 million tons of premium wire rod and high-end flat products in 2009, accounting for some 70 percent of the mill’s annual sales goal. In 2008, Shagang sold more than 20 million tons of steel products, had sales revenue of 140 billion yuan and earned a foreign exchange of $2.8 billion from its high-end materials.

Stainless mills may raise output(2009/1/9)

Some domestic mills were considering increasing stainless output from early January in view of a stable LME nickel price and the soaring bulk commodity prices such as crude oil. Tisco will continue to arrange production according to orders in January and Baosteel plans to raise output modestly.

Baosteel allies others to go through steel “winter”(2009/1/8)

Baosteel signed strategic agreements with China’s port giant Shanghai International Port Group (SIPG) and home appliance leader Haier Group on December 28 and 30 respectively in an effort to fend off the present financial crisis. According to statistics, the steel industry suffered a loss of 12.77 billion yuan in November with the number of money-losing mills reaching 48 percent. A source says Baoshan Iron and Steel may have a loss of about 1.5 billion yuan in the fourth quarter.
The cooperation with SIPG will focus on supply, logistics, storage, deep processing, distribution, services and investment.

Hebei Steel’s sales revenue hits 165 billion yuan in 2008(2009/1/8)

In 2008 Hebei Iron and Steel Group had combined sales revenue of 165 billion yuan, a profit and tax of 11 billion yuan and a profit of five billion yuan. It was named by the People’s Bank of China as one of the central government-controlled steelmakers specially backed by domestic financial institutes, along with Baosteel, Wisco and Pangang. The group has received a credit limit of 130 billion yuan from financial institutes including the Industrial and Commercial Bank of China, China Construction Bank and China Bank.

Shagang hits records for sales and profit(2009/1/7)

In 2008 Jiangsu Shagang Group again broke records for its sales revenue and profit and tax at more than 140 billion yuan and 15 billion yuan respectively, compared with 115.5 billion yuan and 14.5 billion yuan in 2007. The group produced more than 23 million tons of steel in 2008.

Tiantie attains 50 billion yuan in sales revenue in 2008(2009/1/7)

In 2008 Tiantie Metallurgical Group produced 4.4 million tons of steel, 4.25 million tons of pig iron, 3.48 million tons of steel products, had sales revenue of 50 billion yuan and a profit of 630 million yuan.
The group plans to produce 5.5 million tons each of steel, pig iron and steel products in 2009, have sales revenue of 50 billion yuan and a profit of 630 million yuan. Among others, it also plans to develop at least 50 new products, reduce energy consumption of production value per 10,000 yuan to 850kg of standard coal or less, that of unit added value by 6 percent, dust emission by 160 tons, SO2 emission by 500 tons, and limit COD emission to 350 to 400 tons.

Tisco’s operating revenue tops 101 billion yuan(2009/1/6)

Tisco is expected to produce 7.73 million tons of pig iron and 9.13 million tons of steel including 1.8 million tons of stainless steel in 2008 and have an operating revenue of 101 billion yuan and a profit and tax of four billion yuan.
In 2009, the group will try to ensure a steady operation, harmonious development and gradual progress in key projects; enhance executive ability, comprehensive competitiveness and living standard of its staff.

Wisco’s sales revenue tops 120 billion yuan(2009/1/6)

Wisco had sales revenue of 120 billion yuan and a profit of 7.6 billion yuan in 2008. It produced 25.93 million tons of pig iron, up 20 percent year-on-year; 27.16 million tons of steel, up 21 percent and 26.3 million tons of steel products, up 17 percent. The group exported 1.35 million tons of steel products and earned a foreign exchange of $1.2 billion in 2008.

Shagang to produce 23 million tons of steel in 2009(2009/1/5)

Shagang has set up production goals in 2009 to produce 23 million tons of steel and have sales revenue of 120 billion yuan and a profit and tax of 8.8 billion yuan.
From January to November of 2008, the group produced 21.37 million tons of steel, up 2.57 percent; had sales revenue of 133.6 billion yuan, up 29.7 percent and a profit and tax of 14.5 billion yuan, up 13.8 percent. The mill’s sales revenue and profit and tax for the whole year 2008 were expected to surpass 140 billion yuan and 15 billion yuan respectively.

Wisco to profit 7.6 billion yuan in 2008(2009/1/5)

Wisco general manager Deng Qilin said on October 30 that the group is expected to produce 25.93 million tons of pig iron in 2008, up 20 percent year-on-year; 27.16 million tons of steel, up 21 percent and 26.3 million tons of steel products, up 17 percent; create sales revenue of 120 billion yuan and a profit of 7.6 percent. The group will export 1.35 million tons of steel products and earn a foreign exchange of $1.2 billion. Its double-high (high-tech content and high value added) products’ ratio has been kept above 81 percent. Wisco also saved 2.8 billion yuan in costs and expenditures.

Wisco’s 350km rail passed test(2009/1/4)

350kmlOOm cut-to-length 60kg／m U71Mn(k) and U75V rails produced by Wisco passed technical test by the Ministry of Railways, paving a way for Wisco to mass produce such materials.
The rails were made through processes of secondary refining, vacuum degassing and bloom casting with facilities and technologies reaching the advanced international levels, realizing refining, finish rolling, finishing and cut-to-length of rail production.

Wisco signs cooperation deal(2008/12/31)

Wisco and Gezhouba Group signed a strategic cooperation agreement on December 26 to intensify cooperation between the two central government-controlled groups, reduce logistics and engineering costs and enhance collective competitiveness among central government-controlled enterprises. Both groups will use or recommend for using services and products offered by each other, intensify cooperation in the fields of logistics, procurement and technology research and extend the scale of cooperation.

Baosteel moves to steel structure field(2008/12/31)

Baosteel has realized a combination between “steel supply” and “steel structure processing” by developing a series of weather proof and fire resistant steels that meet the requirements of China’s construction industry. The physical quality of its high-grade color coating, high-strength color coating and hot-dip Al-Zn substrate has reached advanced levels of similar foreign materials. Baosteel’s products have widely been used in Beijing Bird’s Nest Olympic venues, Shanghai World Financial Center, the new CCTV building and 2010 Shanghai World Expo venues.

High-speed rail commercially produced in Baotou Steel(2008/12/30)

Baotou steel succeeded in commercially produced the first batch of 100m-long 350km per hour rail that will be used in the Wuhan-Guangzhou section, part of the Beijing-Guangzhou railway line, after the mill signed a high-speed U71Mn rail order with the Ministry of Railways on October 31.The success will not only allow the mill to meet the requirement of updates on rail products, but also help the mill cushion the current financial woes.

Panzhihua Steel’s overall listing plan cleared(2008/12/30)

Panzhihua Steel’s overall listing plan was officially approved by the China Securities Regulatory Commission. Panzhihua New Steel and Vanadium will issue 184,419,566 shares, 186,884,886 shares, 334,675,348 shares and 44,020,200 shares to Panzhihua Iron and Steel (Group) Company, Panzhihua Iron and Steel Co., Ltd, Panzhihua Steel Group Chengdu Iron and Steel Co., Ltd and Panzhihua Iron and Steel Gropu Sichuan Changcheng Special Steel Co., Ltd in exchange for relevant assets in the above companies. Panzhihua New Steel and Vandium will also issue additional shares of 333,229,328 and 618,537,439 to absorb assets in Chongqing Titanium Industry and Pangang Group Sichuan Changcheng Special Steel respectively.

Outlook keeps dull despite mills’ price lifts(2008/12/29)

China’s top mill Baosteel has decided to raise the price of cold rolled coil by 300 yuan per ton, or 8 percent, and hot rolled coil by 100 to 200 yuan per ton, or 6 percent, for February shipment. The move came after Shougang and Shagang took the similar measures earlier. The solid price was the result of decreased supplies in November, a steady trend of iron ore prices and restored confidence boosted by the government stimulus plans.
Analysts say, however, downstream sectors remain sluggish with gas engine and auto output falling 45.5 percent and 15.9 percent in November year-on-year respectively. The domestic steel prices will sustain a weak trend amid a sagging demand.

Magang set targets for 2009(2008/12/26)

Recently, Magang set up targets for 2009, “focusing on improving the product quality and strengthening the inner management”. Meanwhile, the company made production plans for 2009: 3.07 million tons of finished ores, 13.78 million tons of iron, 15.00 million tons of steel and 14.18 million tons of finished steel. Besides, Magang plans to have a production of new products of 1.60 million tons, and get 95% of the steel products into production; while lift the self-supply rate of electricity to 65% or above, and decrease the consumption of iron and steel materials per ton steel to 1,116 kg.
In 2009, Magang intends to carry out strategies showed as followings. First, improve the product quality and the competition ability while strengthen the development of new products, especially those high value added products like high strength special-purposed steel, auto sheet and home appliance sheet and so on with a high demand. Magang will try to secure the smooth production of newly developed products. Second, Magang means to dig the potential and lift the efficiency and reduce the costs. Third, Magang will improve the performance and profitability of non-steel businesses, to reduce the group risks. Fourth, Magang will strengthen the inner management. Fifth, company will construct a humanism culture in the group, to unit the employees together and deal with the current difficulties.

Xinyu Iron and Steel’s 3.0 million tons sheet project phase one broke ground(2008/12/25)

On 18th Dec, Xiyu Iron and Steel Company Ltd held a ceremony for phase one of the 3.00 million tons sheet project breaking ground. Phase one of the project, meaning 1,550 cold rolling project will have a capacity of 1.20 million tons per year, including a 1.26 million tons per year pickling and rolling joint line, a 700,000 tons per year continuous annealing machine, two rewind reel machines, one 1.0 million tons half automatic packing unit, and grinding and shearing mills, and acid regeneration station, 35/10kV transformer substation, lighting water supply and drainage systems and other supplementary facilities, while making preparations for a 300,000 tons per year galvanizing line.

China's largest steelmaker celebrates success(2008/12/24)

SHANGHAI, Dec. 22 (Xinhua) -- Baosteel, China's biggest steel producer celebrated its 30th anniversary Monday, giving credit to innovation for its success.
Xu Lejiang, chairman of the Shanghai-based steelmaker, said his business broke through the stereotypes of Chinese steel industries when it was established, as it now has the technological ability to change products from "China-made" to "China-created." Some steelmakers imitate and manufacture products. Boasteel creates new products.
Baosteel was listed among the Fortune 500 in 2003, and has reached a production ability of 30 million tonnes per year in 2007-- ranking the fifth among steel producers in the world.
"Baosteel represents a typical road for China's state-owned enterprises to reform and develop, to enhance creative ability by studying and innovating new technologies," said Li Rongrong, director of the State-owned Assets Supervision and Administration Commission of the State Council.

Magang realized sale income of more than 70 billion Yuan(2008/12/24)

Though facing a quickly weakening market in the later half, Magang managed to maintain a good performance. The company is estimated to have a production of steel more than 15 million tons, and 14 million tons of steel products, while realize a sale income of 73.0 billion Yuan.
As the prices for iron and steel products continuously drops in large content, Magang focuses on lifting up the product quality as the measure to change the mode of development, while adjust the production and marketing according to the market. In 2008, Magang carried out 32 development and technology projects, and produced 1.40 million plus tons of new products, including H-section steel, which gained “passport” to EU market, DC06 deep-drawing sheet that entered auto and home appliance manufacturing industries, and X80 line pipe steel which has been applied in West-east Gas Transmission Project, and made Magang one of the few producers of this product.
Though the finance crisis has a bad effect on the iron and steel industry in China, Magang intends to make progresses on steel production and new products development and other major economic indexes in 2009, through quality improvement and strengthening inner management, while reducing the costs.

Anyang Iron and Steel Group had a large order of deformed steel bars from Beijing-Shanghai Express Railway Project(2008/12/23)

Since receiving the first order in May 2008, Anyang Iron and Steel Group now has supplied nearly 40,000 tons of deformed steel bars of various specifications to Beijing-Shanghai Express Railway, Beijing-Guangzhou Passenger Special Line and other key projects in China. In the first half of Dec, Anyang Iron and Steel received another order of 25,700 tons of deformed bars from Beijing-Shanghai Express Railway Project, and the products involve seven specifications.
Due to the high and strict standards for quality control, Anyang Iron and Steel overcame difficulties and managed to carry out the deformed bar order from Beijing-Shanghai Express Railway Project in time, contributing to the key projects in China while expanding the market share in China.

Ansteel to build multinational steel group(2008/12/23)

Ansteel has gradually formed a structure of three production bases in recent years. It built China’s first self-developed 1,700mm ASP (medium thin slab continuous casting and rolling strip production line) and attained second prize for the Advancement of National Science and Technology, mastered two core technologies on the manufacture and production control of cold rolled whole set facility by establishing a 1,780mm cold rolled production line, self-integrated a modern premium steel production base with a capacity of five million tons per year and realized a significant shift from “products output” to “technology output” by transferring a 1,700mm hot rolled production line to Jinan Steel.
Ansteel’s products have also been used in many key national projects such as the Wuhan Yangtze River Bridge, the Three Gorges Hydro Project, the West to East Gas Transportation Line, the Qinghai-Tibet Railway, Shenzhou manned aircraft and Olympics venues.

Wisco buys stakes in Centrex(2008/12/22)

Wisco has agreed to inject A$180 million ($127 million) into Australia’s Centrex for 50 percent shares. The mill will also buy an additional 15 percent share in Centrex for A$9.7 million, Centrex said in a statement. Both companies are planning to build a deep water port in Eyre Penisula, south of Australia.

Baosteel upgrade the strategic cooperation relationship with Dongfeng-Nissan(2008/12/19)

Usually, Japan affiliated automakers hold the design and development of new types of autos, auto sheet shearing and processing themselves. Until recently, Baosteel formed with Dongfeng-Nissan an economic unit, and strengthened the strategic cooperation relationship between the two sides. In this connection, Baosteel will enter this field.
In recent years, the iron and steel companies in China continuously improve the product quality and technology services, attracting attentions from Japan affiliated automakers. As a strategic consumer of Baosteel’s auto sheet, Dongfeng-Nissan has had a long term cooperation with Baosteel, with auto sheet from Baosteel taking a ratio of more than 50% of the whole. Meanwhile, the two companies developed a mode to strengthen the cooperation through exchanging information and together development and research of products.
The upgrade of strategic cooperation between Baosteel and Dongfeng-Nissan means a real synergic development between iron and steel industry and auto manufacturing industry. Both companies will together deal with the economy crisis and maintain sustainable development through all fields cooperation, including design and development of new products, production, construction of supply chain, periodic management of contact process, balancing the production and sale, technology communication, market information, information system and culture construction. Both companies will establish a mechanism for mutual visits and exchanging of information, and extend the product mix from carbon steel sheet to stainless steel and special steel and so on, and expand the cooperation into logistic and processing of steel coils and so on.
According to experts, this will bring a brand new mode of cooperation between iron and steel companies and automakers, leading and setting an example for the cooperation between the two industries.

Ansteel’s shipbuilding steel accepted by foreign ship classification societies(2008/12/18)

Ansteel passed certificates from nine foreign ship classification societies including Japan and Norway for its AH32, AH36 shipbuilding steel billet, 5,500m plate and shipbuilding steel measuring less than 40mm in thick, which covers more than 85 percent of varieties booked from shipbuilders. The mill has begun to receive orders from customers.

Benxi Steel’s auto steel accepted by GM(2008/12/18)

Benxi steel laid a good foundation to establish a long-term relationship with US General Motors, the world’s largest car maker whose assembly lines spreading in 32 countries and regions with products selling to more than 190 countries, since the mills has passed punching tests for its galvanized auto steel and cold rolled steel by Shanghai Jiaoyun Co., Ltd, a major parts supplier of Shanghai GM.
In the meanwhile, test on the mill’s newly developed DC06 EDDQ sheet is underway at a technical center in North America. The result is expected to be released in mid-December.

Baosteel began commercial production of nickel based alloy steel(2008/12/17)

Recently, Baosteel’s special steel subsidiary succeeded in volume and continuous melting of nickel based alloy steel for the first time in China, and the main composition indexes of the first batch of 450 tons of nickel based alloy steel all meet the related technical and quality standards. The success will boost the volume production of nickel based alloy steel pipe in Baosteel, and help the company to secure a share in this high grade product market.

Wugang signed the first one million tons steel order for 2009(2008/12/17)

On the annual conference for 2008 of Wuhan Bridge and Steel Structure Association held on 12th Dec, the association signed strategic cooperation agreement with Wuhan Iron and Steel (Group) Company, promising to take one million tons of steel products from Wugang in 2009. The one million tons of steel products include hot rolled coiled plate, medium heavy plate and construction steel etc. for bridges and building structures. According to an industry source, the agreement marks an alliance formed between the two leading companies in iron and steel industry and bridge and steel structure building company in China.

Jiugang made 2009 production plan(2008/12/16)

Jiugang plans to produce 6.33 million tons of iron, 7.22 million tons of steel and 7.00 million tons of finished steel in 2009, and will arrange the production accordingly basing on the following nine principles.
-take full use of the self-produced fines and reclaimed materials to optimize the feed structure and reduce the raw material costs;
-take a reasonable control of the capacity, and strengthen the management of purchase, production, logistic and sale to keep balance;
-keep the main technical indexes advancing smoothly at a rate of more than 50%;
-boost the carbon steel cold rolling, ferro-alloy and Yugang screw welded pipe and other new projects to realize profit, production and sale soon;
-reduce the costs for production by more than 30% from 2008, and for non production by more than 40%;
-focusing on profits, increase the production ratio of products with high profitability, and lift the profit of strategic products and products for exports by more than 100 Yuan per ton compared that of common carbon steel;
-reduce production costs by utilizing the materials of lower costs, such as pellet iron (fines), reclaimed dusts, OG mud, dreg iron and steel, home-raising scrap steel and so on;
-control the spending on investment, annual repair and technology improving and so on, and release the pressure on cash from bulk raw materials, fuels and other material purchasing;
-strengthen the management of equipments repair and production, reduce the equipment failure and maintenance period, and secure the iron melting, coking and sintering facilities running at full scale.

The largest high carbon ferro-chrome project in Qinghai launched production(2008/12/16)

On 11th Dec, the largest high carbon ferro-chrome project, located in Datong Hui and Tu Autonomous County, Qinghai Province, Yihui Metallurgy Group (Qinghai) Company Ltd, launched production, realizing the target of construction and launching production at the same year.
Due to the influence of global finance crisis, many companies encounter financial problems, except Yihui Metallurgy Group (Qinghai) Company Ltd. As one of the eight subsidiaries of the famous ferro-alloy company in China, Sichuan Yihui Metallurgy Group, Qinghai Yihui Metallurgy Group intends to invest 400 million Yuan (200 million on construction and 200 million as current cash) to construct six high carbon ferro-chrome ores heating furnaces. The project will be developed in three phases, and the total capacity of high carbon ferro-chrome products is 180,000 tons per year, with an estimated net profit of 70 million Yuan per year. The investment is to be recurred in 6 years, and the yield rate is 34.1%.
Till now, the phase one, with an investment of 48 million Yuan, has been completed in nine months. Phase one constructed two 16,500 KV ores heating furnaces, and transformers for the furnaces, dusts and gas cleaning equipments, recycling water pool and other supplementary facilities.

Yueda Mining cooperates with Kunming Steel(2008/12/15)

Yueda Mining concluded a strategic cooperation deal with Wisco’s affiliated Kunming Iron and Steel to provide at least 150,000 tons of ordinary iron ore concentrates per year from its Tengchong operations with a renewed contract period until December, 2018. The amount and price will be separately settled according to market movement.

Shougang Jingtang commissions HR strip line(2008/12/15)

Shougang Jingtang Company succeeded in commissioning its 2nd 2,250mm hot rolled strip line on December 10. Covering 340,830 sq m, the line has a hot rolled coil capacity of 5.5 million tons per year and a finished steel capacity of 5.48 million tons. Its main products include carbon structural steel, premium carbon structural steel, boiler and pressure vessel steel, shipbuilding steel, bridge steel, pipeline steel, weather resisting steel, IF steel, DP, MP, TRIP and high-strength ultra fine grained steel.

No BF closed in Ansteel(2008/12/12)

Hit by the current financial crisis, Ansteel Group began to make loss from October as both export prices and capacity of steel dropped since the third quarter of this year. As a result, the group cut output at its No.2 blast furnace to 7,000 t/d from 8,000 t/d and further reduced half of overheads in October. Despite of the tough times, the group didn’t close a single blast furnace except the No.10 furnace that is under scheduled maintenance. This is because as a super large central government-controlled enterprise, any production stoppage may cause social problems and do harm to the group’s long-term development.

Jinan Steel signs strategic cooperation deal with shipbuilders(2008/12/11)

Nearly 20 executives and officials from shipbuilders and related economic departments in Shandong gathered at an industrial meeting sponsored by the Office of Scientific and Technological Industry of National Defense in Shandong Province to discuss the situation of the shipbuilding industry across the province. Representatives with shipbuilders expressed intentions to deepen cooperation with Jinan Steel to fend off the current financial crisis.
The province’s shipbuilding industry is encouraged to purchase steel from local steel producers such as Jinan Steel, establish steel deep processing centers in cooperation with the steel industry, improve efficiency and reduce costs. The local government will offer supports in these collaboration in terms of capital, credit and policy.

Wugang’s auto sheet is successfully applied in manufacturing Audi C class cars(2008/12/11)

Recently, an exciting news came from FAW-Volkswagen that the high strength low alloy hot dipped galvanized auto sheet developed by research institute and other departments concerned of Wuhan Iron and Steel Group passed the tests by the users.
The success in this auto sheet means an important advance for Wugang in auto sheet market, as this type of sheet will be applied in manufacturing of Audi C Class cars, and can meet performances requirements of Audi cars of A, B and C Classes and other types of cars. Now the first 20 tons of auto sheets have been impact-formed in FAW-Volkswagen, and the ratio of qualified materials reached 100%. This patch of materials will be made into auto parts that will be applied in the automobile body of Audi C Class.
Wugang and FAW-Volkswagen have reached an agreement that the automaker will increase the consumption of Wugang’s galvanized sheets.
Besides, the research institute of Wugang now is focusing the development auto outer sheet, to meet the performance requirement from FAW-Mazda and other high grade automobiles. Now the sample materials are under tests in Japan.

Bayi Steel seeks long-term relations with Mongolian mine(2008/12/10)

Bayi Steel vice general manager met with a delegation led by vice president of Mongolia’s Alertai Iron Ore Mine on December 2 about possible cooperation on iron ore supply. The mine, as one of the few rich mines in Asia, has a detected reserve of more than 300 million tons with an average Fe content of 45 to 50 percent and an annual capacity of two million tons. It lies just 168 km from Hami area, Xinjiang, making it easier to access.

Baosteel Zhanjiang project at crucial sanction period(2008/12/10)

The Zhanjiang Steel project is currently at a finial sanction period following an earlier preparatory work, Baosteel Group chairman Xu Lejiang told to an expertise committee of 20 leaders with the steel industry led by Xu Kuangdi, director of the Chinese Academy of Engineering.
The project will play a very important role in the structural adjustment and optimization in the steel industry of Guangdong Province. The province has carried out policies such as different electricity fees and financial subsidies as well as eliminated 7.83 million tons of outdated capacity. By 2010, the province’s demand for steel could reach 50 million tons per year.

Baosteel purchases stakes in Xinyu Iron and Steel with an amount of 200 million Yuan(2008/12/9)

While continues the M&A in north China, including the acquisition of Xinjiang Bayi Iron and Steel, and the integration with Baotou Iron and Steel, Baosteel has begun to seek new targets in Middle-western China. According to Xinyu Iron and Steel, with an amount of 200 million RMB, Baosteel purchased non-public offered shares of Xinyu Iron and Steel, becoming a shareholder of the company.
As an important ferroalloy production base, Xinyu Iron and Steel has 25 facilities, 14 wholly owned subsidiaries, 5 real economy entities, and 15 holding or stake holding companies. In 2006, the company produced 5.09 million tons of steel. The company is the largest iron and steel company in Jiangxi Province.
According to the source inside Xinyu Iron and Steel, as Xinyu Iron and steel is a state owned company, the government of Jiangxi Province intended to regroup the company with Baosteel, for further development and expansion, but the detailed plan is not announced yet.
　

Ansteel commissions 2nd jv hot-dip galvanized line(2008/12/9)

ANSC-TKS Galvanizing Co., Ltd, a joint venture between Ansteel and German’s Thyssen Krupp and established in February 2002, test commissioned its 2nd hot-dip galvanized production line on December 4. The new line has a capacity of 400,000 tons per year and will allow the company to double its output to 800,000 tons per year. The first line launched on December 4, 2003, also catering to the high-end auto and home appliance sectors.

Baosteel drafts plans to fend off steel winter(2008/12/8)

Baosteel Group chairman Xu Lejiang said in an interview that orders from the auto and home appliances industries have begun shrinking and those from the mechanical engineering, oil and shipbuilding sectors are keeping relatively good, but how long it may last remains unknown. Baosteel slashed stainless steel output by 50 percent in November and has conducted maintenance and repairing work at its iron plant and special steel branch in the past few months.
The medium plate plant has increased output of thin-gauge shipbuilding plate, a higher-value added material than thick-gauge one.
The plant has signed long-term contracts with Samsung Heavy Industries and Hyundai Heavy Industries of South Korea for 2009 shipment and intended to tie the knot with customers in Japan.

Tisco strikes slag recycling deal(2008/12/5)

Tisco signed a letter of intent with a US group to recycle stainless slag on November 19, the first agreement of this kind in China. Both companies will build a pilot plant in Taiyuan to produce cement additives and fertilizers for farming and golf lawn with stainless steel slag.

Hebei Iron and Steel signed a rail supply contract of million tons with Ministry of Railway(2008/12/4)

In the background of the central government carrying out economy stimulating policies, and new railway projects being implemented one after another, with the help of provincial development and reform committee in Hebei, Hebei Iron and Steel Group signed a rail supply agreement with Ministry of Railway. According to the agreement, Hebei Iron and Steel will supply 1.00 million tons of steel products for railway construction, which will be utilized in the construction of railway foundation, bridges and tunnels.
Since Oct 2008, 10 new railway projects have broken ground till now, which revives the steel demand. According to Yang Zhongmin, director of development plan department of MOR, the railway projects will need 20 million tons of steel in 2009.

Benxi Steel invests in structural adjustment(2008/12/3)

Benxi Steel will invest 31.44 billion yuan in the structural adjustment projects including 2.3 billion yuan in environmental protection. The mill plans to build a 10 million t/y integrated steel plant combining sintering, pelleting, coking, iron making, steel making, steel rolling and power generation while eliminating all the facilities at Xihu plant. After completion, the company will reduce the discharge of SO2 from 39,429.36 tons per year to 9,694.5 tons per year, that of dust from 22,655.4 tons per year to 9,772.7 tons, that of COD from 556.37 tons per year to 146.2 tons.

Tianjin Pipe realized profit 2.388 billion Yuan during the first ten months(2008/12/3)

Delegates of Tianjin Municipal People's Congress from Dongli District visited Tianjin Seri Machinery Equipment Corporation Limited on 27th November, and had a talk with the executives of Tianjin Pipe Company, parent company of Seri Machinery.
In the past years, Tianjin Pipe has held up the policy of increasing profits and lifting competing ability through technologies improvement and maintained a growth of 30% per year for nine years.
From Jan to Oct, Tianjin Pipe realized production value 32.7 billion Yuan, increasing by 44% from a year ago, and gross profit 2.388 billion Yuan, up by 6.5%. Now the company has the most advanced steel research center among the companies of this industry, and delivers more than 100,000 tons of new products to the market each year. Meanwhile, Tianjin Pipe has developed a product mix of ten thousand specifications of 26 grades steel, from tens of specifications. Tianjin Pipe now takes a share of 50% in domestic oil casing pipes, with one fourth exported to 90 plus countries and areas. Tianjin Pipe is expected to have a seamless pipe production of 2.70 million tons in 2008, and the capacity may be raised to 3.50 million tons in 2009.
Till now, Tianjin Pipe has registered Seri Machinery Equipment Cooperation, Tianjin Pipe Sanyuan Industry Company Ltd and feed company and other subsidiaries in Dongli District, contributing to the expansion and structure adjustment of Tianjin Pipe and the development of local economy. Till the end of Sep, the subsidiaries in Dongli have a ratal of nearly 200 million Yuan.
And both sides had a discussion on the expansion of Tianjin Pipe and how to deal with the global finance crisis, and they agreed to strengthen the cooperation and seek for win-win and development.

Ansteel provides national project with pipeline steel(2008/12/2)

Ansteel has provided with 124,400 tons of 18.4mm-thick and 1,550mm-wide X80 pipeline for a trunk line on the western section of China’s West-East Gas Transportation II Project, and more than 20,000 tons of 17.5mm-thick and 1,550mm-wide X70 pipeline for a branch also on the western section of the project.

Valin Group signed strategic cooperation frame agreement with FMG(2008/12/2)

On 24th Nov, a group leading by Mr. Andrew, CEO of Australian FMG met with the top officials from Valin Group, and both sides signed cooperation frame agreement. Executives from both companies had a business talk. And they had a discussion on the trend of world finance crisis, and the influence on iron and steel companies and ore resource supply, and the measures taken against the crisis by Chinese government and companies. Both companies agreed to establish strategic cooperation relation on low grade iron ore development and raw ores processing and so on, and signed cooperation frame agreement.
FMG of Australia is the third iron ore supplier in Australia and the forth in the world, and an important supplier of iron ore to iron and steel companies in China. Nowadays, the finance crisis caused by sub-loan in USA has spread to major western economies, and most advanced countries are facing a weakening or to weak economy. In this connection, the demand and prices for iron and steel products fall sharply and quickly, causing difficulties in sale of iron ores and forcing supplies to cut production. As the iron and steel companies in China are the most important consumers of Australian iron ores, FMG came to China for cooperation to together deal with the crisis.

Economy stimulating policy brings recovery to construction materials market(2008/12/1)

With the economy stimulating and domestic demand enlarging policies being carried out, Magang sees a recovery in production and operation. Till 23rd Nov, the accumulated output of high speed wire rod and rod in 2nd Rolling Plant of Magang reached 43,780 tons and 33,212 tons respectively, increasing by 1,297 tons and 1,212 tons from the initial plan.
2nd Rolling Plant is the main construction material production base of Magang, and the wire and rod products from the plant are essential materials for construction projects. After central government made the 4 trillion Yuan investment plan, the demand for construction steel in domestic market began to increase.
　

Shagang Group held a ceremony for steel plate hot rolling project breaking ground(2008/11/28)

Yesterday, Shagang Group held a ceremony for the steel plate hot rolling project breaking ground. The project is an important part of Shagang’s program of building the company a high grade plate production base, and also an important step for Shagang to take advantage of the existing wide plate capacity, upgrade the product quality, improve product mix and meet the demand fro high grade products from market and consumers. The project has an investment of 2.2 billion Yuan or so, and will construct four wide plate hot rolling production lines, with a capacity of 700,000 tons per year, and the main products of the project include carbon and low alloy structure plate, and ship plate and so on.

Ansteel named Forbes’ top 50 listed firms in Asia-Pacific area(2008/11/27)

Ansteel emerged in a list of top 50 publicly traded firms in the Asia-Pacific region unveiled by Forbes because of its great development potentials, the only Chinese listed steel producer in the list this year. The selection is based on the analysis of candidates’ long-term profitability, growth rate of sales and revenue, their performances in stock markets and anticipated revenues. Each candidate should have a market value, or sales revenue, of more than $5 billion. Steelmakers in the list also included Tata Steel of India beside Ansteel.

Hebei Iron and Steel signed strategic cooperation agreement with SMS(2008/11/27)

On 24th Nov, Hebei Iron and Steel Group signed strategic cooperation agreement with SMS of German. Till now, Hebei Iron and Steel has strategic cooperation with nine famous equipment-manufacturers in the world, and formed a optimized equipments and spare parts importing channel with a lower cost.
SMS is one the top metallurgic equipment manufacturers in the world. according to the agreement, both sides will further strengthen the cooperation on technology and equipment importing and supplying, while SMS will improve the products, technologies and services supplied to Hebei Iron and Steel. Besides, both sides will expand the cooperation to product process and so on.
To take the advantage of integration, Hebei Iron and Steel Group changed the former purchase system, and optimized the purchase channel by directly forming win-win cooperation strategic cooperation relationship with the manufacturers or suppliers.

Australia’s Iron Clad and Wisco to cooperate on iron ore projects(2008/11/26)

Iron Clad Mining Ltd and Wisco are planning to set up a 50:50 joint venture to develop iron roe resources in South Australia, Australia’s media reported.
The Chinese fifth largest mill is carrying out due diligence investigation and bankable feasibility study on Wilcherry Hill and Hercules projects, which are designed to produce four million tons of iron ore per year from 2011.

Valin Hengsteel is expected to have profits of 400 million Yuan and sale income of more than 10.0 billion Yuan in 2008(2008/11/26)

Hengyang Valin Steel Tube Co, Ltd. (Valin Hengsteel), is expected to realize profits 400 million Yuan and sale income more than 10.0 billion Yuan in 2008, the first company in Hengyang City with a sale income of more than 10.0 billion Yuan.
In September, hit by finance crisis sourced from USA, the world economy weakened sharply. Entering the later half, the iron and steel industry in China which maintained high-speed growth was affected by the crisis, presenting by cut in production, and weak demand and sharp decline in steel prices. However, Hengsteel managed to realized a better result than the estimated through structure adjustment and technology improvement. From Jan to Sep, the company produced 772,500 tons of steel pipes and tubes, increasing by 4.8% from a year ago; 831,200 tons of steel, up by 2.9%, while realized sale income 6.1 billion Yuan.
During the first nine months, the company produced 544,000 tons of specialized pipes, and the output of three strategic pipes were 337,000 tons of pipes for oil and gas, 69,000 tons of high pressure boiler pipes and 76,000 tons of pipes for machinery manufacturing. In three years, the company has developed into one of the top three pipe producers in China.

Baosteel again cut prices for some products of December shipment(2008/11/25)

According to a notice from Baosteel Company Ltd to the customers, based on the announced list price for December, Baosteel decided to cut prices for hot rolled and pickled, common cold rolled, hot dipped galvanized, electrolytic galvanized and so on for December shipments, and the decline averaged 1,000 Yuan per ton or so.
This was the second cut in steel prices for December shipment, following that in Oct. According to the notice, hot rolled and pickled, prices for hot dipped galvanized and electrolytic galvanized (including fingerprint resisting products) steel products will be cut by 1000 Yuan per ton, and common cold rolled steel products by 970 Yuan per ton and alumminium and zinc plating products by 1,200 Yuan per ton.
Besides, based on the announced list prices for Oct and Nov, CQ and DQ grade hot rolled and pickled, prices for hot dipped galvanized and electrolytic galvanized (including fingerprint resisting products) steel products have a discount of 1,000 Yuan per ton, and all alumminium and zinc plating products will have a discount of 1,000 Yuan per ton.
Baosteel and other Chinese steel producers are facing the toughest market in recent years. According to the statistics by China Iron and Steel Association (CISA), the steel prices in domestic market kept rising during the first half, but turned down in Q3, and the decline in integration price index for steel products by the end of Sep came to 10.86% compared that at the end of June. Entering Oct, the decline speeded up. And the prices for steel products lowered by 30% to 40% at the end of Oct compared with those at the end of June. At present, the steel market in China is still in adjustment at a low level. Meanwhile, production cost of steel melting pig iron during the first three quarters increased by 63.55%.
Industry experts said, the global finance crisis has a direct influence on the export orders of steel products. Most companies reported that the export order for Q4 decreased by 50%, which will cause the export volume in Q4 of 2008 and Q1 of next year.
Demand is vital to the recovery of iron and steel industry. From the domestic demand, housing and automobile industry are the main downstream consumers. Experts expect the market may grow stable in Q2 of 2009, and the price may rebound then, and the market may be improved during the later half.

Big railway orders go to four mills(2008/11/25)

Four domestic rail producers, Pangang, Baotou Steel, Pangang Steel and Vanadium and Wisco, got excited with the country’s 3.5 trillion yuan investment on the railway construction projects in the next three years, including 600 billion yuan in 2009, up nearly 70 percent from this year.
Of the total investment, construction of bridges, roadbeds, rails and the purchase of locomotives and trains will account for 875 billion yuan to 1,225 billion yuan, 350 billion yuan to 525 billion yuan, 245 billion yuan to 350 billion yuan and 350 billion yuan respectively.
Wisco has an annual rail output of 250,000 tons and is about to carry out tests on 350km/h rails. The production of high-speed rail will jump to 1.05 million tons next year.
Pangang’s presence in the domestic rail market stands at about 40 percent. It produced a monthly record 107,000 tons of heavy rail in October. Baotou Steel has regarded heavy rail and large section as its main sources of profit growth and aimed to produce one million tons per year.

Shandong Freda Group signed a 1.0 billion Yuan contract(2008/11/25)

On 18th Nov, Shandong Freda Group Company Limited and Sui County signed contract for the 1.0 billion Yuan stainless steel industrial zone project.
Shandong Freda will fund the project alone, and the registered company (Henan Guohua Stainless Steel Company Ltd or Henan Shuangfeng Stainless Steel Company Ltd, dependent on the name pre- approval by Henan provincial Administration Bureau for Industry and Commerce) will be responsible for the project, with the businesses including production and sale of stainless steel and special steel, construction materials, and logistic, export and import trade and so on. The project has an investment of 1.0 billion Yuan in total, and will be carried out in three phases. Phase one will have an investment of 400 million Yuan, and include the buildings and construction of seamless pipe, hot piercing, rolling and markets for steel and construction materials, with a time limit to 12th Jan 2009. Phase two will include welded pipe, seamless pipe expansion and other projects. With an investment of 200 million Yuan, phase two is expected to be completed in 2010. Phase three will construct steel melting and rolling facilities. The project covers an area of 345 Mu, with a hot piercing capacity 20,000 tons per year, welded pipe capacity 7,000 tons per year, seamless pipe capacity 20,000 tons per year, steel melting capacity 200,000 tons per year, and hot rolling capacity 30,000 tons per year.

Shaanxi Longmen Iron and Steel’s 1,280 cube meters blast furnace succeeded in drying up(2008/11/25)

Shaanxi Longmen Iron and Steel’s No 2 blast furnace, which was contracted with The 2nd China Metallurgical Construction Corporation, succeeded in drying up on 12th Nov.

China’s 2nd large wire rod line launched in Baotou Steel(2008/11/21)

Baotou Steel launched China’s 2nd large wire rod production line on November 14 with key facilities and processes introducing from Italy. The 100 million yuan project can produce 800,000 tons of 12mm to 52mm round bar, rebar, square steel and angle steel per year.

Wugang Enshi Iron Ore Project broke ground(2008/11/21)

On 18th November, Wuhan Iron and Steel Group’s Enshi Iron Ore Project broke ground. A beneficiation plant with a capacity of 500,000 tons per year and an ore fines plant of 500,000 tons per year will be firstly constructed.
The proven iron ore reserves in Enshi autonomous state totals 1.29 billion tons, and prospective reserve is more than 4.0 billion tons. This is the largest iron ore resource in Hubei Province and one of the mines of nine main types in China.

Shagang had a profit of 200 Yuan in Oct(2008/11/20)

Facing the tough steel market, Shagang Group positively took measures, and managed to maintain the growth with a balanced production and sale. From Jan to Oct, Shagang Company of Shagang Group realized profits 7.31 billion Yuan, increasing by 42.78% from a year ago, including 200 million Yuan in Oct.
In recent years, Shagang Group improved the collocation of resources and the management system. The acquired and merged subsidiaries also had a stable development. During the first nine months, Shagang Group realized profits 14.2 billion Yuan, almost equating to the whole of 2007. The group is expected to have a sale income of more than 130 billion Yuan in 2009, and profits may exceeds 15.0 billion Yuan.
Since July, the reason for Shagang to maintain balanced production and sale was that the company has formed a production system with long term and short term production plans, and high and new and various products structure. Nowadays, Shagang has four strategic product categories, leading by ultra wide plate, hot rolled plate coil, high speed wire, large coil wire and ribbed rebar, which have a lower production cost but high competing ability in the market.
Early in July and Aug when the market began to weak, Shagang made a decision to secure the market share and profits by stopping the production of unprofitable products, focusing on profitable products, making reasonable production plans, and boosting energy-saving and emission-decreasing projects, and decreasing costs, to secure the year profit target.

Baosteel, China Shipping invest in Yantai port(2008/11/20)

Following jointly setting up a dry bulk shipping company, Baosteel Group and China Shipping have decided to take part in the shareholding reform of Yantai Port Group.
According to a plan, Yantai Port Group will set up Yantai Port Co., Ltd. and inject current operating assets into the new company. Boasteel and China Shipping will also take a stake in the new company through an all-cash deal.
Yantai port’s cargo throughput topped 100 million tons in 2007, and will reach 105 million tons by 2010 and 215 million tons by 2020.

China develops non-pickling steel(2008/11/19)

From 2006 to October of this year, China had produced more than 1.8 million tons of reduced pickling steel for cod rolled material and over 350,000 tons for structural steel, which created economic benefit of 43.2 million yuan and 4.2 million yuan respectively. It also had produced more than 140,000 tons of non pickling steel for truck beam, which obtained economic benefit of over 16.8 million yuan. As a result, China is able to produce these materials on commercial basis.

Wisco invests in Guangxi Fangchenggang project(2008/11/18)

Wisco and Liuzhou Iron and Steel Group are busy with their Guangxi Fangchenggang steel project despite a sluggish home steel market. Both companies set up Guangxi Iron and Steel Group Co., Ltd. on September 3, 2008, which will oversee the project.
According to the plan, the first phase of the 3-step project will have a capacity of 10 million tons a year. After fully completed, the project will have a total output of 30 million tons, sales revenue of 207.5 billion yuan and a tax and profit of 44.8 billion yuan a year, with a total investment of 204.9 billion yuan, including 68.6 billion yuan in the first phase.

Tangshan Steel scraps last small billet machine(2008/11/18)

Tangshan Steel blasted off the No.2 continuous casting machine on October 27, ending the history of producing small billet in the mill. Meanwhile, it will add a 1700 slab continuous casting machine to its existing system that includes three converters, four refining furnaces and three slab production lines.

New electric steel project settled in Dongtai(2008/11/17)

A groundbreaking ceremony for Shanghai Silicon Steel – Jiangsu Shangxi Electric Steel project was held at the Economic Development Zone of Dongtai City on November 8.
The one billion yuan project, which is scheduled to start operation in May 2009, plans to produce 300,000 tons of electric steel products a year, attain sales revenue of two billion yuan and a profit and tax of 250 million yuan.

New steel projects encounter falling demand(2008/11/17)

China’s new steel projects have found it difficult to stay optimistic amid the slowdown of demand. Ansteel Bayuquan project, which was officially launched in early September of this year, is likely to produce only 500,000 tons of steel by year-end, down from originally planned 1.2 million tons. Shougang Jingtang project, which was ignited in October and scheduled to produce 4.85 million tons of crude steel by year-end, is expected to produce very moderate amount. Handan New Space project is operating normally since it has to make up production loss from a headquarters’ blast furnace that was halted for maintenance.
The central government’s four trillion yuan stimulus package will have a substantial impact on demand for steel and the steel industry’s performance. But the current falling demand is having an immediate impact on the operations of these new steel projects.

Tangshan Steel blasts off BF(2008/11/14)

Tangshan Steel blasted off a 450m3 blast furnace and assistant facilities such as air heating, sintering, raw materials, water cycling and dust removal at the southern part of its iron plant on October 30, marking the end of the dismantling project. The site will be cleaned and covered with green belts.

Wisco eyes minerals in Madagascar(2008/11/13)

Wisco singed mineral resources development agreement with Madagascar government during its recent visit to Madagascar and Mozambique in Africa. Feasibility study has been conducted by a joint venture between Wisco and HK-listed Jinxing International, in which Jinxing International will hold a 40 percent interest with its prospecting and exploiting rights in Bekisopa of Madagascar, the world’s fourth largest island and Wisco will hold 60 percent with its technique and payment in cash.

Ansteel plans to taken a majority stake of Gindalbie(2008/11/12)

Ansteel has taken a majority stake in Australia’s iron ore supplier Gindalbie Metals for A$162 million. Gindalbie Metals said the issue price represented a premium of 105% to the closing price of A$0.415 per Gindalbie shares on October 31. The offer, which is subject to regulatory approvals, will result in Ansteel increasing its stake to 36.28%.
Under a Share Subscription Agreement signed with Ansteel last year, Gindalbie has issued 65 million shares at A$0.6 per share to Ansteel’s Hong Kong investment vehicle, Angang Group Hong Kong Co., Limited, to raise A$39 million. Following completion of the share placement, Ansteel has become Gindalbie’s second largest shareholder with a 12.94% interest.
Ansteel and Gindalbie also signed an A$534 million agreement to jointly develop Karara iron ore project, which is scheduled to launch in 2010. For its part, Ansteel has paid A$50 million in advance.

Shandong Iron and Steel signs letter of intent for reintegration with Rizhao Iron and Steel(2008/11/11)

On 5th November 2008, Shandong Iron and Steel Group Company Ltd and Rizhao Iron and Steel Holding Group Company Ltd held a ceremony for signing Letter of Intent for reintegration in Rizhao City.

Baosteel non-oriented silicon steel breaks record sales(2008/11/10)

Baosteel’s production and sales of chrome free coating non-oriented silicon steel stood at 3,400 tons in September, bringing the total number during the first nine months to more than 12,000 tons, equal to that in the whole year 2007. The green-field product has extended its application to the fields like compressor, wind power and locomotives.
Baosteel started researching on the chrome free coating material in 2003 and is able to produce on commercial basis in 2005.

Baosteel finished annual maintenance of 1,580 hot rolling unit(2008/11/10)

According to the production and logistic adjustment plan for Oct 2008, Baosteel hot rolling plant began the ninth annual maintenance of 1,580 unit on 15th Oct, and CMCC Baosteel Technology took most parts of the work.
One of the important node projects was the rebuilding of roll table mudsill in crude rolling area and the building of the foundation. Learned from the successful experiences in 2006 maintenance, the work team made detailed plans, and finally finished the maintenance in 15 days on 29th Oct, securing the smooth operation of the rolling line.
1,580 unit is one of the main production lines in the hot rolling plant, and the maintenance will be carried out every two years. According to the maintenance plan by Baosteel, August will see the peak of annual maintenance, which means annual maintenances of 18U3 (taking 16 days), 2BFTRT (13days) and 1,580 unit (15 days) will be carried out at the same time. However, CMCC Baosteel Technology managed to complete the target in time.

Baosteel suffers from high-priced stocks of iron ore(2008/11/7)

Baosteel is suffering from high-priced iron ore bought in February and June this year. As of the end of September, Baosteel’s inventory value has increased by 13.07 billion yuan to 52.14 billion yuan since early this year, partially due to the rising costs of iron ore, coal and scrap.
However, the delivered price of some imported fines in October dropped to $80 per ton from $147.82 per ton in September and has slumped over 43 percent since the end of August. Besides, the price of various steels has plunged since October with some dropping 1,000 yuan per ton in ten days.

Hebei Steel signs deals with foreign roller giants(2008/11/7)

Hebei Iron and Steel Group signed strategic cooperation deals with seven foreign roller manufacturing giants including Akers of Sweden, British Roller Manufacturing Co., Ltd., GP Roller of Germany, Hitachi of Japan, Innse of Italy, Nippon Steel and Union Electric Steel Corp of the United States.
According the agreements, the suppliers will offer the steel giant steady supply of high quality regular rollers for hot, cold rolled sheet and wide plate at a cheaper price.

Hangzhou Steel’s profit up 68% in 9-month period(2008/11/6)

Hangzhou Steel had sales revenue of 53.87 billion yuan in the first three quarters, up 79.62 percent year-on-year; a profit and tax of 2.77 billion yuan, up 66.58 percent and a profit of 1.36 billion yuan, up 68.47 percent.
The company’s chairwoman and party secretary Tong Yunfang calls on several measures to ensure a steady development of the company, which include overheads reduction, properly dealing with non-steel businesses such as trade circulating and real estate and promoting updates, energy saving and innovation.

Baogang to begin wide plate facilities maintenance(2008/11/6)

Baogang is to begin the maintenance of wide plate production facilities, and now electric and machinery company of China Second Metallurgic Construction Corporation Limited (CSMCC) who is responsible for the project is making preparations. The maintenance will be key to the wide plate production and quality.

Shanxi Coking Coal Group signed medium long term strategic cooperation agreement with Lingyuan Iron and Steel Group(2008/11/5)

On 20th Oct, Shanxi Coking Coal Group and Lingyuan Iron and Steel Group signed medium long term strategic cooperation agreement. Both sides have exchanged information and discussed about the economic situation in and outside China, and the price trend of iron and steel and coal, and also the cooperation between the two groups.
According to Shanxi Coking Coal, though the market for iron and steel and coal is weakening, Lingyuan Iron and Steel signed cooperation agreement with Shanxi Coking Coal, which showed the good relationship between the groups. Based on the agreement, both groups will together cope with the fluctuating market, and make further development and Shanxi Coking Coal will supply coal with a stable price, helping iron and steel companies to deal with the shock from the market.

Wisco’s Q3 net profit up 40 percent(2008/11/4)

Wisco posted a 3rd quarter net profit of 2.26 billion yuan, up 40.28 percent, and earnings per share of 0.288 yuan. The company’s inventory value increased by some 2.6 billion yuan due to a higher price and increased amount.
Jiuquan Hongxing had a net profit of 58.52 million yuan in the third quarter, down 68.35 percent and earnings per share of 0.07 yuan.
Handan Steel had a net profit of 267.47 million yuan, down 2.72 percent and earnings per share of 0.095 yuan.
Anyang Steel had a net profit of 120.78 million yuan, down 51.05 percent and earnings per share of 0.05 yuan.

Steelmakers’ profitability slumps in Q3(2008/11/3)

According to the CISA, China’s steelmakers had a profit of 30.38 billion yuan in the third quarter with a monthly average of 10.13 billion yuan, down 38.16 percent from that in the first half of this year.
The CISA vice president Luo Bingsheng said large and middle sized steelworks had sales profit margin of 7.61 percent in the first half, but dropped 6.21 percentage points to 1.4 percent in September. 23 of them posted losses in September, accounting for 32.4 percent of total number.
Luo blamed the current situation on the slowdown of China’s real economy and GDP resulting form the US subprime crisis and the financial crisis. He suggested that mills control gross output, carry out structural optimization and expedite pace to eliminate capacity as countermeasures.

Ansteel lowers output target for 2008(2008/11/3)

One senior official from Ansteel said the company has slashed its output target for 2008 by 10 percent on falling prices and the slowdown of growth in China’s economy. Steel prices in December are expected to slump 30 to 40 percent from peaks in August. Earlier, Ansteel, China’s second largest steelwork next to Baosteel, aimed to produce 18 million tons of steel this year, up 13 percent from 16 million tons last year.

Alternative iron ore supplies guarantee stable operations(2008/10/31)

Jinan Steel said in a statement that the mil has got enough iron ore stocks from domestic and overseas sources to guarantee a stable operation. It is reported that Brazil’s Vale had suspended iron ore delivery to Chinese mills including Jinan Steel after the Chinese buyers uniformly turned away Vale’s request for a price hike.

Xinyu Iron and Steel realized net profit 212 million Yuan during the third quarter(2008/10/31)

According to Xinyu Iron and Steel Company Ltd, the company realized net profit 212 million Yuan from July to September of 2008; and the net profit for the first nine months totaled 684 million Yuan.

Hanggang realized net profit 95 million Yuan during the third quarter(2008/10/31)

According to Hanzhou Iron and Steel Group Company, the company realized net profit 95 million Yuan during the third quarter of 2008; and the net profit for the first three quarters of 2008 totaled 401 million Yuan.

Lingyuan Iron and Steel had a net profit of 309 million Yuan for the first three quarters(2008/10/30)

During the first three quarters of 2008, Lingyuan Iron and Steel realized sale income 7.704 billion Yuan, increasing by 53.39% from that of the same period in 2007; profit 377 million Yuan, up by 5.22%; and net profit 309 million Yuan, up by 11.57%. Meanwhile, the operation costs during the first nine months were 6.931 billion Yuan, increasing by 55.03% from a year ago.
From July to September, the company realized sale income 2.459 billion Yuan, declining by 12.47% from a quarter ago; and profit 29 million Yuan, down by 87.17%; and net profit 34 million Yuan, down by 81.21%. And the operation costs during this period were 2.299 billion Yuan, down by 5.06% with the same comparison.
Based on the operation results, the growth of profit during the first three quarters was lower than the average of the industry, which is mainly due to that the main products from iron and steel sector were hot band steel and long products, and the company purchased ores from the group at a price equivalent to that in the market. it is learned from the report that the ore price fro Q3 was 1,212 Yuan per ton, compared to the price in the market.

The net profit of Laigang in Q3 declined by 26%(2008/10/29)

According to Laigang, Company, from July to September of 2008, as the increase in raw materials was higher than that of steel prices, the company had a net profit of 26.28% lower from a year ago. In Q3, Laigang realized net profit 225 million Yuan, down by 26.28% from a year ago; and profit per share of the first three quarters was 0.95 Yuan. Due to the hike in raw materials, the operation costs for Q3 increased by 50.68%; and the operation income was 46.18% higher from a year ago, as the prices for steel products rose.
Meanwhile, as receiving no subsidy from the government by the end of Q3, the company had a non-business income decreased by 37.46 million Yuan from a year ago. However, thanks to the lower tax rate and other preferential policies, the company had an income tax of 230 million Yuan lower.

Angang had a net profit for Q3 of 28% higher from a year ago (2008/10/28)

According to the business report for Q3 by Angang, the company realized net profit 2.273 billion Yuan, increasing by 28.93% from that of the same period in 2007; and profit per share came to 0.314 Yuan, up by 5.72%; and rate of return on equity was 3.89%, down by 1.38 percent from a year ago.
According to the report, the increase in operation income during the third quarter of 2008 was due to the rises in sale prices for steel products and the improved product mix, and the increased operation costs was due to hikes in prices for raw materials and fuels.
The devalue in assets during the reporting period was larger from a year ago, and the main reason was that the steel market weakened, and the prices declined, causing the costs of stock products exceeded the net realizable value. And the provision for inventory impairment of finished products was 88 million Yuan, that for products under production was 394 million Yuan, and the that of raw materials was 397 million Yuan.
The increase in return from investments during the reporting period was due to the 15 million Yuan of dividend in cash from WISDRI. The higher operation profit, gross profit and net profit from a year ago were due to the increased steel products prices, improved product mix and cost control measures.

Chongqing Iron and Steel had a profit of 96% higher during the first three quarters (2008/10/27)

According to the business report issued by Chongqing Iron and Steel, during the first three quarters, the company realized net profit RMB 796 million, increasing by 96% from a year ago, and the main reason was that the net profit had a hike in Quarter3, to 1.17 times. But, due to the rising account receivable, the cash for operation declined by 90%.
According to Chongqing Iron and Steel, the company realized a turnover of RMB 13.438 billion during the first nine months, increasing by 48.6% from a year ago; and net profit RMB 796 million, increasing by 96.5%; and diluted profit per share came to RMB 0.46. The company had net profit for the first half of 83.3% higher.
Chongqing Iron and Steel referred the hike in profits to the active market in domestic, and rising prices for steel caused by high cost raw materials. Chongqing Iron and Steel managed to take the opportunity in the market, and improved the product mix, and secured the maximum profit, though the prices for steel weakened in Q3. From July to Sep, the company realized an operation income of RMB 4.591 billion, up by 39%; and a net profit of 117% higher, to RMB 312 million.

Baosteel cuts prices again(2008/10/24)

Baosteel announced that it will cut the price of hot rolled low carbon steel by 800 to 1,000 yuan per ton for December shipment; that of hot rolled pickling by 1,000 yuan per ton; that of ordinary cold rolled by 900 yuan per ton; that of hot-dip galvanized, electric galvanized and aluminum-zinc by 700 to 900 yuan per ton. That of non-oriented electric steel and tinplate remains unchanged.
Ansteel also lowered the price of hot rolled, cold rolled and color coating by 1,100 yuan per ton to 3,920 yuan per ton for hot rolled and 4,740 yuan per ton for cold rolled.
According to the latest data, the domestic construction steel and hot rolled markets suddenly climbed from October 20. The Shanghai construction market extended this trend as of yesterday. In the Guangzhou market, various construction steels were up 20 to 130 yuan per ton. However, it is too early to tell whether the upward trend implies the start of a stable market or just a temporary rebound.

Hebei Steel Mining sets Q4 target(2008/10/23)

Hebei Iron and Steel Group Mining Company, founded on September 21, plans to produce 1.66 million tons of iron ore concentrates in the fourth quarter of this year, up 21.9 percent from original plan; 9.55 million tons of ore, up 13.3 percent; and 15.47 million tons of strip mining, up 4.2 percent.

Further iron ore price rise impossible(2008/10/23)

There is no reason for the prices of iron ore to further climb as the prices have increased by 500 percent in the past five years and iron ore stocks at Chinese ports have reached 70 million tons, said Xu Lejiang, chairman of Baosteel Group.
Furthermore, the downstream auto and home appliance sectors have seen a reduction in orders. How long the vibrant markets of engineering machinery, oil products and shipbuilding could last remains unknown. Plagued by high inventory of finished products, fuel and raw materials, an increasing number of domestic mills have joined a move to cut production.
Some mills’ senior executives pointed out, however, instead of slashing output, the steel industry should eliminate outdated, low efficient facilities, develop new products and adjust structures to guarantee a sustainable development.

Xiangtan Steel to produce 10 million tons by 2010(2008/10/22)

Xiangtan Iron and Steel Group announced on October 16 that it would produce 10 million tons of steel by 2010, create sales revenue of 50 billion and a profit and tax of five billion yuan.
The mill is expected to produce six million tons of steel in 2008, create an operating revenue of 36 billion yuan, a profit and tax of 3.6 billion yuan and a profit of two billion yuan. The mill’s structure has been converted into “premium steel” such as wide heavy plate from “ordinary steel” like wire rod in the past decade. Its products have been applied to shipbuilding, offshore petroleum projects and other national landmarks such as new CCTV buildings and Nanjing Dashengguan Bridge.

Social responsibility report released by Xiangtang Steel(2008/10/21)

Xiangtang Steel released its first social responsibility report on October 16 to commemorate its 50th anniversary. The report makes a full illumination on the mill’s great diligence in conducting social responsibility in the past five decades. Xiangtan Steel donated five million yuan to the victims in the early year’s snow disaster that swept through southern China even if the mill itself lost more than 400 million yuan as a result of almost entire halt production from the disaster. The mill again made a donation of more than seven million yuan as well as disaster-relief materials to the May 12 earthquake disaster in Sichuan.
In 2007, Xiangtan Steel had sales revenue of 25.1 billion yuan and a profit and tax of 3.23 billion yuan. Since the beginning of the 11th Five Year Plan, it has invested more than 300 million yuan in 20 environmental protection projects including waste gas and sewage water treatment and some legacy problems.
The mill is 2nd, next to Wisco, in the domestic steel industry to release such a social responsibility report.

An’gang signed cooperation memorandum with Metal One of Japan(2008/10/21)

On 15th October, An’gang of China signed documents of memorandum of cooperation on expanding business and establishing strategic relationship with Metal One of Japan, which means another important step of An’gang on constructing an international iron and steel group and boosting the operation in world market and cooperation with major players in global market.
According the document, both sides agreed to cooperate on steel sale and establishing strategic relationship. Metal One will boost the sale of steel products from An’gang in oversea markets (including Japan) through its global network, and both sides will strengthen the partner-relationship and communication on sale strategy and information exchange, and also the cooperation on oversea projects.
Metal one was established in January 2003, formed from the combination of iron and steel business of Mitsubishi and Sojitz. Metal One has 36 metal producing companies in China, including 15 steel products processing centers. Taking advantages of experiences on the sale of iron and steel products in Japan, Metal One now is actively in markets in Asia, Europe, Middle East and USA, and taking part in the construction of sale network in those areas.
Though the cooperation between the two is not long, the effect is noticeable. The document will mark a new level for the cooperation between the two, and bring more opportunities and profits, contributing to the international strategy of An’gang.

Shougang delays start-up as steel prices drop(2008/10/20)

Shougang has postponed the start-up of a new steel mill on the coast of northern China as steel prices plunge below the cost of production. The Caofeidian project was originally scheduled to start production on October 18. When the project will be commissioned remains unknown.
As of October 9, the price of steel in China plunged roughly 30 percent to 1,120 to 2,600 yuan per ton from the peak of 6,338 yuan per ton in June of this year. The price of Shougang-origin products dropped 800 to 2,400 yuan per ton to 3,400 to 3,600 yuan per ton. The coil is 1,000 to 2,000 yuan per ton higher than its production cost, at about 3,500 yuan per ton.
Shougang Caofeidian project has its full name of Shougang Jingtang Iron and Steel Works, in which Shougang Group holds 51 percent equity and Tangshan Steel holds the remaining 49 percent. By 2010, the project will produce 9.7 million tons of steel per year.

Hebei Iron and Steel Group signed strategic cooperation agreement with Danieli(2008/10/17)

On 7th October, Hebei Iron and Steel Group signed long term strategic cooperation agreement with Danieli of Italy, a famous metallurgic facility manufacturer in the world. Having purchased eleven large equipments including steel melting continuous rolling machine from Danieli, Hebei Iron and Steel has had a good cooperation with Danieli. According to the agreement, both sides will have an apprehensive cooperation on project construction, facilities manufacturing, spare parts supplying and technology service. Danieli will provide high quality products, higher price discounts and better services to Hebei Iron and Steel.

Shougang signs deepening cooperation deals with Shanxi Coking Coal(2008/10/15)

Shougang and Shanxi Coking Coal Group held a signing ceremony for deepening cooperation frame agreement on October 12. Zhu Jimin, chairman of Shougang, and Bai Peizhong, chairman of Shanxi Coking Coal Group, attended the ceremony, during which Shougang Jingtang Company and Shanxi Coking Coal Xishan Coal & Power Group also inked a MOU on a joint coking project.

Masteel to scrap 1.8 million tons outdated capacity by 2010(2008/10/14)

Masteel will shut down four 350 to 450-cubic-meter blast furnace with a capacity of 1.8 million tons a year in total, eliminate two million tons of steel capacity and one million tons of rolling steel capacity by 2010.
In 2007, Maanshan City scraped 2.69 million tons of pig iron capacity, 4.03 million tons of steel capacity and 250,000 tons of rolling steel capacity.

Nanchang Steel expects results slump in Q3(2008/10/14)

Nanchang Steel expected a year-on-year attribute net profit slump and a small profit margin in the first nine months of this year. It had an net profit of 151.72 million yuan during the same period last year.

Valin Steel’s stainless project still hangs in doubt(2008/10/13)

Valin Iron and Steel said in a notice that Valin Xiangtan Steel and the People’s Government of Xiangtan County signed a strategic letter of intent on September 18, 2008 to build a 700,000 t/y stainless production line and straight welded pipe production line for an investment of nine billion yuan, subject to attaining relevant approval and the right of land usage. The company denied local media’s reports about striking a strategic deal, saying an official agreement is expected in 2009.

Benxi Steel’s BF blew off(2008/10/13)

Benxi Steel blew its No.3 blast furnace off on October 8 after the facility has been operating for half a century. During the past 52 years, the BF had produced 30.17 million tons of premium pig iron in total. It was scraped for the sake of energy saving, emissions reduction and environmental protection.

Baosteel finishes installation of new BF shell(2008/10/10)

Baosteel’s branch finished installation of the lower section of a BF shell on October 5, marking the end of installing the three-section BF shell, as part of a major repair work in the company. The upper section of the shell was installed on October 1.

CR non-oriented silicon steel test produced in Tonghua Steel(2008/10/9)

Jilin Tonghua Steel Cold Rolled Sheet Co., Ltd. entered a stage of test producing cold rolled continuous annealing non-oriented silicon steel. The project, which started construction in August 2007 and is due to be commissioned on December 28 of this year, has a design capacity of 400,000 tons per year with a total contract value of 38.88 million yuan. The facilities include two continuous annealing machines and the No.1 and 2 recoil package machines.

Premier Wen visits Wisco Fangchenggang project(2008/10/9)

Premier Wen Jiabao recently paid a visit to a 200,000 dwt dock in Guangxi-based Fangchenggang project, promoted by Wisco, and emphasized three principles concerning the project. (1) The project must produce premium steel products; (2) The project must introduce the most advanced technology and management in the world; and (3) The project should do its best to protect local environment, save energy and cut emissions.
According to Deng Qilin, general manager of Wisco, the project will produce 25 percent of hot rolled sheet, 40 percent of cold rolled sheet, medium heavy plate measuring up to 5m in thickness, auto sheet, silicon steel and home appliances sheet.

Ansteel Bayuquan steel project starts operation(2008/10/8)

A 1,580 continuous hot rolled production line at Ansteel Bayuquan steel project manufactured the first piece of hot rolled sheet with billet produced from its 1,450 casting machine as raw material, marking an entire run-through of the project consisting of iron making, steel making, continuous casting and hot rolled processes.
The continuous hot rolled production line is another self-integrated machine with world leading technology next to its likes including Ansteel’s 1,700 and 2,150 lines and Jinan Steel’s 1,700 line.

Xinyegang buys stake in Jiangsu Baofeng Group(2008/10/7)

Xinyegang was understood to have bought 50 percent equity in Jiangsu Baofeng Special Steel Group, a Dafeng-based unit of Juxing Group, Jiangsu to produce stainless seamless pipe. With advanced stainless steel melting facilities, Baofeng produces 25,000 tons of stainless cold drawn, cold rolled seamless pipe a year and creates an annual production value of more than 800 million yuan.

Masteel inks deal on iron ore dock in Zhanjian(2008/10/7)

Four companies – China Shipping Development Co., Ltd. Tramp Co., Masteel, Zenith and Zhanjiang Port (Group) – signed a strategic cooperation frame deal covering advancing the construction of a 300,000 dwt iron ore dock in the Zhanjiang Port prior to 2011.
China Shipping Development Tramp will be in charge of transporting iron ore for Masteel and Zenith from the Zhanjiang Port to ports along the Yangtze River designated by the two mills. By 2011, the Zhanjiang Port will be selected as an option port berthing 300,000 dwt vessels by Masteel and Zenith, who intend to import more than three million tons and two million tons of iron ore a year respectively.

Jiuquan Steel to top 10 million t/y mark(2008/9/28)

At its 50th anniversary, Jiuquan Steel has become the largest steel producer in northwest China by producing eight million tons of steel a year and creating a sales revenue of 35 billion yuan. In 2007, the mill, consisting of three production bases – Jiayuguan headquarters, Shanxi Yigang and Lanzhou Yugang, ranked 16th among the domestic steelmakers and 172nd among China’s top 500 enterprises with a total asset of 41.3 billion yuan. By the end of the 11th Five –Year Plan, Jiuquan Steel will form a 10 million t/y capacity and try to create a sales revenue of 50 billion yuan.

Handan Steel stops producing ordinary wire(2008/9/26)

Hebei Iron and Steel Group Handan Steel shut down its last ordinary wire rod production line that has been operating for 28 years, a move that will allow the mill to raise its premium sheet ratio to 83 percent.
Meanwhile, Handan Steel also builds a lot of world’s leading production lines such as a 1.3 million t/y CR sheet production line and two 120,000 t/y color coating production lines. The mill now can produce hot rolled sheet, cold rolled sheet, color coating sheet and medium plate.

Wisco signs jv frame deal(2008/9/26)

Wisco and Shanxi Coking Coal Group signed a cooperation frame agreement on September 19. Both companies will jointly invest in coking projects of Wisco Fangchenggang project, develop and consolidate mines of Fenxi Mining Group controlled by Shanxi Coking Coal Group, set up a joint venture and research team and establish a mutual benefit mechanism.

Forklift trucks used to ensure wide plate production(2008/9/25)

For the past two months, Baosteel has been using forklift trucks to transport hot wide plate slab as material for its wide plate mill whose feeding device is now forced to be shut down for an update mission of adding a rough mill to the existing plate mill.
Swedish Kalmar-origin DCD25025T forklift trucks were used this time to ferry each piece of hot slab measuring 15-ton in weight and a temperature of 1,100 degrees centigrade per 2.5 minutes round the clock. As of September 17, a total of 20,304 pieces of hot slab weighting some 29 tons had been fed to the plate mill through this way, marking the longest period of transporting hot bend via forklift truck in the world.

Ansteel fills blank with stainless Steckel mill(2008/9/24)

Ansteel Heavy Machinery Co., Ltd. developed the domestic first whole-set stainless Steckel mill in mid-September for Qingshan Longgang’s 600,000 t/y stainless strip and silicon strip project, promoted by Qingshan Stockholding Group Co., Ltd in February 2006, ending the history of Ansteel’s incapability to produce such facility. The existing two stainless Steckel mills in the country are all introduced from the overseas markets.

Baosteel to set up shipping jv(2008/9/24)

China Shipping Development was cleared by the NDRC to set up a shipping joint venture in Hong Kong with Baosteel Resources, a subsidiary of Baosteel Group. The new company, called the Hong Kong Haibao Shipping, is 51 percent owned by China Shipping and 49 percent by Baosteel Resources, with a total investment of $703.66 million. The company will mainly deal with ocean transportation for imported bulk cargoes including iron ore.

Shagang aims to buy NAMISA(2008/9/23)

China’s largest non-governmental steelmaker, Jiangsu Shagang Group is in talks to buy assets in Namisa, an iron ore subsidiary of Brazilian CSN. The deal won’t be concluded until September, as the Brazilian company has not offered a price yet. Other would-be participants include China’s Baosteel and a consortium composed by Japanese five largest steel producers and a trading house Itochu.
Namisa has an annual capacity of as much as 14 million tons with a market value of up to $10 billion.

Valin, ArcelorMittal set up electric steel jv(2008/9/22)

Hunan Valin Iron and Steel Group and ArcelorMittal officially signed a cooperation agreement to establish Valin ArcelorMittal Electric Steel Co., Ltd in the site of Lingyuan Steel for a total investment of 6.5 billion yuan. The 50:50 joint venture, with a registered capital of 2.6 billion yuan, will produce 400,000 tons of non-grain oriented electric steel per year and 200,000 tons of grain oriented electric steel from next year.
Luxemburg-headquartered ArcelorMittal is the world’s largest steel group with an annual capacity of 130 million tons, accounting for about 10 percent of the total output worldwide. The group boasts the most advanced technologies in the production of auto sheet, electric steel and stainless steel.

Wisco exported 907,800 tons of steel products during the first eight months up 19.1%(2008/9/19)

From Jan to Aug, Wuhan Iron and Steel Company (Wisco) exported steel products 907,800 tons in total, increasing by 19.1% from a year ago; and made a foreign exchange of US $711 million, up 64.7%. And Wisco has completed the year plan ahead of time.
While strengthening the advantage of hot rolled steel products, the company improved the product mix for export, and managed to lift the ratio of cold rolled steel products and other high value added products. Noticing that the price in international market was higher than that of domestic market, and the demand from domestic was weak, Wisco adjusted the sale policy and increased the export volume, making a higher profit and return. Meanwhile, the company focused on traditional markets like South Korea, South Asia and EU and so on, and developed new markets like Americans. Based on American market, the company succeeded in development of new market for galvanized products.

Baosteel moves to greenfield production(2008/9/19)

Baosteel, as a modern large steel producer, is among the forerunners in China whose conception and management on environmental protection is showing great foresight.
The group has successively developed hot rolled high-strength sheet, cold rolled high-strength IF steel, water-based self-adhesive coating electric steel and chrome-free anti-fingerprint galvanized sheet since 2004, following it passed ISO14001 environmental management system certificate in 1998.
Its solid waste utilization ratio reaches more than 98 percent. Blast furnace slag, as a concrete material after being processed, has widely been used in the construction of key projects in Shanghai such as electromagnetic suspension railway and the Lupu Bridge.

Baosteel Resources signs strategic LOI(2008/9/18)

Baosteel Resources and Guizhou Shuicheng Mining Group struck a strategic letter of intent to secure a long-term and steady coal supply. The LOI covers capital cooperation, development of new coalmines, purchase and buying of coal, coal coking projects, consolidation of local smaller mines and setting up logistics firms.

Baotou Steel signs long-term cooperation deal(2008/9/18)

Baotou Steel held an acceptance signing ceremony for a 1.4 million t/y wide heavy plate mill contracted by Siemens and SMS Demag of Germany on September 10 while striking a long-term cooperation agreement with SMS Demag.
The operation of the plate mill, led to a balance among the production of pig iron, steel and steel products, is part of a 10 million t/y steel project and a key project for structural adjustment of Baotou Steel.

Ansteel Bayuquan steel project starts production(2008/9/17)

Ansteel Bayuquan Iron and Steel project started production on the morning of September 10, with an annual steel capacity of five million tons, pig iron capacity of 4.93 million tons, wide plate capacity of two million tons and hot rolled steel capacity of 2.96 million tons. The project, covers an area of 8.3 square kilometers, mainly produces such high-value added materials as high-strength plate, shipbuilding plate, naval ship plate, bridge plate and engineering machinery plate with the most advanced facilities and processes including the world’s largest 5,500mm wide plate mill.

Baosteel X80 pipeline adopted by West-East Gas Line II(2008/9/17)

Baosteel recently started shipping large-diameter straight welded X80 pipe to the West-East Gas Line II in Xinjiang. This was done after the group worked out solutions on plate rolling and UOE forming processes and successfully developed X80 pipeline with 1,219mm diameters and 22mm thick.

Shougang signs cooperative deal(2008/9/17)

Shougang and Sinosteel Group signed a strategic cooperation deal on September 10. Top officials of both Groups attended the signing ceremony.

Shougang projects boost local revenue growth(2008/9/16)

Shougang Group and its affiliated arms have reinforced investment in projects such as Bohai International Conference Center, Shougang Changbai Machinery Manufacturing Plant, boarding houses for Shougang Jingtang Iron and Steel Company and Zhongshou Steel Structure, which created a local revenue of 10.8 million yuan in the first eight months of this year in Tanghai County, Hebei.

Chongqing Steel relocation project passed environmental assessment(2008/9/12)

Chongqing Steel was cleared for its relocation project in terms of environmental assessment. According to an environmental impact report, the project will help the steel industry in Chongqing grow in a better and faster way, cut emissions of main pollutants dramatically, enhance the level of resources utilization and improve air quality in the city proper.

Baosteel Resource and Jiaozhuo Coal established a joint venture for development of Zhaogu No2 Coal Mine(2008/9/11)

The cooperation between Baosteel and Henan Jiaozuo Coal Industry Group stepped to new level. Recently, Baosteel Resource and Jiaozuo Coal held a ceremony for the Zhaogu No2 Coal Mine Joint Development & Jiaozuo Coal Industry (Group) Xinxiang Energy Company Joint Venture Agreement. The agreement will contribute to Baosteel’s supply chain strategy, and securing long stable coal supply.
Jiaozuo Coal has a history of 100 years on coal mining, with low sulfur, low ash and better thermal stability high quality anthracite as the main product, and the company is one the major anthracite production base in China. Jiaozuo Coal has a long cooperation relation with Baosteel.
Baosteel Resource signed a Letter of Intent with Jiaozuo Coal in Oct 2006, and basing on the principle of cooperation and win-win, they had the formal agreement finally. According to the agreement, both sides will establish a joint venture, Jiaozuo Coal Industry (Group) Xinxiang Energy Company, to operate and develop Zhaogu No2 Coal Mine project, and coal production, washing, further processing, and so on.
Zhaogu No2 Coal Mine has a minable reserve of 147 million tons, and the design capacity is 1.80 million tons per year. The main product from the mine is low ash, ultra low sulfur, low phosphor, higher thermal stability, high calorific value and high strength No 2 anthracite. When launch operation, the project will supply Baosteel with antracite lump for COREX furnace.

SinoSteel Group integrates with Guangxi Bayi Ferroalloy Group(2008/9/11)

On 3rd Sep, Sinosteel Group of China signed frame agreement of enterprise reform with Laibin City Government of Guangxi Zhuang Autonomous Region. According to the agreement, both sides will cooperate to reform Guangxi Bayi Ferroalloy (Group) Company Ltd, and develop the company a major integrated ferroalloy producer in China.
Sinosteel is a central enterprise under the administration of the State-Owned Assets Supervision and Administration Commission, and a large multi-national enterprise that integrate resources development, trade & logistics, engineering project and science & technology, equipment manufacturing and specialized service, providing comprehensive auxiliary service for steel industry, especially steel mills. Sinosteel realized a sale income of 88.6 billion Yuan during the first half, and an estimated sale income of more than 150 billion Yuan for the whole year of 2008.
Guangxi Bayi Ferroalloy is the largest manganese-contained ferroalloy producer in China, with a capacity of 300,000 tons per year, and an annual sale income of 2.0 plus billion Yuan.
After the integration, basing on the advantages on finance, technology and management of Sinosteel, Sinosteel will help further strengthen the main business of Bayi Ferroalloy, and develop products with high value added, and set a research and development base for new technology and recycling economy, and develop the company a leading ferroalloy producer in China and in the world with high grade products and profits while focusing on R&D and innovation, with an investment of about 10.4 billion Yuan. When the concerned projects completed, Bayi Ferroalloy will have a ferroalloy capacity of 1.08 million tons per year, and stainless steel capacity of 800,000 tons per year, while have a sale income of more than 20.0 billion Yuan per year, and profits of about 4.5 billion Yuan per year.

Sinosteel eyes ferroalloy assets in Guangxi(2008/9/10)

Sinosteel recently signed a frame contract with the Laibin city government, Guangxi to merge with Guangxi Bayi Ferroalloy (Group) Co., Ltd. According to the deal, Sinosteel will invest about 10.4 billion yuan to help the group form a ferroalloy capacity of 1.08 million tons per year and a stainless steel capacity of 800,000 tons; create an annual sales revenue of more than 20 billion yuan and a profit and tax of about 4.5 billion yuan.
Bayi Ferroalloy Group is China’s largest producer of manganese ferroalloy and the biggest ferroalloy production base in Guangxi. It currently runs 23 electric furnaces with a manganese ferroalloy capacity of 300,000 tons per year and a sales revenue of more than two billion yuan.
Sinosteel brought Jilin Ferroalloy Co., Ltd. under its scope last year following purchased assets in Zunyi Ferroalloy Plant, about 70 percent shares in Tuoli Guoyuan Chrome Ore Company in Xinjiang Tacheng area for 200 million yuan and assets in Tuoli Taihang Ferroalloy Plant. These moves not only are facilitated to enhance the centralization degree of the ferroalloy industry in the country, but also help Sinosteel ensure a steady supply of ferroalloy.

Benxi Steel to close iron plant(2008/9/8)

Benxi Steel will shut down its 103-year old No.1 Iron Plant by the end of this year to meet the environmental protection requirements.
The plant operates two 380-cubic-meter blast furnaces, two 75-square-meter sintering machines, a 36-hole coking oven and a 55-hole coking oven, produces 950,000 tons of pig iron a year, 450,000 tons of coke, 1.8 million tons of sintering ore and 180 million cubic meters of gas.
On the other hand, the plant discharges 4,000 tons of dust per year, accounting for three percent of the city’s total dust emissions, 8,000 tons of sulfur dioxide, accounting for six percent and 2,000 tons of COD, representing 4.4 percent.

Baosteel completes earth work for COREX furnace(2008/9/8)

Baosteel recently completed earth work for its No.2 COREX furnace as part of the Luojing II project, which will be followed by an overall steel structure manufacturing and installation. With two largest COREX furnaces in the world, Baosteel will become the world’s largest steelmakers by using non-blast furnace iron making process.

Shougang Special creates huge profit(2008/9/5)

As of the end of August, Shougang Special Steel has exported 45,000 tons of steel products to seven countries and regions including South Korea and Brazil, created a sales revenue of 296 million yuan and a profit of 10 million yuan as well as developed five new products.

Ansteel’s output hit by troubled BF(2008/9/4)

Ansteel may lose 130,000 tons of pig iron production, accounting for 0.8 percent of its total output, as a result of the shutdown of its No.3 blast furnace due to a coke leakage accident occurred at around 8 pm on August 25, 2008. The furnace is expected to resume normal operation in ten days.

Xin’gang Company had a net profit during the first half of more than 20 times higher from a year(2008/9/4)

According to the medium report for H1 2008 on 30th Aug, Xingang Company had an operating profit of 598,855,700 Yuan during the first six months of 2008, increasing by 889.44% from that of the same period in 2007; and gross profit 587,417,300 Yuan, up by 855.52%; and net profit 471,650,900 Yuan, up by 2010.68%; and profit per share came to 0.34 Yuan.

CITIC Pacific sees profit hike in special steel sector(2008/9/3)

In the first half of this year, CITIC Pacific had a net profit of $HK 4.38 billion, down 12 percent year-to-year with a current profit increase of eight percent. The group’s special steel sector contributed up to $HK 1.84 billion to its total profit, up 64 percent.

Tisco, TGRC signs technical cooperation deal(2008/9/3)

Tisco, singling out in the fields of resources, facilities, product structures and technology development, signed a technical cooperation frame agreement with the Tubular Goods Research Center of CNPC, who specializes in research on OCTG and new products development. Both companies have been keeping a good relationship, which has been strengthened in recent years.

Baosteel’s half-year profit up 18.2 percent(2008/9/3)

Baosteel posted a half-year operating revenue of 103.64 billion yuan, up 10.11 percent year-to-year, an operating profit of 13.10 billion yuan, up 6.12 percent, an attributable net profit of 9.65 billion yuan, up 18.2 percent with earnings per share of 0.55 yuan.
In the first half, the company sold 12.39 million tons of merchant billet and steel products and 4.6 million tons of exclusive and leading products. Baosteel cited the increase of gross profit to the sharp rise of steel prices and increased sales of high-value added products such as auto sheet, wide plate and electric steel.
However, the gross profit ratio of most steel products declined in the first half due to the hike of raw material costs. The gross profit ratio of cold rolled carbon coil was down 2.93 percentage points, that of hot rolled carbon coil was down 2.83 points, that of stainless coil was down 7.22 points, that of special steel was down 2.55 points, that of other products was down 6.94 points but that of wide plate was up 8.37 percentage points. The company had a net cash flow of 2.78 billion yuan, down 5.55 billion yuan with a net cash inflow of 12.71 billion yuan, down 3.81 billion yuan.
Baosteel predicted in a report that the domestic steel prices would remain stable in the second half. Uncertain factors will include rising costs of iron ore, supply deficiency and lower quality of coke and the expectations of the global inflation.
In the first half, the company completed 51.82 percent of an estimated 200 billion yuan operating revenue for the whole year.

Tisco’s net profit down 21.72 percent in H1(2008/9/2)

Tisco had a half-year operating revenue of 42.80 billion yuan, up 6.67 percent year-to-year, a net profit of 2.15 billion yuan, down 21.72 percent with earnings per share of 0.62 yuan, down 21.72 percent. The stainless steel maker contributed the decrease in profit to the slid of stainless prices, rising raw material costs and a strained railway capacity.
For example, the price of imported iron ore concentrates was up more than 80 percent, that of coking coal was up more than 100 percent, that of scrap was up 68 percent and that of ferrochrome was up 70 percent.

Baotou Steel raises captive iron ore supply(2008/9/2)

From January to July, Baotou Steel produced 2.60 million tons of iron ore concentrates and purchased 2.43 million tons of processing concentrates, meeting its demand for blast furnace operations. The mill invested 50 million yuan in Inner Mongolia Huanggang Mining, a controlling subsidiary of Baotou Steel, to increase its concentrates output to 800,000 tons per year from more than 200,000 tons in 2003. Iron ore exploration work is also progressing in Bayannaoer, Wulanchabu, Xilinhaote, Chifeng and Hulunbeier.
According to a guideline from the Inner Mongolia Autonomous Region Government, Baotou Steel’s consumption of feedstock purchased from the region should account for 60 percent of what it needs in total.

Chongqing Iron and Steel made new records on production and sale during the first half(2008/9/1)

According to the medium report by Chongqing Iron and Steel, due to the hike in prices in domestic steel market during the first half, Chongqing Iron and Steel had a sale income of 8.827 billion Yuan, operating profit 497 million Yuan, and net profit 484 million Yuan, increasing by 54.23%, 70.61% and 83.86% respectively from a year ago, and the profit per share came to 0.28 Yuan.
During the reporting period, centering on the target of 3.40 million tons of steel in 2008, Chongqing Iron and Steel focused on balancing the production and routine repair, lifting the production efficiency and strengthening the melting and increasing steel production while cutting iron output, and therefore managed to make new records on production. From Jan to June, the company produced 690,000 tons of coke, 1.5001 million tons of pig iron, 1.7501 million tons of steel and 1.6953 million tons of finished steel (including slabs and billets), up 1.59%, 2.88%, 4.45% and 5.91% respectively from those of the same period in 2007.
Keeping on watching and analyzing the domestic steel market, adjusting the sale prices accordingly, the company managed to lift the sale prices to a new record for main products. Meanwhile, the company strengthened the communication with customers, and improved the cooperation relations with strategic customers. During the first half, the company sold out steel products (including slabs and billets) 1.7055 million tons, and the ratio of production to sale volume came to 99.73%.
As the sale price hiked, sale volume increased, and the efficiency lifted, the company had a weighted average return on equity of 8.86% in the first half, 3.31 percent higher from a year ago. But, due to the hikes in prices for raw materials as iron ore, coal and ferro scrape, and other fees, the costs increased considerably, which had a bad effect.

Tangshan Steel’s net profit up 50 percent(2008/9/1)

Tangshan Steel posted a half-year operating revenue of 30.51 billion yuan, up 56.37 percent year-to-year; a net profit of 1.70 billion yuan, up 47.16 percent with earnings per share of 0.75 yuan and a sales revenue of 25.60 billion yuan, up 44.72 percent. However, its gross profit ratio fell to 12.68 percent due to the soaring prices of iron ore and coke.

CKI eyes New Zealand’s iron ore assets(2008/8/29)

Cheung Kong Infrastructure Holdings Limited (CKI), a Hong Kong-listed infrastructure firm, has signed a HK$1.39 billion contract to acquire Taharoa Iron Sands Business (Taharoa) in New Zealand, the group’s second investment in the country this year. Taharoa, locates in the North Island of New Zealand, is rich in titanium magnetite sand resources with an exploitable reserve of 660 million tons. The company produces about 1.6 million tons of iron ore products per year with Fe content of 56.8 percent, including about 850,000 tons of iron sand mainly export to China and Japan markets.

Bayi Steel signs mining framework deal(2008/8/28)

Bayi Steel has recently signed a framework agreement with the Bureau of Geology and Mineral Resources Exploration of Xinjiang to jointly develop iron ore resource in Hejing county.

Vanadium held up the profit of Chenggang for the first half(2008/8/28)

During the first half of 2008, Chengde Iron and Steel of Hebei Iron and Steel Group had a sale income of 10,004 million Yuan. During the first six months, Chengde Iron and Steel had a vanadium slag output of 73,540 tons, increasing by 18,343 tons from the same period in 2007; and produced vanadium products of 5,461 tons, increasing by 1,601 tons. The output of V2O5 topped 1,000 tons per month in May and June in line.
From Jan to April, the price for vanadium products once went down, but rebounded and hiked since the middle of April. Noticing this, Chengde Iron and Steel increased the production of vanadium products and especially that of 80 ferro-vanadium, which had a higher value added, while lifted the pass rate of 80 ferro-vanadium. Therefore, Chengde Iron and Steel secured a good result for the first half of 2008, with the support of vanadium products.

Hanggang realized a net profit during the first half of 64.44% higher from a year ago(2008/8/27)

According to the medium report issued by Hanggang Company, during the first six months of 2008, Hangang realized operating profit 428,414,100 Yuan, increasing by 45.20% from that of the same period in 2007; and gross profit 417,424,500 Yuan, up 44.25%; net profit 306,144,900 Yuan, up 64.44% and profit per share came to 0.36 Yuan.
During the reporting period, with an improved production efficiency and systemic coordination effect, the company produced 1,487,000 tons of iron, 2,037,500 tons of steel and 1,539,700 tons of finished steel, increasing by 27.82%, 18.12% and 4.90% from a year ago, amounting to 52.36%, 53.90% and 57.45% of the year plan.
Basing on the market trend and the demand, the company strengthened the management of research, production and marketing, focusing on those products of high value added, like medium high strength cold heading steel, spring steel, free-machining steel and steel for engineering machines, therefore improving the product mix and product quality. Meanwhile, the company now is working for getting the attestation for ISO/TS16949.
During the first half of 2008, the company developed 51 new products, and the output reached 227,000 tons; and the ratio of high quality steel came to 75%, and the output of products with high value added increased by more than 20%.
Meanwhile, the company kept on trying to reduce the costs and improving the feed structure, and also the technologic and economic indexes. During the first half of 2008, the company reduced the coke ratio for iron melting and primary water consumption per ton steel by 22.94 kg/t and 2.45 tons, and lifted the sinter ores ratio for blast furnace to 72%, and so on.
Besides, the company played great importance on energy saving and emission decreasing, with the emission of COD down by 13.80% from a year ago.

Wisco, COSCO sign cooperative deal(2008/8/27)

Wisco and COSCO signed a strategic cooperation deal on August 22 to strengthen collaboration on the aspects of iron ore transportation, shipbuilding steel procurement and logistics. COSCO is a well-known shipping company with outlets scattering throughout the world. Wisco is a super large steel complex with a capacity of 30 million tons per year. The mill has to import most of iron ore it needs.

Xinjiang Bayi Steel’s net profit up 205.48 percent in H1(2008/8/26)

Xinjiang Bayi Steel produced 2.36 million tons of steel in the first half of this year, up 19.01 percent year-to-year; 2.24 million tons of steel products, up 18.88 percent; created an operating revenue of 10.42 billion yuan, up 74.54 percent and a profit of 411 million yuan, up 205.48 percent. The mill contributed the good performances to the result of the national macro regulation and backward elimination, the obvious slowdown of home crude steel output, higher raw material costs and strong demand.
Bayi Steel has decided to invest 475 million yuan to build a new bar and wire mill, which will produce 600,000 tons each of hot rolled rebar and high-speed wire rod a year catering to a growing demand in the local construction market.

Mongolia, Bayi Steel strike cooperation deal(2008/8/26)

Mongolia’s Altai Ore Co., Ltd. and Bayi Steel struck a cooperation deal on August 15. Altai will start providing Bayi Steel with iron ore from 2009 after a recent trial use by the mill is proved to be workable.

Beijing Shougang had a net profit for the first half of 42.26% higher(2008/8/25)

According to the half year report released by Beijing Shougang Company Ltd, during the first six months of 2008, due the strong demand in iron and steel market, and the increases in prices for iron and steel products, the company realized net profit 551 million Yuan, 42.26% higher from a year ago. And what is noticeable, Shougang realized the increase in net profit when the production was decreased due to Beijing Olympic Games and relocation of Shougang, and the sale volume of iron and steel products declined.
According the report, Shougang realized sale income 14.478 billion Yuan during the first half, increasing 12.58% from a year ago, including 13.401 billion Yuan from the main business, up by 13.60%. According to Shougang, due to the increases in prices for fuel and raw materials for iron and steel, the market price of iron and steel rose by a considerable content during the first half, and the demand for iron and steel products maintained strong since the beginning of 2008. Therefore, though the production costs also hiked due to the rising prices for raw materials, and the production and shipment of products declined, Shougang managed to have an increased income and profit, through improving product mix and efficiency. In the third quarter, as Beijing Olympic Games will be held then, and the output of iron, steel and finished steel will be decreased by 50% or so from a year ago, the company intends to focus on equipments repair and prepare for the post Olympic Games production, in order to bring down the influence of the production decline.

Panzhihua Steel’s listed arms post mixed results(2008/8/25)

Panzhihua Steel’s three listed subsidiaries announced their half-year results. Panzhihua Steel & Vanadium had an operating profit of 511.42 billion yuan, up 10.43 percent year-to-year and a net profit of 436.86 million yuan, up 0.33 percent with earnings per share of 0.13 yuan. The company produced 2.74 million tons of pig iron in the first half; 2.49 million tons of steel and 108,000 tons of vanadium slag, and created a production-sale ratio of 96.43 percent.
Panzhihua Steel Chongqing Titanium had an operating loss of 51.55 million yuan, down 982.74 percent; an attributable net loss of 46.32 million yuan, down 793.86 percent with earnings per share of minus 0.25 yuan and a gross profit ratio of minus 1.23 percent. The company blamed the poor results on the rapid hike of bulk raw material prices. Notably sulfur price rose nearly 700 percent to 6,000 yuan per ton in May from 900 yuan early this year and the price of nature gas has jumped 0.4 yuan per cubic meter this year.
Changcheng Special Steel Co., Ltd. had a sales revenue of 1.82 billion yuan, up 203 million yuan, or 12.57 percent; a gross loss of 55.83 million yuan, up 68.78 million yuan and a net loss of 57.44 million yuan, down 736.12 percent with earnings per share of minus 0.076 yuan. It produced 117,300 tons of steel, down 28,000 tons, or 19.27 percent and 223,200 tons of steel products, down 48,000 tons, or 17.7 percent.

Changgang knocks down 2 blast furnaces(2008/8/25)

Changgang Group has dismantled last two 100-cubic-meter blast furnaces, which were built in 1979. The No.4 and 5 furnaces had produced 2.1549 million tons and 2.0973 million tons of pig iron respectively in the past 27 years and were scraped because of their big emissions and heavy energy consumption.

Xinyu Steel launches No.5 coke oven(2008/8/22)

Xinyu Iron and Steel Co., Ltd. (Xinyu Steel) put its No.5 coke oven into operation on August 16 after the mill finished the third phase technical updates as part of a 3-million t/y sheet project, nearly one month ahead of schedule. The 943 million yuan update project, contracted by Shougang International Engineering Technology Co., Ltd, includes two 63-cell JN60-6 type 6m coke ovens, three coke dry quenching (CDQ) units, a 200,000-ton coal yard and a sewage treatment plant.
After full completion by the end of this year, Xinyu Steel will have an annual coke capacity of 2.5 million tons per year.

Nanjing Steel’s net profit up 10 percent(2008/8/21)

Nanjing Iron and Steel Co., Ltd. posted a net profit of 528 million yuan in the first half of this year, up 10.28 percent from last year and a main business gross profit ratio of 6.82 percent, down 3.43 percentage points with earnings per share of 0.314 yuan. The company produced 1.9163 million tons of high-value added steel products, accounting for 82.97 percent of total output; exported 332,900 tons of steel products, up 12.59 percent.
The company attributed the fall in the gross profit ratio to a year-to-year rise of 51.17 percent in main business cost. Its gross profit was down 22.5319 million yuan despite a rise of 45.16 percent in main business revenue.

Puyang Iron and Steel had a net profit of 596 million Yuan during the first half(2008/8/19)

From Jan to June of 2008, Puyang Iron and Steel in Hebei Province realized sale income 703 million Yuan, profits 654 million Yuan and net profit 596 million Yuan. Meanwhile, the company had an asset of 7.3 billion Yuan in total till the end of June 2008. With the support from commercial banks in the city, the company’s had one 120 tons converter and one 1,250 hot rolled steel coils production line launched operation in July, which boosted the crude steel capacity to 6.00 million tons, and rolling capacity to 6.00 million tons.

Shougang Cold Rolled Sheet Co. opens(2008/8/19)

Shougang Cold Rolled Sheet Co., Ltd., the group’s only premium steel production project in Beijing, received business license on August 12, 2008 and is to launch at the end of this year. Affected by the ongoing Olympic Games, three out of the four blast furnaces in Shougang have already been shut down with steel capacity limited to two million tons per year.
The 8.4 billion yuan project is jointly set up by Beijing Shougang Co., Ltd, Shougang Group and Beijing Automobile Investment Co., Ltd, with a registered capital of 260 million yuan.
The main facilities of the project started constructing on July 2, 2005. Pickling rolling and continuous annealing machines were completed in November 2007 and May 2008 respectively. As of the end of July 2008, the company had produced 178,000 tons of cold rolled sheet and 52,000 tons of annealing coil. Two galvanized machines will be hot commissioned in August and November 2008.

Masteel, Laiwu Steel benefit on higher steel prices(2008/8/19)

China’s steel producers enjoyed profitable results in the first half of this year thanks to a steady rise in steel prices. Masteel and Laiwu Steel posted a first-half net profit of 653 million yuan and 2.261 billion yuan respectively, up 103.52 percent and 29.99 percent year-to-year. Wisco also saw an increase of 37 percent in its net profit. The profit hike was down to rising steel prices.
Statistics showed the domestic composite steel price index in January grew less than 1 percent from a month earlier. However, the price indexes in February and May exceeded seven percent though this upward trend softened in March, April and June. The average price index stood at 144.77 points in the first half, up 30.92 percent from last year.
Meanwhile, production costs also shoot up in the first half. The price of PCI coal purchased by medium and large steelmakers was up 36.85 percent; that of coking coal was up 61.63 percent, that of coke was up 81.8 percent and that of imported iron ore was up 53.86 percent.

420 million Yuan steel products trading center was constructed in Linyi(2008/8/18)

On 12th Aug, Shandong Linyi Steel Products Trading Center, which had an investment of 420 million Yuan in total, was opened, and the relocation of Linyi Hedong Steel Market was over.
To modernize the market, and expand the industry chain of steel products, local government in Linyi Hedong decided to move Hedong Steel Product Market to a new site with better location and more convenient transportation systems, which had a trade value of 2.0 billion Yuan per year. Therefore, the government invested 420 million Yuan and constructed a new steel products trading center. The new center has 1,860 stalls, and is divided into three areas, including finished steel products, steel scraps, and waste machinery and electronic equipments.
The new steel products trading center will be a large metal materials distributing center in North China.

Jigang Group had a higher foreign exchange though the export volume declined(2008/8/18)

During the first six months, through improving the structure of products for export, increasing export volume of high technology and high value added, Jigang Group began to export ship plate, line pipe steel, high strength steel in large numbers, and forming a comparatively advantage, with the famous “Made-in-China” high strength plate exported to Europe and America. JIgang had an export volume of high strength plate higher any other companies in this industry, breaking the monopoly of leading iron and steel producers. During the first half, the company exported 525,000 tons of iron and steel products, and made a foreign exchange of 430 billion US Dollars, up by 9.6% though the volume downed by 30.1%.

Shagang, Hengchang Coal cooperate on coking plant(2008/8/15)

Hengchang Coal and Jiangsu Shagang agreed on June 23 to invest five billion yuan to build a three million t/y coking project in Linyi, Shandong in the next three years. The two-phase project will finally create a sales revenue of 10 billion yuan per year and a profit and tax of 1.5 billion yuan. Shagang will take a 40 percent stake in the project and Hengchang Coal will take 60% shares.

Jinan Steel obtains a net profit of 1.058 billion yuan in H1(2008/8/15)

Jinan Iron and Steel Co., Ltd. obtained an operating income of 22.208 billion yuan, up 42.34 percent year-to-year, an operating profit of 1.468 billion yuan, up 45.04 percent and a net profit of 1.058 billion yuan, up 57.86 percent with earnings per share of 0.78 yuan.

Nanchang Steel’s 22.5 million yuan coking plant(2008/8/14)

Changli Co., Ltd. announced to set up Xinchangnan Coking Co., Ltd. by investing 22.5 million yuan for 15% shares. The new project, costing 520 million yuan, is to build a 960,000 t/y greenfield coke oven in two years with an annual coke capacity of 1.1 million tons and gas of 220 million cubic meters.
Heze Zhongtai Coal Chemical Co., Ltd, another partner of the project, currently has a washed coal capacity of 1.2 million tons per year and will rise to 4.8 million tons by 2010.

Wisco had a net profit of 4.9 billion Yuan for the first half up by more than 30%(2008/8/13)

As one of the top three iron and steel companies in China, during the first six months, Wuhan Iron and Steel Company Ltd (Wisco) had a net profit of 37% higher from that of the same period in 2007, reaching 4.911 billion Yuan, though the rising prices for raw materials such as iron ore and coal giving great pressures. As the index for the profit of this industry, Wisco’s business performance report may set the basic tone for the iron and steel industry for the first half.
According to Wisco’s performance report for the first half of 2008, from Jan to June, the company produced 7.0390 million tons of iron, 7.2069 million tons of steel and 6.2999 million tons of steel products, increasing by 20.99%, 23.06%, 18.23% from a year ago respectively. Meanwhile, the company realized operating income 37.3 billion Yuan, profits 6.109 billion Yuan and net profit 4.911 billion Yuan (up by 36.53% from a year ago), and the profit per share came to 0.627 Yuan, and ROE (Rate of Return on Common Stockholders' Equity) came to 17.941%.
The increases in sale volume and product prices were the main driving forces for the sale income, according to Wisco. But due to the rising prices for raw materials and the increases in sale volume, the operation costs increased, and the gross profitability downed by 4.62 percent, to 20.99%.
Only two iron and steel companies released production and performance report for the first half, including Wisco. The other was Xining Special Steel. But, basing the reports, and estimated results from other 8 companies, the iron and steel companies have had a good result. Xining Special Steel had a profit of 99% higher from a year ago, and Tanggang and other 7 companies are estimated to have better results, with Bayi Iron and Steel to have a profit more than 200% higher, and the main reason for this was the increases in steel prices.

Pingxiang Steel’s sales revenue up in H1(2008/8/13)

During the first half of this year, Jiangxi Pingxiang Iron and Steel Co., Ltd. (Pingxiang Steel) achieved main business sales revenue of 107.6 billion yuan, up 79% year-to-year and profits and taxes of 8.6 billion yuan, up 341%.

Jisco produces 2.53 million tons of steel in H1(2008/8/12)

Jiuquan Iron and Steel Group (Jisco) produced 2.53 million tons of steel in the first half of 2008, up 2.54% year-to-year and achieved a gross industrial value of 13.8 billion yuan, up 45.25%. The group has invested 140 million yuan in building No.3 and 4 CDQ units for completion this September, which could recover 76 tons of medium pressure gas per hour and generate 20,000 kilowatt of electricity per hour. 55 million yuan have been spent as part of the 80-million-yuan worth heat storage update at medium plate plant’s heating furnace. The first heating furnace was commissioned from late July.
Besides, a heat storage update at its stainless HR plant’s heating furnace, costing 70 million yuan, will put on stream this November.

China Xining Special Steel reports 99% net profit surge in 1H(2008/8/12)

Chinese Xining Special Steel Co. Ltd., a major domestic iron and steel maker, reported on Saturday a 252 million yuan (36.7 million U.S. dollars) net profits in the first half, up 99.42 percent year-on-year.
The western Qinghai-based steel maker's business revenue topped 3.72 billion yuan, up 47.46 percent year on year, with earnings per share standing at 0.34 yuan.
The profit rise was mainly boosted by its production volume increase of main businesses. The company turned out 588,700 and 522,900 tonnes of steel and steel products respectively in the first half, up 5.55 percent and 8.12 percent respectively year on year.
The company produced 527,900 tonnes of iron concentrate in the Jan.-June period, up 168.19 percent year on year. It turned out 378,700 tonnes of coke in the first half, up 13.74 percent, compared to the same period last year.

Hanggang Group realized sale income of 35.476 billion Yuan during the first half (2008/8/12)

During the first half of 2008, Hanggang Group realized sale income 35.476 billion Yuan, including 10.188 billion Yuan from Banshan Iron and Steel base, while realized revenue 2.281 billion Yuan, including 1.082 billion Yuan Banshan Iron and Steel. As mentioned above, the company’s performance was in accord with the schedule.

Benxi Steel gets over-performance in July operations(2008/8/11)

Benxi Steel No.2 CR plant produced 141,334 tons of materials in July, an increase of 1,022 tons from planned target, with indicators such as average daily output and qualified ratio hitting new records. Its continuous annealing machine produced a record 79,403 tons despite a disruption occurred early this month. These materials have been used in high-end household apparatus manufactures such as Hisense, Haire and automakers like Beijing Hyundai.

Yonggang’s profit up 54.37% in first 7 months(2008/8/11)

From January to July, Yonggang Group got sales revenue of 17.051 billion yuan, up 31.42 percent year-to-year, profits and taxes of 1.766 billion yuan, up 47.19% and profits of 1.022 billion yuan, up 54.37%.

Baotou Steel’s recycling ratio of industrial water reaches 94 percent(2008/8/11)

Baotou Steel’s recycling ratio of industrial water reached a record 94 percent from January to July of this year. This achievement was obtained through setting up a water recycling system at blast furnace, enhancing the efficiency of cooling water for thermal power station, water supply, oxygen making, seamless pipe and steel making plants as well as widely introducing water-saving devices and FC timing-dominated controlling system.

Wugang realized profit 460 million Yuan during the first half(2008/8/6)

During the first six months of 2008, Wugang produced 1.58 million tons of steel, increasing by 63% from that of the same period in 2007; 1.275 million tons of plate and sheet products, up 71%; while realized pre tax sale income 8.606 billion Yuan, up 85%; and profit 460 million Yuan, and turned in tax 400 million Yuan.
Meanwhile, the company developed seven new products of high value added and high technology, and improved the products quality, and lowered the ratio of out-planned plate and sheet production, with that for the aged line down by 0.63%, and that for new line down by 2.5%. At the same time, the new line improved the quality of line pipe steel. The company deepened the project of making famous products with high quality, with module steel plate listed in the National Famous Products and plate for boiler, pressure vessels and high building structures having passed the test of High Quality Products.
The targets for the latter half of 2008 of the company include: producing 1.62 million tons of steel, and securing a total production of 3.20 million tons for the whole year; producing 1.21 million tons of steel plate and sheet, and securing a total of 2.48 million tons; realizing sale income of more than 8.0 billion Yuan, and securing a total of 16.0 billion Yuan; realizing profit 450 million Yuan and securing a total of 900 million Yuan; virtually completed phase two of new wire production line project; and so on.

Shagang, Yangquan Coal ink cooperative deal(2008/8/6)

Jiangsu Shagang Group and Shanxi Yangquan Coal Group held a signing ceremony on July 28 to set up Yangquan Coal Group Shagang Energy Investment Co., Ltd. The new company will engage in mining on coking coal, anthracite and other nature resources, acquiring local coalmines and related assets as well as taking part in the management and operations of these mines.
Shagang, as China’s largest non-governmental steelmaker, edged into top 3 largest mills in China, ranked 8th worldwide and became one of the most competitive mills in the world in 2007.Yangquan Coal Group is one of the 13 large coal bases planned by the state, a major part of the coal base in East Shanxi, one of the first 19 coalmines planed by the state, ranked 206th among China’s top 500 firms and 10th among top 100 coal producers in the country.
The cooperation this time will help both companies fix either end-use market or upstream resource and further enhance their core competitiveness.

Baosteel realized profit 28.664 billion Yuan during the first half (2008/8/5)

Last August, Baosteel made a new round development strategy (2007 to 2012 Development Plan). According to the plan, Baosteel targets at expanding the capacity to 80 million tons and lifting the competing ability of iron and steel business to top three of the world and being listed in the top 200 companies around the world.
Having solved various problems, Baosteel secures a smooth operation of the first COREX furnace in China, which launched production at the end of 2007; after ten years effort, oriented silicon steel facitlity had the first batch of qualified products. Guangdong Iron and Steel Group Company Ltd, in which Baosteel takes a stake of 80%, was established on 28th June 2008, and the group will be responsible for the construction of Zhanjiang iron and steel base, which began the preparation work.
During the first half of 2008, Baosteel produced steel 15.0248 million tons, increasing by 5.6% from that of the same period in 2007; realized consolidated sale income of 128.058 billion Yuan, up by 16.8 from a year ago; profit 28.664 billion Yuan, up 28.5%.

Changgang Ruiqi high-speed wire rod project moving on smoothly(2008/8/4)

Now Ruiqi high-speed wire rod project of Changgang is moving on smoothly. The 5-meter platform for heating furnace, finish rolling and finishing has finished, and the body of the heating furnace is under construction, the steel structure of crane beam is under construction. The project is moving on smoothly in accord with the schedule.

Construction of Yanbao Steel Pipe project starts in Shandong(2008/7/31)

Baosteel Pipe Co., Ltd. in Yantai city, Shandong held a groundbreaking ceremony for its high-grade oil (gas) pipe and boiler pipe production line at the New and High-Tech Industry Zone in Fushan district, Yantai on the afternoon of July 23.
The project, due to launch operation on June 29, 2010, aims to produce 600,000 t/y of 177.8-457mm finished seamless pipes featuring a large diameter, corrosion and high-pressure resistant and high-alloy contained property.
Shanghai Wuye won tenders of the project’s two sections including main workshops, continuous hot rolled pipe mill, heat treatment production line, pipe processing line, boiler pipe refining line, general pipe refining line, plain pipeline, coupling processing room, public and assistant infrastructure, buildings and housings.

Fosun plans to construct a 10 million tons iron and steel base in Lianyungang Port(2008/7/31)

According to Fosun Group, the group plans to construct a 10 million tons iron and steel base in Lianyungang Port, and now the group is under the consultation for the first phase with a capacity of 4.00 million tons.
If gaining approval from the National Development and Reform Commission (NDRC), the iron and steel capacity in Lianyungang Port may reach 20 million tons, as all large steel producers in Jiangsu Province plan to construct new plants there. Nanjing Iron and Steel Company (NISCO) of Fosun Group is considering constructing an iron and steel project with a capacity of 10 million tons at most.
Now NISCO has a crude steel capacity of 6.50 million tons per year. The company hopes to construct a medium plate production line and therefore to expand the capacity to 8.00 million tons. If the Lianyungang Port project gains approval, the company will construct the line and other facilities with a capacity of 2.50 million tons there. In Feb 2008, the company signed frame agreements of cooperation, beginning the work of the iron and steel project.
As a port city, Lianyungang is in accord with national policies that the new capacity should near the sea line. The Industrial Zone projected by Jiangsu Province for the iron and steel projects is located in Xuxu Development Zone, which has a scale of 20 million tons at most. Shagang, Huaxi Iron and Steel also plan to expand the capacity.
Meanwhile, Lianyungang Port is planning a 250,000 tons iron ore port, which will be operational in 2009.
Fosun has stakes in several iron and steel companies, including NISCO, Jianlong Iron and Steel and Ningbo Iron and Steel and so on. Among those, NISCO has a capacity of 6.00 million tons, and with 5 to 6 plants in Hebei Province and Northeast China, Jianlong Iron and Steel invested by Fosun now has a capacity of more than 20 million tons. In this connection, Fosun now focuses on the reform and expansion of iron and steel companies.
In June 2008, Fosun purchased 47.5% of stakes in Tianjin Iron and Steel with a price of 3.8 billion Yuan, and became the second largest shareholder of the company. It is said that Fosun is talking with Hangzhou Iron and Steel and Qingdao Iron and Steel, with a production of 4.00 million tons per year and 3.00 million tons per year respectively, but now there is no progress.

Ansteel benefits from costs saving(2008/7/30)

Ansteel created a benefit of 106.62 million yuan from energy saving and emission reduction efforts during the first half of this year despite of great challenges such as a nationwide transportation tension, lack of electricity supply and soaring prices of iron ore, coal, transportation and oil. During the first half, the group hit records in 10 indicators such as charged coke ratio, comprehensive energy consumption per ton and fresh water consumption per ton. Meanwhile, it promoted nearly 400 technologies innovation and spread more than 180 advanced achievements related to energy conservation and emission reduction.

Jigang Group had a better result of production and performance for the first half(2008/7/30)

During the first six months of 2008, Jigang Group produced 5.974 million tons of steel, 5.519 million tons of iron and 6.013 million tons of steel products, while realized sale income 26.91 billion Yuan, revenue 3.46 billion Yuan, and profit 1.85 billion Yuan. Due to the influence of washing out the outdated iron and steel capacities, the production of steel and steel products were a little lower from those of the same period in 2007, but the sale income, revenue and profit increased by 9.97%, 17.1% and 16.3% respectively from a year ago. Meanwhile, the group exported iron and steel products of 525,200 tons from Jan to June, and made a foreign exchange of 430 million US dollars. Though the export volume down by 26% from that of corresponding period in 2007, the foreign exchanges were up by 15.6% with the same comparison.

Shagang Group realized sale income 69.7 billion yuan during the first six months(2008/7/29)

During the first six months of 2008, Jiangsu Shagang Group realized sale income 69.7 billion yuan and revenue 9.83 billion yuan, both increasing by more than 26% from those of the same period in 2007. Through developing new technologies and products innovation, Shagang managed to continuously improve the product mix, and further the energy saving and emission decreasing, and expand the market, therefore got a better result of production and performance for the first six months.
During the first half of 2008, the company developed 9 products, with high technology and high value-added of four types steel, including line pipe steel, high strength low alloy structure steel, boiler steel and construction steel for high buildings.
From Jan to June, Shagang exported 1.16 million tons of high grade wire rod, hot rolled sheet and wide plate and so on, making a foreign exchange of 870 million US dollars, increasing by 50% plus from that of the same period in 2007, contributing a profit of 350 million yuan.
Meanwhile, Shagang made profits through resources recycling, including generating electricity 1.1 billion KWH through reclaiming gas from blast furnaces, converters and coking furnaces, and made a profit of 140 million yuan from slag, and made a profit of 330 million yuan from the sale of byproducts of coke
By introducing new technologies, Shagang saved energy amounting 147,500 tons of standard coal. The profit from recycling economy has taken a ratio of more than 20%, becoming a new force to the development of Shagang.

Jinan Steel marks 50th anniversary(2008/7/29)

Jinan Steel commemorated its 50th anniversary on July 1. During the past 5 decades, the mill had produced 86 million tons of steel, 83.41 million tons of pig iron, 72.57 million tons of steel products, achieved sales revenue of 263.2 billion yuan, profit and tax of 30.2 billion yuan, profit of 15.1 billion yuan and contributed a 31.9 billion yuan-worth wealth to the country, including 19.3 billion yuan of profit and tax and 12.6 billion yuan of added value in the state-owned assets. The mill has now edged into China’s top 10 largest steelmakers with an annual capacit