CISA: China's steel industry distribution transform to coastal bases

Posted in: , on 23. May. 2008 - 11:58

May 23 MetalBiz¡ªOn May 22, chairman of China Iron and Steel Association (CISA) said in the 2th China Steel Making Raw Materials and Steel Products Conference, in 2008, the gradual production of Ansteel Yingkou Bayuquan Project, Caofeidian Project and the opening of Guangxi Fangchenggang Project and Guangdong Zhanjiang Project suggest the large transformation of China steel industry from resources pattern to the coastal bases.

Two coastal steel bases put into production in H2

Zhang Xiaogang said, at the beginning of the new country, the distribution of China¡¯s steel industry depended on the domestic resources and iron ore. It was not only scattered but also far from the market. At present, the distribution starts to change and the steel mills transfer to coastal ports and regions close to the markets.

In 2008, two coastal steel bases will be put into production in North China, including Ansteel Yingkou Bayuquan Project with 5 million tons capacity and the Caofeidian Shougang Jingtang Steel plant with 4.85 million tons of capacity.

Besides, the National Development and Reform Commission agreed the prophase work of two costal steel bases in the South, they are, Guangxi Fangchenggang (WISCO and Liugang) and Guangdong Zhanjiang (Baosteel, Guanggang and Shaogang). Shandong Iron and Steel Group (Jigang and Laigang) was established in March and it proposed to establish a ten million tons of coastal steel base in Rizhao.

Tanggang reveals coastal strategic distribution plan

On May 22, chairman of Tanggang Group Wang Tianyi said, the company plans to establish a steel production pattern based on the Caofeidian Refined Plate and Jingtang Shipbuild Steel with high quality bases.

In anggang¡¯s plans, first, to build in the 1# project of Caofeidian with Shougang a 9.7 million-ton of refined plate production line and part of the project will be put into production by October 18, 2008, and the project finish by 2010. Second, eliminate obsolete capacity and establish a high-quality shipbuilding steel base. Third, accelerate the exploration of iron ore and the company plans to achieve the goal of producing 5.2 million tons of iron fines by the end of ¡°Eleven Five-Year¡± and 10 million tons during ¡°Twelfth Five-Year¡±. Fourth, boost the development of the 2# project of Caofidian project cooperating with Tanggang¡¯s whole removal.

Wang Tianyi said, by 2010, the company could achieve the goal of 30 million tons every year. In 2007, the company produced 22.75 million tons of steel and the output of this year may reach 25-26 million tons.

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