Chinese steelmakers court Russian suppliers
As
Chinas remarkable growth continues, several steelmakers have begun to turn to
Russia as an alternative source of raw materials.
Shagang Group recently imported a 73000 ton shipment of
iron ore pellets from
Russia. Due to draft depth limitations at Zhangjiagang port, 26000 tons was first unloaded at Zhoushan port. When the remaining shipment reaches Zhangjiagang, it will mark the first time Russian pellet has been discharged at the port.
Jiangsu
Shagang, one of
Chinas largest private-funded steel enterprises, recently undertook productivity expansions. The company now has an annual
iron ore demand of 10 million tons, most of which will have to be satisfied via imports.
Shagang used to import
iron ore from
Brazil and
Australia. However, after the 71.5%
iron ore price surge from
Brazils CVRD and
Australias Harmersley in 2005, it is much cheaper to import
iron ore from
Russia.
Jiangsu Lifeng imports 14000 tons of Russian scrap
On Mar 23, 2005, the "Zolotaya Lolyma" liner with 14150 tons of
scrap from
Russia arrived at Zhangjiagang port. The cargo was destined for Jiangsu Lifeng International Group Co., which imported
scrap from
Russia for the first time.