Zhu Jimin, chairman of Chinese steel producer Shougang Group, stated on May 9 that its project for the relocation of its steelmaking facilities to the Caofeidian coastal district near Beijing has been progressing smoothly and that the designed annual crude steel capacity of 9.7 million mt is expected to be achieved by the end of 2010. Currently, production operations have commenced at one blast furnace and one converter at the Caofeidian facilities; however, by the end of this year production will running at two blast furnaces and five converters. Meanwhile, other capacities such as for cold rolled sheet and galvanized are expected to start production at Caofeidian by the end of 2012.
Meanwhile, Mr. Zhu added that the uncertainties of domestic steel producers regarding profitability have been increasing due to the changes in the iron ore pricing system.