Although leading Chinese steelmaker Baosteel is still awaiting official government approval for its steel project in Zhanjiang which will have a capacity of more than 10 million mt, preparation of the raw materials supply for this project is well underway.
In recent days Zhanjiang Longteng Logistics has successfully carried out a hot run test of its pellet project, which holds the largest pellet production line in China and will supply raw materials to the future Zhanjiang steel project. Baosteel, Shaoguan Steel, and Zhanjiang Port Group hold respective 72 percent, 20 percent and eight percent stakes in the pellet project.
Built on the back of a total investment of RMB 3.2 billion, Zhanjiang Longteng Logistics foresees an annual pellet production capacity of five million mt.