Chen Derong, president of major Chinese steelmaker China Baowu Group, stated that Baowu Group produced 96 million mt of crude steel in 2019, following the restructuring of Anhui Province-based Maanshan Iron and Steel Group (Masteel), which was taken over by Baowu in mid-2019, and also realizing de facto control of Chonqing-based Chongqing Iron and Steel. As a result, Baowu Group is expected to be named the biggest steelmaker in the world after all other steel giants announce their results for 2019. This will prove the efficacy of the Chinese government's aim to boost consolidation process in the country’s steel industry.
Mr. Chen also stated that Baowu Group’s crude steel output will exceed 100 million mt in the future.
In 2018, Baowu Group produced 67.43 million mt of crude steel, Masteel’s output was 19.60 million mt, while Chongqing Steel produced 6.38 million mt. In total, the figure is 93.41 million mt of steel, which means that the actual production increase at Baowu assets was less than three percent in 2019 and the company’s focus was mainly on the consolidation process and the establishment of efficient working of all its new integrated subsidiaries.
The major rival of Baowu by production volumes - ArcelorMittal - has not announced results for 2019 yet. Its crude steel production was 70.1 million mt over the first three quarters and if it produces the same volume in the fourth quarter as in the third quarter its annual output will reach 92.3 million mt, about four percent below the result of Baowu. It is unlikely that ArcelorMittal will post much higher production in the fourth quarter, taking into account its problems with its Italian subsidiary.