China in struggle of securing raw material supply
World's largest steel producer
China is reportedly looking for ways to secure its raw material supply.
Accordingly, Chinese producers are trying to conclude deals with foreign suppliers to secure stable supply of scarcely found raw materials, such as
iron ore and nickel, which are used in making carbon steel and
stainless steel respectively.
Again with the same aim, certain Chinese producers are establishing new mills in countries like
Brazil where they will be able to supply raw materials for their mills, the products of which will be shipped back to
China. Moreover,
China is conducting feasibility studies on certain mines overseas.
On the other hand,
China wants to expand its steel business in
Australia and
South America. As previously reported by SteelOrbis, in
Australia, four Chinese mills, namely Wuhan Iron and Steel Corp, Maanshan Iron and Steel Company Ltd, Jiangsu
Shagang Group Co Ltd and Tangshan Iron and Steel Co Ltd have already reached an agreement with
BHP Billiton to provide 12 million tons of ore annually for the next 25 years for $9 billion.