Chongqing-based Chinese steelmaker Chongqing Iron and Steel Co., Ltd. (Chongqing Steel) has stated that it has inked a service and supply agreement with major Chinese steelmaker Baowu Group. Accordingly, Chongqing Steel will supply services and materials to Baowu Group from January 1, 2024, to December 31, 2026, with a total contract value of RMB 30.1 billion ($4.2 billion), while Baowu Group will provide services and materials, with a total contract value of RMB 102.33 billion ($14.3 billion) to Chongqing Steel.
In 2020, Baowu Group became the actual controller of Chongqing Steel, after which the two sides inked service and supply contracts three times, in 2020, 2021 and 2022. In 2021, Chongqing Steel’s annual crude steel production capacity exceeded 10 million mt.
According to the latest contract, Chongqing Steel will supply materials, including water, electricity, billet, finished steel, pig iron, solid waste and iron ore, and also services, including processing, quality control and technical consultation, to China Baowu Group.
