Chinese mills produced 40.31 million mt of crude steel in April 2007. The top five mills of the country produced approximately 8.5 million mt (21 percent) of this figure. Meanwhile, the top 71 mills accounted for 30.68 million mt (76.1 percent) of total output.
In April 2007, total crude steel production increased 16.5 percent from 34.6 million mt in April 2006. Meanwhile, the output of the five largest mills (Baosteel Group, Anshan New Steel Group, Tangshan Iron & Steel Group Co Ltd, Wuhan Iron & Steel Group, and Jiangsu Shagang Group Co Ltd) increased by 10.5 percent from 7.59 million mt in April 2006. This figure accounted for 21.9 percent of total production. Meanwhile, the largest 71 mills had produced 27.28 million mt of crude steel in April 2006, accounting for 78.8 percent of the total.
With regard to finished steel, the biggest 71 mills in China produced 28.60 million mt (61.8 percent) of the total output of 46.27 milion mt in April 2007. The five largest mills produced 7.79 million mt of this figure, accounting for 16.8 percent of total output. In April 2006, the 71 largest mills had produced 31.85 million mt of finished steel, accounting for 83.22 percent of the total output of 38.27 million mt.
The figures indicate that the Chinese government's policy to shut down small-scale mills did not cause a reduction in the share of small mills in total output. However, it is understood that the mode of operation of the small mills is changing. Before, they used to produce more pig iron and semi-finished steel products, but now they are investing in steel rolling mills instead of iron production.