Restructuring changes steelmakers ranks in China
SteelOrbis Shanghai
Strengthening of restructuring works in
China after the release of the new steel industry policy in July 2005 greatly influenced the rank of Chinese steel mills.
According to the statistics from
China's Iron and Steel Association (CISA),
Baosteel Group still ranks first with its 22.7258 million metric tons of crude steel. Tangshan Steel ranks second after
Baosteel with its 16.0781 million metric tons of crude steel, up five steps compared to last year. There are eight steel mills whose annual capacity exceeds 10 million metric tons among top ten.
The top ten steel mills are as follows:
Baosteel Group (crude steel output up 6.14 percent year on year at 22.7258 million metric tons), Tangshan Group (crude steel output up 22.63 percent at 16.0781 million metric tons) Wuhan Group (up 15.31 percent to 13.0446 million metric tons),
Angang (up 5.01 percent at 11.9016 million metric tons),
Shagang (up 38.47 at 10.4595 million metric tons), Shougang (up 23.23 percent at 10.4412 million metric tons), Jinan Steel Group (up 51.76 percent at 10.4247 million metric tons),
Laiwu Steel Group (up 57.01 percent at 10.3363 million metric tons), Masteel Group (up 20.11 percent at 9.6464 million metric tons), VALIN Group (up 18.59 percent at 8.4541 million metric tons).
Tangshan Steel ranked sixth in 2004, while its ranking surged after the restructuring with Xuanhua Steel and Chengde Steel. Wuhan Steel remained the third position after merger with Egang. The ranking of
Angang went down after merger with Benxi Steel. Thanks to its operation of 6.5- million- metric ton HR
production line,
Shagang's ranks fifth. Though Shougang's development restrained in Beijing, it will keep to be a competitive steel mills thanks to its new plant in Cao Feidian with advanced equipments. Shougang's Qing Huangdao and Qian An plants saw rapid
production in 2005, especially its crude steel output kept a rapid increase. The increase range of crude steel output of Shandong Province-based Jinan Steel and
Laiwu Steel was more than 50 percent.
Laiwu is one of the top ten steelmakers, ranking 8th from the previous year's 11th, while Jinan Steel ranking itself 7th. Masteel's rank fell from 5 to 9, as some sections of its new plant will not be in operation until 2007. VALIN Group's position fell to 10th from 8th. Handan Steel ranked 11th. This is because it failed to merger with Shi Jiazhuang Steel and Xingtai Steel, as Shi Jiazhuang Steel was purchased by CITIC PACIFIC as well as Xingtai Steel's desire to listed in Hongkong. Moreover, according to the latest news from the National Development and Reform, Handan Steel will improve its competitiveness through restructuring. It will eliminate its 2-million- metric ton outdated capacity and work on the 4.6- million- metric ton flat rolled projects.
The increase range of Liaoning Province based Yingkou medium
plate producer ranked first in terms of its crude steel output. Yingkou's crude steel output was up 183.18 percent to 1.5473 million metric tons. The following companies are among top ten: Zhongtian Iron and Steel Company in Changzhou, Jiangsu Province (its crude steel output was up 95.32 percent at 2.0165 million metric tons). The crude steel output of Longmen Iron and Steel Group Company in Shaanxi was up 65.42 percent at 2.015 million metric tons; that of Dazhou Iron and Steel Group Company in Sichuan was up 62.79 percent at 1.3033 million metric tons; that of Beitai Iron and Steel Company was up 60.11 percent at 4.5531 million metric tons; that of
Laiwu Iron and Steel Company in Shandong was up 57.01 percent at 10.3363 million metric tons; that of Jiuquan Steel in Gansu was up 52.64 percent at 5.6528 million metric tons; that of Jinan Steel was up 51.76 percent at 10.4247 million metric tons; that of Jiangsu Yonggang was up 49.36 percent at 1.9358 million metric tons; that of Guangxi-based Liuzhou Steel was up 46.84 percent at 4.5522 million metric tons and that of Jiangxi-based Pingxiang Steel was up 39.86 percent at 3.3696 million metric tons.
The East
China region saw the largest output and increase range, in where five of the top ten steel mills locates. The northwestern regions should also be paid close attention. The Chinese government creates many opportunities for the development of steel mills in this region. For example, Jiuquan Steel and Kunming Steel and Bayi Steel experienced rapid growth. The North
China, a major steel producing area, did not do well in 2005 with an exception of Tianjin Steel
Pipe Company.
2005 is the turning point for
China's iron and steel industry with rapid expansion of capacity and sharp fall in prices. In 2006, the iron and steel industry will focus more on restructuring of steel mills and more and more large steel mills will come up.