According to Mr Yu Ziquan Chairman of Shaoguan Steel Group that Zhanjiang steel production base project should be further and quickly approved by the government which is in favor of adjusting the imbalance of Guangdong industry structure.

Zhanjiang steel base project aims to eliminate backward capacity of 15 million tonnes in Guangdong province in exchange of building a new steel production base with an annual output capacity of 5 million tonnes in Zhanjiang.

Ms Li Miaojuan Director with Guangdong Development and Reform Commission has said that Guangdong annual steel consumption volume is nearly 50 million tonnes while only 20 million tonnes including some low grade finished steel can be supplied by local mills in Guangdong province, which marks the awkward fact that above half of finished steel consumption have to be offered by other provinces.

She also added that Guangdong is a province with huge steel consumption for home appliances, cars, shipbuilding equipments. The currently existing situation is unreasonable. Most of iron ore is basically dependent on overseas import and its transportation requires to be passed through the South China Sea to produce in the Northern cities and then carry back to Guangdong. The extra costs rise in the process of transportation has to be transferred to the costs of Guangdong’s whole manufacturing industry.

In view of the swift and efficient development of Guangdong, meeting the demand of the industries like construction, cars, shipbuilding, home appliances, petroleum, chemical industry, machine building in Guangdong and dealing with the local imbalance between steel demand and supply, the construction of a large steel production base in Guangdong is extremely necessary.

(Sourced from MySteel.net)
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