China Baowu Group Eying 150 Million Tonne Capacity
According to recent media reports world’s largest steel producer China's Baowu Steel Group, after acquiring 90% of the shares of Kunming Iron & Steel having
According to recent media reports world’s largest steel producer China's Baowu Steel Group, after acquiring 90% of the shares of Kunming Iron & Steel having about 8 million tonne steel capacity, is in discussion to acquire Shandong Province based Shandong Iron & Steel Group with capacity of about 30 million tonnes per year in its quest to increase in its steelmaking capacity to about 150 million tonnes per year. Shandong Iron and Steel Group has produced 29.05 million tonnes of pig iron, 31.11 million tonnes of crude steel and 30.90 million tonnes of finished steel in 2020, up 11.0%, 12.8% & 15.9% YoY respectively
Baowu was formed through a merger between Baosteel and Wuhan Iron & Steel in 2016. It then went on to merge with Anhui Province based Maanshan Iron & Steel Co, Shanxi Province based Tisco Industrial Co in August 2020, Chongqing Iron & Steel Co in September 2020 and Xinxing Ductile Iron Pipes and Xinjiang Yili Steel in November 2020 to reach capacity of 115 million tonnes in September 2020.
China's proposed five year roadmap for its steel industry calls for further market consolidation so that the five largest companies account for 40%and its 10 largest companies account for 60% of total steel output.