As China’s economy slows and mortgage boycotts erode property sector profits, steel mills are struggling to remain profitable. Camasteel offers regular purchasing opportunities for top-tier Chinese steel.
Market sources anticipate consolidation among China’s steelmakers to accelerate in the coming months. Private Rizhao Iron & Steel recently acquired Yingkou Medium Plate Co, increasing their size to become China’s ninth largest steelmaker by 2020.
1. Tianjin Tiangang Steel Group
Tiangang Steel Group operates an integrated steel plant in Tianjin, China with an annual capacity of over 5 million tons. They produce bars, rolled products, wire rods, plates and sheets as well as pipes which are used for construction, transportation and machinery applications. Furthermore, Tiangang offers processing services to other businesses as well.
Baosteel is China’s largest iron and steel complex and one of the world’s leading producers. Established in 1958, this top-class enterprise boasts decades of innovation and development; boasting reputation, talent, management expertise and technology as top priorities; its products are mostly exported globally – earning over $17 billion in revenues in 2010 while employing 75,000 people.
Xinyu Iron & Steel Group is a large-scale state owned enterprise. With total assets totaling 9.5 billion Yuan and annual production of 5 million tons of pig iron and 5.36 million tons of steel products respectively. Additionally, their subsidiary Xinyu Iron & Metals Company was recently recognized by their national credit rating bureau as being in Super Credit Standing status.
In 2004, Beijing demonstrated its resolve to reduce steel sector overcapacity through a bold show of force by intervening to halt construction of a massive steel plant by Tieben in Jiangsu province. This action demonstrated how deeply committed Beijing was to curbing overcapacity.
Fosun International of Shanghai recently announced an investment deal to acquire 47.5 per cent stake of Tianjin Steel for 3.8 billion yuan, injecting 560 million in cash and investing in production lines worth an additional 320 million yuan.
Currently, the company operates three blast furnaces, with an approximate combined capacity of three million tonnes, but will close two when new furnaces under construction become ready for operation. Reasons given for decreased steel demand include environmental concerns and rising energy costs.
2. Jianlong Iron & Steel Group
Jianlong Iron and Steel Group is one of China’s 46 largest iron and steel enterprises, operating primarily through production, trading, value-added services to customers, quality improvements and reduced energy usage; development of innovative technologies; use in automobile, construction and aerospace industries as well as expanding business into oil & gas; as a leader.
Jianlong Iron and Steel Group currently ranks as China’s second-largest steel producer, boasting several subsidiaries across China that manufacture an array of steel products including bars and rods, seamless/welded pipes, plate/sheet material and other steel products. Furthermore, its subsidiaries provide value added services including steel processing/trading/logistics.
Jianlong Steel Group made headlines in 2009 for their plans to takeover state-owned Tonghua Steel and increase production capacity, but workers at Tonghua staged a strike over this plan and it ultimately fell through. Jianlong then acquired troubled Shanxi Haixin Iron and Steel before restarting steel production at this once nation-leading plant in 2016.
Baosteel is one of the world’s largest and most modernized iron and steel complexes, recognized for its comprehensive advantages in reputation, talents, innovation, management and technology. Recognized for its premier production techniques involving primary steel production as well as mining/concentrating/iron ore/steelmaking/rolling operations and steel rolling services; Baosteel stands out among competitors as an extremely cost-competitive steel producer in terms of both primary production as well as primary/iron ore production/mine/concentrate/steelmaking/rolling operation – all known for being part of its comprehensive advantage in reputation /reputations/talent/innovation/management/technology advantages over competitors; recognized for being most competitively in steel production terms of reputation/reputation/talent innovation/management/technology; known for comprehensive advantages across reputation/talent innovation/management/technology; reputation/innovation/management/technology; management technology advances into most competitive steel producer globally! A leading enterprise for primary steel production as well as being mine/concentrating/iron ore production/making/rolling steel rolling operations!
Jianlong Steel Group has made significant investments into their operations as part of their efforts to become global leaders in the steel industry. Jianlong’s latest move involves purchasing a steel mill in Qingdao in northern China as part of this ambition, and working closely with Lenovo ThinkSystem servers powered by third generation Intel(r) Xeon(r) Scalable processors to achieve this goal.
3. Chongqing Iron & Steel (Group) Company Limited
Chongqing Iron & Steel (Group) Company Limited operates as an iron and steel manufacturing state-owned enterprise. The Company produces steel products, by-products and chemical products. It operates its business through two subsidiaries – Handan Iron & Steel Co. Ltd and Jianlong Iron & Steel Group Co. Ltd – while also providing industrial gas services, automation maintenance & operation and cargo transportation. Products manufactured here are distributed both domestically and internationally.
This company’s headquarters are in Fengtai District in Beijing, China. Their main businesses include ore mining, iron ore beneficiation, sintering and coking to produce iron and steel making processes which continue casting rolling and related utility services; also included are cement chemical construction services as well as high quality rolled steel used for autos, household electric appliances building construction oil country tubular goods bearing steel production.
Yonggang Iron & Steel is an integrated steel company with annual steel making and rolling production totaling 5 million tons and 10 billion Yuan, respectively. As of 2006, they had joined Fortune Global 500 companies and placed at #96 among Top 500 enterprises of China’s steel industry in terms of asset value with sales income reaching 2 billion Yuan per annum.
At its ten production lines with an annual output of 8 million tonnes, China Steel offers an array of products. These include rebar, cold-rolled and hot-rolled steels, wire rods, bar materials, billets and billets – which find extensive use across engineering machinery, bridges, mine equipment, automobiles/motorbikes/bicycles/scooters/scooter-cycles as well as steel structure plants/shipbuilding projects as well as heat exchangers/separators/storage devices among others.
The Company’s production capacities are anchored in two blast furnaces and one basic oxygen furnace. Other operating units of note include a special purpose steel mill, mini mill and coke plant – products from which are exported primarily to Japan, Korea and Europe.
Baowu Steel’s acquisition of Magang by Baowu Steel increased Magang’s capacity to 90 million tons, approaching ArcelorMittal’s total capacity of 113 million tons – drawing it ever closer to becoming one of China’s leading steelmakers. Situated in Zhangjiagang City along the Yangtze River in eastern Anhui Province, Magang boasts excellent transportation access including highway and high-speed railway links.
4. Hesteel Group
Hesteel Group Company Limited operates as an iron and steel manufacturing conglomerate, producing bars, wires, profiles, strips, hot-rolled coils with pickling coils for pickling coils of cold-rolled coils, galvanized color-coated coils and medium width and thick plates used across several industries such as automotive, petroleum, railway, bridge construction, electricity transportation as well as light industrial industries. Hesteel serves customers worldwide from its headquarters located in Shijiazhuang City of Hebei Province China.
Hesteel Group bought Smederevo Steelworks in Serbia and formed HBIS Serbia to take control. Production and sales increased dramatically within a year, taking profitability back within reach. Unfortunately for EUROFER, this development led to accusations that HBIS was using their controlling stake in Hesteel to price-dump its steel into Europe.
Hesteel Group owns numerous subsidiaries, such as Tangsteel, Xuanhua, Hebei Iron and Steel (Group), Hebei Iron and Steel, Hesteel Mining Co and Palabora Mining Co. In 2017, Hesteel Group revealed plans to raise $1.2 billion via private placements while purchasing Rio’s Palabora Copper from Rio Tinto and merging with Shougang Steel.
Hesteel Group stands out among Chinese steel companies due to its relatively recent entry onto international markets. Its subsidiaries and joint ventures are relatively modest in scale; international operations tend to focus on countries with lower labor costs; nevertheless, its international footprint continues to expand.
Hesteel Rebar’s Rebar Business has recently gained widespread interest due to its higher margins. It offers products with diverse applications and has competitive pricing with other premium producers. Recently, Hesteel’s prices have been increasing, with plans underway for further increases soon – this could have an adverse effect on short term sales; however, Hesteel hopes to capitalize on growing demand in America through opening an additional plant there; this will mark its inaugural presence there as an rebar producer.