China’s steel companies are facing difficult circumstances. The real-estate crisis has rapidly escalated, impacting developers and banks and forcing Beijing to scale back growth ambitions.
Building new plants may cost the same as cutting costs, and investing in heavy industry might tie up resources that might not show an immediate return.
1. Hunan Sanming Steel
Hunan Sanming Steel Company stands as one of China’s foremost producers of steel. Producing stainless steel, special steel and cast iron products as well as providing processing services. Their products are widely used for construction projects, machinery manufacturing operations, aviation operations and energy production – with annual output reaching 1.44 million tons!
One of China’s premier iron and steel enterprises, it boasts many honorary titles like “Top Ten Enterprises in China” and “China’s Top Brand”. Comprised of an integrated industrial chain encompassing mining, steel production, processing, distribution and trade activities; product offerings include hot-rolled silicon steel coil/plate and cold-rolled carbon steel coil/plate; total sales in 2006 totalled approximately 51.8 billion Yuan.
This company is one of the largest steel production and processing conglomerates in South and Southwest China and an established world-class steel enterprise. Their main products are stainless steel strips, cold-rolled steel sheet (coil), hot-rolled carbon steel strip and wheel axle steel; furthermore they also provide processing, repairing and installation services as well as advanced technology, equipment and facilities with professional management teams available at all times.
China’s steel sector is entering an uncertain new era as demand from property collapse continues to shrink and Beijing defers providing infrastructure spending and financial stimulus that revived it after the global financial crisis. Prices for construction steel such as rebar for strengthening concrete have plummeted two years lows, putting it on track towards imminent bankruptcy; Hebei Jingye Steel founder warned at a private company meeting held this June that their sector might go bust and needs financial help to survive.
China Baowu Steel Group has invested heavily in its production capacity to meet Asia’s rising steel demand, operating three major plants at Baoding and Wuhan with combined production capacities exceeding 1 billion tonnes. Furthermore, this organization boasts an extensive distribution and logistics system throughout China as a key supplier to the country’s construction sector.
2. Fujian Sanming Steel
Fujian Sanming Steel has established itself in the region as an outstanding provider of quality products and exceptional after-sale service, winning multiple awards including National Quality Golden Medal and Gear National Quality Award for flat spring steel, plastic die steel, bearing steel, gear steel and gear bearing steel respectively. Their products can be found everywhere from construction projects, machine tools, mining operations to electronics industries – making Fujian Sanming Steel one of the 520 State Owned Enterprises supported by government that have earned this title and honor of Labor Day Diploma.
This company produces various steel products, such as welded pipe, profile steel, hot-rolled and cold-rolled sheet, steel billets and hot-rolled strip. Their products are distributed throughout domestic market with Fujian Province being their main market. Furthermore, metal deep processing services, coal and coke manufacturing as well as import/export trading services are offered; their annual output of steel making and rolling exceeds 5 million tons!
In 2022, Fujian Famous Brand Company received the award of “Fujian Famous Brand.” They have also won many awards for quality and technological advances; most notably for their rolled steel plate being chosen by customers as the best in the world! Furthermore, this quality certification of ISO 9001:2000 reinforces this assurance of product excellence from Fujian Famous Brand Company.
Chinese steel producers are taking steps to modernize their production processes by switching away from coal-powered blast furnaces in favor of electric arc furnaces (EAF). EAF utilize renewable electricity sources and high-grade steel scrap instead of expensive iron ore that may be scarcely available, in turn increasing efficiency and production capacity while simultaneously decreasing fossil fuel usage. This transition should lead to greater savings while decreasing fossil fuel dependence.
According to data provided by Platts, China’s top 10 steelmakers now account for roughly 42% of total crude steel production – an increase from 29 percent in 2009. This increase can be partially attributed to mergers and acquisitions; for instance HEBEI Iron and Steel acquired Shenyang Steel to boost capacity and strengthen negotiations with raw material suppliers as well as develop green hydrogen-based processes of producing steel production.
3. China Baowu Steel Group
China Baowu Steel Group, or Baosteel Group formerly Wuhan Steel, was formed through the merger of both firms in 2016. Headquartered at Pudong’s Baosteel Tower in Shanghai, they produce hot-rolled and cold-rolled steel products such as coil, wire rods and flat steel sheets; offer processing services and engineering technical service, manufacture metallurgical equipment as well as conduct scientific research.
China Baowu is dedicated to the pursuit of high-quality steel manufacturing, green development, and intelligent production. Its core businesses include mineral resources development, trade & logistics services, engineering project & science & technology services, equipment manufacturing services for both the steel industry as well as emerging sectors. China Baowu boasts an international business network with the vision and mission of “becoming a world-class steel enterprise” while simultaneously “creating an ecosystem for quality steel products together”.
Additionally, the company invests in foreign projects as part of its international expansion. For instance, in 2017 it made an investment into a nickel pig iron plant in Shandong province which will produce up to 3.8 million tonnes of stainless steel per year, as well as an expected 1.8 million tonnes of nickel pig iron per annum as part of a plan to improve China’s supply chain for nickel and other metals.
Redeveloping its Jiangsu Shagang Group steel mill into a high-tech, environmentally friendly plant is another major project for the company. This will enable it to reduce emissions and boost productivity – with completion scheduled for 2022. Furthermore, this company is seeking to deepen ties with Australian iron ore miners; recently their chairman met with Rio Tinto officials regarding possible co-operation opportunities.
As China’s steel industry consolidates, large and small steel companies seek partnerships in order to remain competitive. Production limits imposed by the government have led many smaller producers to merge with bigger peers to maintain market share and profit margins.
4. Jiangsu Shagang Group
Jiangsu Shagang Co Ltd specializes in developing, smelting and processing ferrous metal products for automobile manufacturing, engineering machinery fabrication, railway steel production, spring steel bearing production for high pressure boiler tubes tubes tubes as well as alloy billet steel production. Jiangsu Shagang exports its steel products both domestically and abroad with northern China being its primary market. Furthermore they serve automobile manufacturers, coal miners, petroleum companies, marine operatorss locomotive manufacturers and construction industry worldwide with services provided at home as well as abroad.
Jiangsu Sha Gang boasts an illustrious history of iron and steel production, producing more than 41 million tons of crude steel in 2020 alone. Their primary raw materials are iron ore and coal; their products can be found across various national and regional infrastructure projects including cross-sea road-rail bridges, natural gas pipelines, offshore drilling platforms, and power stations.
Jiangsu Shagang had relied heavily on heavy equipment and large-scale expansion to grow its capacity in the past; but as competition in its industry increased, the Company now focuses more on technological innovation and digital transformation as ways of increasing capacity and saving energy and emissions are no longer sustainable development models.
Jiangsu Shagang has made considerable efforts to expand both its production capacity and quality products. Jiangsu’s high-speed wire rod is an indispensable product in China’s market and often used for key projects like railway crossings or subways.
Jiangsu Shagang has also expanded its global footprint, purchasing majority shares of Global Switch Holdings Ltd – a data center operator located across Europe and Asia Pacific – in 2021 to diversify revenue streams and achieve sustainable growth over time.
Our management team comprises experienced professionals with backgrounds in finance, engineering and technology. The Company’s Chairman is Shen Wenrong who brings over 30 years of industry experience. A member of the Chinese Academy of Sciences, he has held senior roles at multiple state-owned companies and listed corporations.