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Baoshan Iron and Steel Co. Ltd began to escalate the issue

7 April 2016

According to the Chinese company, Baoshan Iron and Steel Co. Ltd in 2016, it will escalate the production of steel. The company is a unit of Baosteel Group. Height will be about 20% relative to the indicators of 2015. Last year, the volume of output amounted to 22.6 million. Tons. In 2016 they are expected to reach the level in excess of 27 million. Tons. This Baoshan Iron and Steel controls only a few assets. The combined capacity of Baosteel Group exceeds 40 million. Tons / year. Increase of production volumes expected in the background input to the work of the new steel mill. Annual Zhanjiang Steel production capacity of 9 million. Tons. input process of the plant began in 2015. In mid-2016 steel mill will start operating at full capacity.

This event, to some extent annoying Western experts and commentators. Many of them are believed to cause the current crisis, it is the Chinese production. We are talking about overproduction of steel, and an excess of export volumes of Chinese products. Experts estimate the number of surplus Chinese steel production capacity of 400 mln. Tons / year. Measures the Chinese government to limit them rely inadequate. Closure of enterprises will be held for five years. The total annual output capacity will be liquidated 100−150 mln. Tons.

However, representatives of the Chinese Government to stop support enterprises. To date, the provincial administration are working with manufacturers. The issue, what specific capacity will be stopped, and in what period of time. Thus Baosteel Group from the reorganization will remain undoubted benefit. In connection with the departure of the outsiders of the market it will be able to increase its share.

Meanwhile, in another closed Tangshan steel production. The city has the status of an informal capital of China Metallurgical. Annual production capacity Qianan Zhayi Steel 3 million. Tons. The company engaged in the production of hot-rolled products. Its representatives said about stopping the enterprise and dismissal of employees. The reason for the closure has not been disclosed. However, the apparent reason for the financial problems due to lower cost of production. In addition, the level of pollution was very high now. Qianan Zhayi Steel needed a costly upgrade sewage treatment plants.

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