steel company

7/29/2019 Steel Company

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http://www.csc.com.tw/indexe.asp
http://www.csc.com.tw/indexe.asphttp://www.csc.com.tw/indexe.asphttp://www.csc.com.tw/indexe.asp


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Major Players Import and Export

Future Outlook Foreign Players

http://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayers

China has been the largest steel industries in the world driven by increasing demands for rapid urbanization andmany large-scale infrastructure projects. In 2007, the country produced 489.2 million tons of crude steel,recording a production growth of 15.7% from the previous year, while the Chinese consumption of crude steelreached 434.4 million tons, rising by 11.9% from the previous year. Ranked behind China were Japan and theU.S., with a production of 120.0 million tons and 97.2 million tons respectively.

China hasbeen thelargest steel

industries inthe worlddriven byincreasingdemands forrapidurbanizationand manylarge-scaleinfrastructureprojects.

According to China Steel and Iron Association (CISA), China produced 469.5 million tons of iron in 2007 - anincrease of 15.2% from the previous year, while iron ore imports reached 383.0 million tons, increasing by17.4% from a year ago. In late 2006, Chinese steel makers agreed on a 9.5% price raise for iron ore imports in2007. As a result of rising iron ore prices, steel prices are expected to increase further in 2008. As demandincreases, the price of iron ore is expected to rise by 65.0% in 2008, thereby translating to a hike of more than20.0% in steel production costs.
http://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#ImportandExporthttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#FutureOutlookhttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#ForeignPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#ForeignPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayershttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-261.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/T-261.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-261.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/T-261.jpghttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#ForeignPlayershttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#FutureOutlookhttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#ImportandExporthttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#MajorPlayers


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In 2007, China recorded a higher yield rate, accounting for 36.4% of the global steel production. Within theindustry, the output of cold-rolled wide strips, cold-rolled sheets, claddings strips, coating strips and electricalsteel plates reached 57.9 million tons, accounting for 10.3% of overall steel products. In 2007, the consumptionof steel products in China totaled 518.8 million tons, of which 502.0 million tons were produced domestically -accounting for 96.8% of Chinas steel market. As the production of steel increases in China, the level of wasteemission has also been rising, leading to serious environmental decline. In 2006, China failed to reach itsenergy efficient and emission reduction goals, and this was largely attributed to the heavy industries such assteel making. In China, steel making plants consume 20.0% more energy per ton than the world average, andproduce high levels of harmful sulfur dioxide and chemical oxygen demand (COD).

In a bid tocurb thepollutionlevels withinthe country inthe name ofenvironmentalprotection,the Chinese

governmenthas shutdownfactories andplants thathave beenidentified asthe sources ofheavypollutants

In a bid to curb the pollution levels within the country in the name of environmental protection, the Chinesegovernment has shut down factories and plants that have been identified as the sources of heavy pollutants.

Additionally, Chinese leaders have pledged to reduce energy consumption per unit of GDP by 20.0% during the11th Five Year Period (2006-2010). Thanks to this new direction, many Chinese steel making plants have beenurged to withhold production and relocate their manufacturing operations.Top
http://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#Tophttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-263.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-262.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-263.jpghttp://www.chinaknowledge.com/Business/cbg%20chart/cbg%20chart/chapter%202/Big/F-262.jpghttp://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14#Top


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Major PlayersIn 2007, Chinas steel industry revealed signs of consolidation in a market that was previously ratherfragmented, and in need of mergers and acquisitions. Within the market, the 10 leading steelmakers produced162.7 million tons of steel products, accounting for more than 50.0% of the countrys total output, as comparedto less than 50.0% in the previous year.

In China, the government has been channeling efforts into establishing 4 key steel production bases across thecountry. The production bases are namely Anshan Iron and Steel Group, as well as Benxi Iron and Steel inNortheast China, which have merged in 2005 but have maintained independent operations.

Other production bases include Shougang Group and Tanggang Group in North China, Baoshan Iron and Steel(Baosteel) Group and Maanshan Steel Group in East China. Lastly, there is Wuhan Iron and Steel as well as thePanzhihua Iron and Steel Group in Central China.

Within Chinas steel industry, Baosteel is Chinas leading steel maker. Specializin g in the manufacturing of hightechnology and high value-added steel products, the company supplies steel to industries including automobile,oil and natural gas explorations, as well as household appliances. Baosteel has achieved global recognition

within the industry, with exports reaching 40 countries and regions worldwide. In 2006, Baosteel was ranked thefifth largest steel-producing company in the world, with a production of 22.5 million metric tons of crude steel.

In 2007, the company sold 28.0 million tons of steel products, recording an increment of 20.6% from theprevious year. Meanwhile, Baosteel realized pre-tax profits of US$4.69 billion, increasing by 50.0% from theprevious year. In early 2007, Baosteel acquired Bayi Iron and Steel Group in the Xinjiang Uygur AutonomousRegion in northwestern China, in a bid to expand its operations.

In 2007, the Jiangsu Shagang Group became the second largest steel maker in China with a consolidatedoutput of 22.9 million tons when Shagang acquired controlling stakes in three mills - Anyang Yongxing Iron andSteel, Jiangsu Xinrui Special Steel and Jiangsu Yonggang Group.

Shougang Group is the seventh largest steel maker headquartered in the Chinese capital of Beijing. In line withthe Chinese governments aim to reduce pollution levels in Beijing and surrounding cities before the 2008Beijing Olympic Games in August, Shougang began to cut production by 4 million metric tons a year since thebeginning of 2008. Additionally, the company is shifting its operations to Tangshan in the northern province ofHebei, where the construction of a US$9.4 billion plant is underway. According to schedule, Shougang willcomplete its relocation to Tangshan by the end of 2010.Top

Import and ExportIn 2006, Chinas steel exports scaled to a record high when Chinese steel products were increasingly exportedto overseas markets (with the U.S. being the largest export destination). The influx of Chinese steel has raisedprotests from foreign governments, as anti-dumping and countervailing measures were taken. A series ofcooling efforts and anti-dumping investigations were executed by trade partners on the Chinese producers. Onseveral occasions, steel producers in the U.S. have appealed to relevant officials, demanding measures tocounter Chinas subsidies to steel manufacturers. As a result, the government reduced the export tax rebaterate from 18.0% to 15.0% in 2006 and subsequently abolished subsidies provided to steel producers.

In 2006, despite a shift in governmental regulations, China emerged as the largest exporter of steel in the worldwith an export volume totaling 43.0 million tons - increasing by 109.6% from the previous year, while imports
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amounted to 18.51 million, dropping by 28.3%. On the whole, net exports of steel reached 24.5 million tons.Meanwhile, China imported 2.5 million tons of stainless steel products, recording a decline of 20.1%.

In April 2007, the Chinese government removed a 13.0% export rebate on 83 types of steel products to cooltrade surplus in the steel industry. Additionally, the Chinese government levied an export tax ranging between5.0% and 10.0% on 83 types of steel products including hot-rolled plates, wire and steel sections in June, whileexport taxes on steel products such as steel billets and steel ingots were raised from 10.0% to 15.0%.

As a result of the implemented regulations, Chinas export of steel products in the remaining half of the yeardeclined by 22.6% from the previous year. In 2007, China exported 62.65 million tons of steel products,increasing by 45.8% from the previous year, while imports declined by 8.8%, to reach 16.9 million tons.

Amid increasing pressure from the U.S. and Europe, the China Iron and Steel Association (CISA) will beincreasing export tariffs on steel products in 2008. Exports in semi-finished steel products are likely to reach25.0%, while exports in finished steel products are expected to hit 15.0%, thereby leading to a likely decline inexport values.Top

Future OutlookWith a slowdown in global production growth rates, China is likely to post a slight decline in the growth rates ofits steel industry as well. Due to a tightening monetary policy in China in 2008, the market demand for steel is

likely to decrease as a result of lower investments in fixed assets as well as fewer new projects.

Following the trend observed in 2007, production costs of steel is expected to rise notably in 2008, as costs ofraw materials and freight rates continue to climb. Steel exports are also expected to fall significantly, with thetotal export volume estimated to reduce by at least 20.0 million tons year on year.

In a bid to strengthen the industry, China plans to consolidate the industry, whereby the top 10 producers withinthe country produce 50.0% of the total steel output by 2010.

On the whole, while the Chinese steel industry is thriving, the industry is generally undergoing restructuring, andmergers and consolidations, as pricing and market mechanisms are addressed.Top

Foreign Players

In China, the growth of the steel industry reflects the Chinese governments role in promoting an efficient andeffective structure. Companies are primarily state-owned, with a large amount of intervention and directivesgiven by the Chinese government. Within the industry, Chinas Steel Policy provides for continued directsubsidization by means of tax refunds, lower interest rates, as well as other preferential policies.

Additionally, the policy imposes restrictions on the involvement of foreign investments. As such, the industry hasa heavy concentration of domestic companies, while foreign investments are relatively low. Driven by thesefactors, the growth of steel consumption has been estimated to drop to 10.0%.

In October 2005, Arcelor Mittal, the worlds largest steel maker based in the Netherlands, engaged in one of thefirst equity mergers between a foreign steel company and a Chinese firm when it spent US$338.0 million inacquiring a 37.0% stake in Valin Steel Tube and Wire Co. Ltd., the tenth largest steel maker in Chinas Hunanprovince.

It became the only foreign firm to hold direct ownership of a Chinese steel maker. In November 2007, ArcelorMittal spent US$647 million to acquire a 28.0% stakes in the China Oriental Group, a steel product maker,thereby strengthening its presence in the country.

Within the industry, Australia-listed Gindalbie Metals is a partner with its Chinese counterpart, Ansteel. In 2008,both companies entered an agreement for an AUD $1.8 billion Karara Iron Ore Project in Western Australia.
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http://www.clima.net.cn/
http://www.clima.net.cn/http://www.clima.net.cn/http://www.clima.net.cn/


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http://www.baosteel.com/group_e/index.asp
http://www.baosteel.com/group_e/index.asphttp://www.baosteel.com/group_e/index.asphttp://www.baosteel.com/group_e/index.asp


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http://www.metalbulletin.com/stub.aspx?stubid=12542
http://www.metalbulletin.com/stub.aspx?stubid=12542http://www.metalbulletin.com/stub.aspx?stubid=12542http://www.metalbulletin.com/stub.aspx?stubid=12542


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Chinas ten-year rapid rise to ascendancyTen years ago, when Metal Bulletin published its Top Steelmakers list for 2000, Chinas rise to

become the dominant force in the global steel industry had barely begun, and was hardlyanticipated.

Only two Chinese steelmakers Baosteel and Anshan Steel featured in the top ten. There were only fivein the top 50, and the combined output of all Chinese mills on the list was less than 10% of global output.In the accompanying text for the Top Steelmakers of 2000, Chinas steelmakers merited a single sentence,referring to the entry of two new steelmakers near the bottom of the list.


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We decided that seeing the figures for another year ending in a zero was a good opportunity to look back athow our list which ranks all steelmakers with crude steel output higher than 2 million tonnes in theprevious year has changed since the start of the century.

Consolidation in mature economies and the proliferation of steelmakers in China has created a listdominated by Chinese steelmakers.Led by the worlds no 2 Hebei Steel, with 52.86 million tonnes of output, Chinas steelmakers occupy five ofthe top ten places and, for the first time, half of the top 20.Of the 116 steelmakers that made the 2 million-tonne cut, nearly half 57 were from China. And theircombined output was 514.39 million tonnes, more than half of global output.This reflects not only the ballooning of steel production in China, but the relative failure according to itsown goals of the Chinese industry to consolidate. The result is dozens of mid-sized steelmakers from allparts of China crowding the middle of the world rankings table.There have again been some signs of progress, with the top five Chinese steelmakers Hebei Steel,Baosteel, Wuhan Steel, Shagang, and Shougang accounting for 37% of Chinese production on the list,against one-third in 2009.Two Chinese producers Benxi Steel and Anyang exceeded10 million tonnes last year, bringing the number of Chinese mills above that threshold consideredimportant in China to 12.In 2001, we wrote in passing ofChinas steel policymakers wanting to "concentrate production on fewer,

larger sites". They are still trying: maybe well check up on progress again in 2021.

The notable movers of 2010There was little remarkable in the 2010 Top Steelmakers list, when compared with 2009.ArcelorMittal extended its dominance at the top of the rankings, raising output by around 24% to 90.5million tonnes.Among the notable movers were Ukraines Metinvest, which took over the Ilyich mill, also in Ukraine, and

produced 13.83 million tonnes, moving to no 23 from no 38 in the rankings.South Koreas Hyundai Steel benefits from the output of its new blast furnace works; its output rose bymore than half to 52.78 million tonnes, putting the company at no.26.US Steel made a big jump, which was perhaps more reflective of the depths it plummeted to in 2009 thananything else. Its output rose 46% to 22.26 million tonnes.In China, Shougangs new Caofeidian greenfield works in Hebei province helped it boost output by nearlyhalf to 25.84 million tonnes, putting it in Chinas top five.One major change either next year or the year after could be in Japan, where Nippon Steel and SumitomoMetal Industries plan a merger. Based on last years figures, a unified company would produce 49.24million tonnes, propelling it to third place.

Top Steelmakers 2000Company Output in tonnes (million)Nippon 29.07Posco 28.48Arbed Group 24.1LNM Group 22.44Usinor 21NKK 20.56Corus 19.96ThyssenKrupp 18.09Baosteel 17.72Riva 15.57Kawasaki

13.01

Sumitomo 11.65


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US Steel 10.68Sail 10.57China Steel 10.25Nucor 10.22Magnitogorsk 10.04Severstal 9.55Bethlehem Steel 9.09


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http://www.worldsteel.org/?action=programs&id=73
http://www.worldsteel.org/?action=programs&id=73http://www.worldsteel.org/?action=programs&id=73http://www.worldsteel.org/?action=programs&id=73


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http://en.wikipedia.org/wiki/List_of_steel_producers
http://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/List_of_steel_producershttp://en.wikipedia.org/wiki/List_of_steel_producers

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