China Huarong acquires stake in Tianjin International Mining Exchange
   

Recently, China Huarong Asset Management Co. (China Huarong), one of China's four state-owned asset management companies, announced that it has formally become a shareholder of Tianjin International Mining Exchange. Details regarding the stake acquired by China Huarong in the exchange have not been released yet. Meanwhile, Liu Hankai, CEO of Tianjin International Mining Exchange, stated that cooperation with such large state-owned companies as China Huarong would be beneficial for the exchange to expand its financial innovation, to standardize the bulk commodity markets, and to strengthen its risk-resistance capacity.
Launched in November 2010, Tianjin International Mining Exchange is an international mining platform co-founded by China's Ministry of Land and Resources, the Tianjin municipal government and China Mining Association.

  China's shipbuilding output down 23.1% in January-November
   

In the January-November period of the current year, the aggregate shipbuilding output in China (from a total of 80 shipbuilding enterprises) amounted to 38.86 million deadweight tons (dwt), down 23.1 percent year on year, according to the figures released by the China Association of the National Shipbuilding Industry (CANSI) on December 23.
In the given period, China's new ship orders amounted to 51.86 million dwt, up 204 percent year on year. As of the end of November, ship orders on the books of Chinese shipbuilding enterprises totaled 119.23 million dwt, up 5.2 percent year on year and up 11.5 percent compared to the end of 2012.
In the January-November period this year, the aggregate shipbuilding output for export orders in China totaled 32.41 million dwt, down 24.2 percent year on year and accounting for 83.4 percent of the total shipbuilding output in China. In the given period, China's new ship export orders amounted to 48.07 million dwt, up 260 percent year on year and constituting 92.7 percent of total new ship orders. As of the end of November, ship export orders on the books of Chinese shipbuilding enterprises totaled 104.68 million dwt, up 11.5 percent compared with the corresponding date in 2012 and constituting 87.8 percent of total ship orders on the books of Chinese shipbuilding enterprises.

  Baogang inks strategic cooperation agreement with Zoomlion
   

Inner Mongolia-based Chinese steelmaker Baotou Iron and Steel Co. (Baogang Group) has announced that on December 19 it signed a strategic cooperation agreement with Hunan Province-based Zoomlion Heavy Industry Science & Technology Development Co., Ltd (Zoomlion), a Chinese manufacturer of construction machinery and sanitation equipment.
Accordingly, Baogang, the largest industrial enterprise in Inner Mongolia, will cooperate on an in-depth basis with the leading enterprise in China's construction machinery industry. Li Chunlong, general manager of Baogang Group, said the agreement heralded great prospects for both sides. In addition, over the past 20 years, Baogang Group has built up a good relationship with Inner Mongolia-based Taixi Coal Group, which is also a key partner of Zoomlion. The new agreement will provide the three companies with the opportunity to widen and deepen their cooperation.

Baogang's coke oven No. 4 produces first coke
    The coke oven No. 4 of Inner Mongolia-based Chinese steelmaker Baotou Iron and Steel Co. (Baogang Group) successfully produced its first coke on December 16, as announced by China Metallurgical Group Corporation (MCC). The coke oven was built by MCC subsidiary China MCC5 Group Co. (China MCC5 Group). Baogang's coke oven No. 4, with its seven-meter-high carbonization chamber, has a total annual coke output capacity of 3 million mt. The high quality coke and coal gas produced by the coke oven No. 4 will boost Baogang's self-sufficiency in raw material supply.
  China's average daily crude steel output decreases in early December
   

On December 17, the China Iron and Steel Association (CISA) announced that in early December (Dec. 1-10) this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China totaled 1.6951 million mt, down 0.81 percent compared to late November (Nov. 21-30). Meanwhile, the average aggregate daily crude steel production of all steelmakers in China in early December was estimated at 2.0129 million mt, indicating a decrease of 3.7 percent compared with late November.
According to the CISA's previous figures, in late November this year the average aggregate daily crude steel output of large and medium-sized steel enterprises in China had amounted to 1.709 million mt, down 2.37 percent compared to mid-November (Nov. 11-20). In late November, the average aggregate daily crude steel production of all steelmakers in China was estimated at 2.091 million mt, indicating a decrease of 1.94 percent compared with mid- November. Meanwhile, as of December 10 this year, inventory of the main finished steel products in the major steel markets in China totaled 13.2113 million mt, up 1.99 percent as compared to the figure recorded on November 30.

  Ansteel inks strategic cooperation agreement with Sany Group
   

Liaoning Province-based Chinese steelmaker Anshan Iron and Steel Group Co. (Ansteel) has announced that it signed an agreement on a strategic cooperative partnership with Changsha, Hunan - headquartered multinational heavy machinery manufacturer Sany Group. Accordingly, both sides will cooperate on machinery and equipment supply, steel product purchases, and in technology development.
Sany Group is among the leading heavy equipment manufacturers in the world, while it has overseas manufacturing facilities in Brazil, Germany, and India and in the US. The company has around 70,000 employees worldwide.

  Tangsteel's hot rolled flat product exports triple in January - November
   

Recently, Hebei Province-based Chinese steelmaker Hebei Iron and Steel Group Co. announced that in the first 11 months of the current year its subsidiary Tangshan Iron and Steel Co. (Tangsteel) exported 609,000 mt of hot rolled flat steel products, triple on year-on-year basis and constituting an all-time high for a January-November period.
In addition, Hebei Iron and Steel Group also announced that in November this year another of its subsidiaries, Handan Iron and Steel Co. (Hansteel), supplied 1,280 mt of 0.55-1.15 mm thick DX51D+Z galvanized steel sheet to Anhui-based Chinese electric appliance producer Meiling Company Ltd.

  Steel production grows in China despite capacity reduction
   

China's Ministry of Industry and Information Technology has asked many iron and steel mills to slash capacity but the industry's production volume has continued to grow even after some old mills were torn down, according to the Innovative Finance Observation as per Want china times .
Figures compiled by the National Bureau of Statistics showed that 63 million tonnes of steelmaking capacity was eliminated between 2006 and 2012, but 440 million tonnes of extra capacity was added.
Meanwhile, 6-8 million tonnes of outdated capacity from eight iron and steel companies was terminated on Nov. 24. The companies involved were all privately-owned, small-scale and had halted capacity for more than six months.
"The government seems to be determined this time, but it is hard to say how the results will turn out," said Wang Tao, chief economist at UBS Securities.
Wang said that Tangshan in northern China's Hebei province is one of world's largest strongholds for steel production, but overcapacity has slashed profits.
The development of the iron and steel industry in Tangshan has relied mainly on the private sector, Wang said. But the Tangshan government is now lending its support to large state-run firms, exerting significant pressure on private companies.
The city remains a major steel-production zone in China as it has abundant iron and steel ores, a systematic iron and steel industry, and experienced smelter workers. It is due to these advantages that the private sector grew rapidly from 2000 and pushed capacity to 100 million tonnes. In late 2002, the total iron and steel production was recorded at 12 million tonnes and surged by 70% to 21 million tonnes a year later.
Hebei's iron and steel production was the highest nationwide for 12 straight years, and the current capacity is 200 million tonnes, with the capacity in Tangshan accounting for one-eighth of the total. However, aside from the overcapacity issues, the rapid development of the industry has also had an impact on air quality, with Tangshan making it into the top 10 most polluted cities list this year, according to the Ministry of Environmental Protection.

  WISCO launches laboratory for hydrogen sulfide-resistance testing
    Hubei Province-based Chinese steelmaker Wuhan Iron and Steel (Group) Corp. (WISCO) recently announced that it has completed eight tests for hydrogen sulfide-resistance on its X65MS steel for making tube and pipe, marking the commissioning of its new laboratory for hydrogen sulfide-resistance testing. WISCO already had the ability to test steel for resistance to acidic environments, while with the new laboratory it now also has the ability to carry out tests for hydrogen induced cracking (HIC) and sulfide stress corrosion cracking (SSCC). The new laboratory will provide support for WISCO's development of steel used in pressure vessels, pipes and tubes in corrosive environments. The laboratory will in the future become an independent lab, providing third-party quality tests for other companies.
  Chinese Shagang's steel scrap consumption to rise 13% in 2013
    Privately owned Shagang Group, China's biggest steel scrap consumer, expects to utilize 5.5 million mt of scrap this year - or about 15,000 mt/day - an increase of 500,000-800,000 mt, or about 13%, from last year, a company source said as per reports in Platts. The increase was due to the startup of an electric arc furnace at the end of November last year, the source said without providing further details. Shagang, based in China's eastern Jiangsu province - the biggest scrap consuming province -will produce at least 1.5 million mt of the scrap itself this year, while the rest will be procured mostly via contracts, the source said. The company's scrap inventory currently stands at around 300,000 mt, which is sufficient for production throughout winter, the source said.
  Construction starts on sintering plant of Baosteel Zhanjiang
    Construction commenced on December 19 on the new sintering plant project of Baosteel Zhanjiang Iron and Steel Co., the Zhanjiang, Guangdong-based subsidiary of Chinese steel giant Baosteel, as announced by Beijing-based state-owned China Metallurgical Corporation (MCC) on December 23. The construction work on the project is being carried out by MCC subsidiary MCC TianGong Group Corporation Limited (CTMCC).
The sintering plant project is the third largest project undertaken by CTMCC at Baosteel's new Zhanjiang steel base. Within the scope of the project, two 550 m2 sintering machines as well as auxiliary facilities will be built. Construction of the sintering plant, covering an area of 52,224 square meters, is expected to be completed in August 2016
  Bayi Steel to increase investment in Nanjiang Steel Baicheng
    Xinjiang-based Chinese steelmaker Bayi Iron and Steel Co. (Bayi Steel), a subsidiary of Chinese steel giant Baosteel Group, has announced that it plans to increase the registered capital of its wholly-owned subsidiary Nanjiang Steel Baicheng Co. (Nanjiang Steel) by RMB 2.7 billion ($442.6 million).
The capital increase will be carried out in two phases. The first phase of the investment amounting to RMB 1.2 billion ($196.6 million) is to be completed before March 31, 2014. The second phase for a total of RMB 1.5 billion ($245.9 million) will be completed before December 31, 2014. Accordingly, the registered capital of Nanjiang Steel will rise from RMB 500 million ($82.0 million) to RMB 3.2 billion ($524.6 million).
As of September 30, 2013, the unaudited total assets of Nanjiang Steel amounted to RMB 9.991 billion ($1.637 billion), while total liabilities stood at RMB 9.877 billion ($1.619 billion). Bayi Steel stated that the investment in Nanjiang Steel is from its own funds and will provide financial support for the subsidiary.
  China Hebei province plans to reduce smog by slashing steel capacity
    The Ministry of Environmental Protection has released figures on the air quality of 74 monitored cities nationwide for the first 10 months of this year. Over half of the ten most polluted Chinese cities were in Hebei province.
The government agencies of Hebei have made great efforts to resolve the pollution problem as their positions in government may be jeopardized if they fail to present any solutions. The Ministry of Environmental Protection has released figures on the air quality of 74 monitored cities nationwide for the first 10 months of this year. Over half of the ten most polluted Chinese cities were in Hebei province.
The government agencies of Hebei have made great efforts to resolve the pollution problem as their positions in government may be jeopardized if they fail to present any solutions.
Mr Zhou Benshun secretary of the provincial committee of the Communist Party of China said that "The Beijing-Tianjin-Heibei region and its nearby areas are the most polluted parts of China, and Hebei should take the bulk of the responsibility compared with Beijing and Tianjin.”
The weekly reported that pressure to ease the province's pollution also came from cities nearby. A research report showed that Beijing emitted 70% of the country's greenhouse gases, while 30% of its pollutants came from cities nearby.
As of 2012, 148 steel mills were registered in Hebei, with total assets reaching CNY 957 billion (USD 157.5 billion), with more than 610,000 people employed by them. The added value of the industry in 2012 was recorded at CNY 386.5 billion (USD 63.6 billion), which accounted for 13.9% of the total GDP that year.