Insight
China: The rise of the private steel sector
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Report summary
Government policy inadvertently created rapid capacity growth in the Chinese steel industry. The introduction of a minimum size threshold led to a refurbishment programme in Tangshan's private steel sector in which small blast furnaces were replaced with much larger ones to avoid being shut down. Wood Mackenzie recently visited seven privately owned Tangshan steel plants where capacity has more than double since 2007 – something representative of the region. In contrast to state-owned...
Table of contents
- Executive Summary
- Tangshan’s capacity increases driven by privately owned plants
- Government policy led to upgrades
- Not all privately owned steel plants are high cost
- Private sector increasingly pivotal in the Chinese steel industry
Tables and charts
This report includes the following images and tables:
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Tangshan regionMost of the Tangshan plants visited have doubled iron making capacityExamples of blast furnace size upgrade
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Some private steel plants are operating in the bottom quartile of the Chinese cost curveWeighted average iron making C1 cash cost for private and SOE plants (US$/tonne, 2012)Distribution of BF sizeBF coke quality requirements
What's included
This report contains:
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