Wuhan Iron & Steel Group, Angang New Co. and rival Chinese mills are expanding overseas and turning to specialty products to battle overcapacity in China, the world’s biggest producer of the metal.
Wuhan Steel, the nation’s fourth-biggest mill, is in talks to build plants or buy rivals in other countries, General Manager Deng Qilin said in Beijing while at the National People’s Congress. Angang may develop its specialty steel product business, General Manager Zhang Xiaogang said.
Overcapacity and rising costs have depressed the average profit margins of Chinese steelmakers to just 3.5 percent in 2010, the lowest of any industry, according to the government. The nation’s new five-year building program will need more high- grade alloy for railroads and nuclear power plants, China Iron and Steel Association said.
The government plans to invest 800 billion yuan ($121 billion) to build 6,000 kilometers (3,700 miles) of high-speed rail lines by 2012 to carry its industrial expansion inland.
The government plans to invest 800 billion yuan ($121 billion) to build 6,000 kilometers (3,700 miles) of high-speed rail lines by 2012 to carry its industrial expansion inland.
豫公网安备41010502003434号