Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

China’s port city of Fangchenggang aims to raise its steel production capacity from 20mn mt to 30mn mt by 2025. The provincial government aims to transform the city, which serves as a transit base for raw materials, into a steel industry base and develop a metal industry cluster in the city.  


Fangchenggang city will focus on optimizing product structure and adopting advanced technology to transform, upgrade and develop the metal industry by 2025. 


Steel industry base

The local government aims to expand the influence of Guangxi province’s steel industry in China by:  


1) Accelerating the development of automotive steel, special steel, marine steel, new alloy materials  and other steel upstream and downstream industries in the Fangchenggang Economic Development  Zone. The cluster will also focus on advanced equipment manufacturing and metal products. 


2) Accelerate research and application of high-end advanced specialized steel products and the construction of the Guangxi Shenglong Metallurgical Industry Upgrading and Technical Transformation Project (Phase II). 


3) Construction of Xinbiao 1.2mn mt annual capacity year scrap steel recycling project and Rongding Fangchenggang galvanized steel production base and the 1.5mn mt high-quality steel deep processing project.


4) Transfer of compliant production capacity from other provinces to build a 10mn mt steel production capacity and increase the competitiveness of the steelmaker.


Fangchenggang Iron and Steel Base Project’s No. 1 blast furnace was put into operation on June 28. The construction of industrial chain projects is underway. Among them Guangxi Shenglong Cold Rolling Project and the Cuizhu Prefabricated Industrial Park has started. Three steel processing projects, including the intelligent manufacturing of parts, manufacturing of galvanized steel in Rongding Fangchenggang have also commenced operatons. The local administration has invested CNY22.8bn for a total output value in excess of CNY50bn on completion.


Four steelmakers are located in Fangchenggang are Guangxi Shenglong Metallurgical, Guangxi Iron and Steel Group, Fangchenggang Fucheng Iron and Steel Products, and Fangchenggang Jinxi Section Steel. Of these 3 companies have blast furnace and converter steelmaking while one company has electric furnace. Excluding Jinxi Section Steel the other three companies have commenced production.

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