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

Nine steel companies in China’s Inner Mongolia will withdraw 11 blast furnaces and 12 converters within three years from 2021-2023, with a majority of the capacity integration and exits done in 2021-2022. The exits involve ironmaking capacities of 6.65mn mt and steelmaking capacities of 6.2mn mt. 

 

The region’s authorities have issued notices to steel, ferroalloy and coking enterprises to eliminate obsolete units and resolve excess capacity in the next three years. The integration work of these companies should be carried out soon to facilitate the exit of production capacity. Authorities are eliminating blast furnaces below 1,200cu m, basic oxygen furnaces below 100mt and electric arc furnaces lesser than 100mt capacity, according to local media. 

 

The nine steel companies are listed below. 

* Baogang Group Company

* Yaxin Longshun Special Steel

* Baotou Daan Iron and Steel

* Baotou Jiyu Holding

* Baotou Baoxin Special Steel

* Baotou Deshun Special Steel

* Ulanhot Steel 

* Ningcheng Xinma Casting 

* Chifeng Yuanlian Iron and Steel Industry

 

Earlier, Inner Mongolia banned the new steel and coal projects in the region to control its energy consumption. The region has also curbed new aluminium capacity additions under the 14th five-year plan.

 

In 2020, Inner Mongolia produced 31.2mn mt of crude steel, which is 3pc of China’s total output. 

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