Baosteel to purchase Shaogang and Guanggang in 2007

摘要

According to latest news, Baosteel's purchase of Shaogang and Guanggang will get good process in next year. From CISA's report, many factors play significant role in domestic steel industrial development, such as transportation, resource, energy and environment. Average purchase cost of imported iron ore in May was about 629 yuan per ton for 42 large steelmakers. Baosteel's cost was 441.57 yuan per ton, 187.82 yuan lower than average level, because of long-term trade contract and owning ports. However, landlocked steelmakers' cost was higher for difficulty transportation conditions. It is considered publicly that coastal Rizhao, Caofeidian, Fangchenggang and zhenjiang are most suitable places for steel mills. Baosteel had plan for building plant in Zhanjiang twenty years ago. Further, it hoped to build large steel project with annual capacity of 20 million tons. But this plan was not approved result from government policies of control capacity in the last year.