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Steel mill construction booming in Asia.

Issued at 2013-01-16



Yomiuri reported that Chinese and South Korean steelmakers will begin operations at large scale steel mills throughout Asia from 2013 possibly causing a huge oversupply that combined with falling steel prices and high costs for raw materials could hurt Japanese steelmakers. In South Korea Hyundai Steel Co the country's second largest steelmaker will complete construction on a third blast furnace this September at its steel mill in Dangjin. Hyundai Steel will add 4 million tonne in crude steel output capacity per annum for a domestic total of 24 million tonne.

In China the steel mill construction boom will continue mainly in southern coastal regions. In May 2012 Wuhan Iron and Steel began constructing a huge steel mill with an annual output capacity of 10 million tonne in Fangcheng a city in Guangxi Zhuang Autonomous Region. China's Baosteel Group Corporation began constructing a similar scale mill last spring in neighboring Guangdong Province.

In Southeast Asia, South Korea's POSCO along with major Chinese steelmakers that have partnerships with local companies plan to build steel mills in at least 5 locations. The steel mills will have output capacities ranging from 3 million tonne to 20 million tonne each.

Some economists believe that in a few years the output capacity of steel in Asia will increase by about 100 million tonne.


Source: SteelGuru



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