Anyang to reduce the number of steel companies

According to documents from the Anyang Municipal Government in Henan, 11 steel companies in the Chinese city will be consolidated into four in 2020, with the proportion of special steel reaching more than 30%. Shagang Group’s Anyang Yongxing Steel and the Anyang government held talks this week on company integration, Kallanish notes.

Of the 11 steel companies in Anyang, there are 6 integrated plants. These are Anyang Iron & Steel, Shagang Yongxing, Fengbao Iron & Steel, Yaxin Iron & Steel, Xinpu Iron & Steel, and Huixin Iron & Steel. Independent ironmaking companies are Bosheng Steel, Xinyuan Steel and Lin Steel. The only electric arc furnace steelmaker is Boxin Steel and Linzhou Hexin Casting Industry uses electric furnaces to produce pig iron. The main finished products from the city are high-strength wire rod for construction, high-quality steel for machinery, pipe, hot-rolled coil and cold-rolled sheet.

The local government is negotiating an integration plan for these companies. Anyang expects the resulting four steelmakers will have only blast furnaces over 1,200 cubic-metre in volume, converters over 120-tonne and electric arc furnaces over 100-t by 2025.

Eleven steelmakers in Anyang produced 14.69 million tonnes of iron, 14.86mt of crude steel and 15.09mt of finished steel in 2019, up by 5%, 3.7% and 0.6% year-on-year.