Hebei Iron plans to move 11% of output to South Africa.
These are not the best of times to be one of the mainland’s massive, state-owned steel mills. The economy is slowing, competition is increasing and there is widespread disgust and impatience with the smog pouring out of their stacks. In short, their lucrative business model for the past three decades is slowly dying. So what is a manager of a mainland steel mill to do? One surprisingly popular option is to bid the mainland goodbye.
In November, Hebei Iron & Steel, the country’s largest steelmaker by production, said it was moving five million tonnes, or roughly 11%, of its annual output to South Africa.
According to press reports, it will not be going abroad alone. By 2023, Hebei province, the mainland’s most polluted province, plans to export 20 million tonnes of steel, 30 million tonnes of cement and 10 million weight boxes of glass capacity (a weight box equals roughly 50 kilograms) to points still not named.
Source – Bloomberg
Zhejiang Yaang Pipe Industry Co., Limited