Wednesday, May 3, 2017

Steel Industry in China

Steel production increased rapidly during the post World War 2 era. Many countries developed at a rapid rate with amazing construction booms. Steel making process involves use of iron ore and scrap. The process includes exclusion of impure element like nitrogen, excess carbon, sulphur silicon etc. In order to obtain various grades of steel elements like vanadium, manganese, nickel and chromium are added during production. The introduction of Bessemer and Siemens Martin processes revolutionized production globally.     

The capital reforms under Deng Xiaoping gave a big boost to Chinese industrialization.  lagging much behind the global steel industry the reforms brought about a paradigm shift and augured production.   

By 2011 China became the largest producer of steel in the World. The production rose to over 680 million tonnes accounting for forty five percent of global production.This despite stiff competition by major players and unstable prices of raw material. As per the trend in almost each sector the industry experienced prices rise within this period.  

The production continued to peak until its decline on year 2016 which resulted in stock market crash in that country. This came about as a result of other countries exports specially from Russia and Ukraine. 

The largest steel producers in China are Hesteel Group with production being 31 million tonnes which is much below Arcelor Mittal. The latters is the largest steel producers in the World with 116 million tonnes. Other major producer of this commodity are Jiangsu Shagang, Ansteel and  Baosteel groups. India ranks fourth in production of steel and is undergoing a rise in production along with new entrants like Brazil and South Korea.     

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