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Tag Archives: WISCO and Baosteel Merger

Consolidations in China’s Steelmaking Industry are Healthy and Necessary

19 Tuesday Jul 2016

Posted by Angela Chao in Dry bulk shipping

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Chinese steelmakers, steel industry, WISCO and Baosteel Merger

Big news hit the headlines this week with the announcement of the mega merger between Chinese steelmakers WISCO and Baosteel. Once merged, the two firms will become the second largest steel company in the world, causing some to fear that there will be a negative impact on iron ore demand due to a reduction in producers. But industry experts seek to assuage those concerns, pointing out that the last producers still left standing, following mergers and acquisitions, tend to be more strategically located along the coast, with easy access to global iron ore imports, which are of better quality and lower prices than domestic product. For example, high-quality Tangshan 66% ore, produced domestically, is selling for $81/ton, whereas 62% imported ore, though slightly lower in quality, is selling for $53/ton. This is an important fact for Chinese steel makers, who need to make the best use of all their operating cash. Continue reading →

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About Me

Angela Chao
Chairman and C.E.O. of Foremost Group, a leading shipping and trading enterprise, Angela Chao is an active businesswoman who serves on several boards and loves to volunteer. Angela comes from a loving and supportive family of Chinese descent. The Chao family dedicate themselves to serving and contributing to society.

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Recent Posts

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