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PrintThe China Iron and Steel Association said Monday January 28th that 38 steelmaking converters with output capacity of 45 million tonne of crude steel went into production in China last year 32 of which were newly built.
Significantly in an industry dominated by large government run companies private enterprises put into production 17 of the new facilities representing almost 42% of the added tonnage.
The investments come despite plummeting profitability in the sector and amid constant allegations that China's state controlled steel industry is not at all exposed to market realities but is simply used by the communist government as a blunt instrument for economic growth.
China's blast furnaces forge steel at a rate of almost 2 million tonne a day and account for close to half of global output that reached over 1.5 billion tonnes last year.
The global iron ore business is dominated by China the country's blast furnaces consume more than 60% of the more than 1 billion tonne seaborne iron ore trade.
Iron ore has pulled back from 15 month highs set early January when the commodity came within sight of USD 160 a tonne.
On Monday January 28th Tianjin iron ore was changing hands at USD 148.40 a tonne still up an astonishing 70% from its September lows.
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