Baowu Group acquires Xinyu Steel
China's largest steelmaker Baowu Group is taking majority control of a steel company in the Jiangxi province, fast-tracking the company's consolidation plan and boosting production capacity at time of heightened emphasis on decarbonization.
The Jiangxi province has agreed to transfer a 51pct stake in Xinyu Iron & Steel Group (Xingang Group) to the steel giant, according to a statement from Xingang Group's Shanghai-listed arm.
The move will take Baowu one step closer to its annual crude steel output target of 200 mln tons by 2025.
Consolidation has accelerated in China's steel industry in line with the country's decarbonization goals that got a major push in 2021, giving the industry more negotiating power over raw material and prices.
The Jiangxi provincial government will hold the remaining 49pct stake in Xingang Group after Baowu takes the majority share, according to the company statement.
SSAB's Q1 earnings surge on higher steel prices
Swedish steelmaker SSAB reported a sharp jump in first-quarter earnings on the back of strong steel prices, but said the outlook for demand and shipments was beset by some uncertainty.
The specialized high-strength steels producer rode to a record profit last year on the back of soaring steel prices and strong output at its production plants in Sweden, Finland and the United States, a development that carried into 2022.
The steelmaker said operating profit, excluding extraordinary items, rose to SEK 8.38 bln (USD 864 mln) as compared to SEK 1.99 bln in the same period last year.
The company said in a statement that the first quarter had seen an "exceptional" rise in demand due to constraints on steel supply following Russia's invasion of Ukraine, which Moscow calls a "special military operation".
Ternium's earnings jump in first quarter on higher steel prices /Mexico/
Ternium's net income rose 24pct to USD 877.5 mln in the first quarter from the year-ago period, the company said, citing higher steel prices partially offset by high costs of raw materials.
The company, which operates in Mexico, Brazil, Argentina, Colombia, the United States and Central America, posted a 32pct increase in revenue to USD 4.30 bln during the January to March period versus the same quarter a year earlier.
Revenue per ton was just under the record levels reached last quarter, the company said.
Ternium said the Russian invasion of Ukraine in February had drastically altered the global steel market, and that it "should result in an increased level of market volatility over the near term."
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.